Daimler and Renault both see Q3 rebound

German automaker Daimler raised its 2020 profit outlook on Friday (October 23) after a record 24% jump in demand for luxury cars in China in the third quarter.

That helped turn around margins at its Mercedes-Benz cars division, with its return on sales rising to 9.4%, up from 7% a year earlier.

Daimler now expects full-year earnings to reach prior-year levels.

Sales of electric and hybrid cars also delivered a positive contribution to the results.

And will allow the carmaker to meet EU emissions goals.

Daimler shares rose 2% in early trading.

Also getting the Friday feeling was French car maker Renault.

With its cost-cutting plan on track, the firm says it should have positive cash flow from cars by the end of the year, with sales recovering in the third quarter.

Revenue for the period came in at $12.3 billion.

That was a fall of 8.2% from last year, but an improvement on the 35% slide in the first six months of the year.

The firm said it had taken market share in Europe, helped in part by sales of cars such as its electric Zoe.

It added though that the outlook for next year remained uncertain because of new lockdowns.

New Chief Executive Luca de Meo has launched a turnaround plan to jump-start the carmaker's recovery.

It was already struggling more than some rivals before coronavirus crisis.

And it is also trying to patch up its relationship with global alliance partner Nissan.

But it's made some tough decisions.

In May Renault announced plans to cut 15,000 jobs and reduce its production in a bid to save 2 billion euros.