Business Essentials for Professionals


Post Lockdown, Daimler Reports Pick Up In Business In China

Post Lockdown, Daimler Reports Pick Up In Business In China
Following the relaxation of lock down measures in China imposed to prevent the spread of the coronavirus pandemic and with businesses and shops reopening in the country, there has been some stabilization of business in the market, said the German auto maker.
A senior manager of the German car maker told a newspaper on Sunday that it was experiencing some demand in the Chinese market – the largest auto market of the world.
"In China alone, we sold around 50,000 vehicles again in March. That makes us confident,", said Markus Schaefer, managing board member for production, told Bild am Sonntag newspaper.
In the January to March quarter, about 477,400 passenger cars in total were delivered worldwide by Mercedes-Benz. The newspaper report however did not mention the number of cars that were delivered in the aforesaid quarter in the Chinese market. Mercedes-Benz had delivered a total of 694,200 of its cars to customers in China last year which accounted for about 29 per cent of the total sale of the company globally.
Cars are set to roll out of the assembly line of the company in Germany again, after the coronavirus caused lockdown there as well, starting Monday. Production of E- and S-Class vehicles will be started at the Sindelfingen and Bremen passenger-car plants of the company in Germany.
China is the largest market for the S-Class built in Sindelfingen. Under normal circumstances, a number of hundred cars are assembled and rolled out off the assembly line of the company in its Sindelfingen every day in Germany.
"We won't reach this number right away when production starts next week," said Schaefer.
On Thursday, an almost 70 per cent drop in its first quarter operating profit was reported by primarily because of the novel coronavirus pandemic. The company also warned that it will also experience a fall in the cash flow this year which the company uses to pay dividends to shareholders.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc