Mercedes lifts outlook, shrugs off global woes
STORY: Luxury car makers don’t seem to be feeling the cost of living crisis.
Mercedes-Benz on Wednesday (July 27) raised its outlook for the year, and said it expected a big jump in earnings.
The German firm says its order books are full, with the top end of the luxury segment forecast to grow more than 10%.
That comes despite a backdrop of difficult times for the sector.
European car registrations have declined as supply-chain troubles and rising prices weigh on sales.
But the top end of the market has proved more resilient, with wealthy customers continuing to spend.
On Wednesday, Mercedes reported second-quarter earnings of almost $5 billion.
However, it said the outlook could yet change amid the crisis in Ukraine, rising inflation and rates, and the danger of a resurgent health crisis.
The firm is also making plans for a possible energy shortage if gas supplies from Russia are cut.
Mercedes says it has a plan for reducing its gas intake in Germany by a half.
It’s also found ways to operate the paint shop at a key German plant without any gas.
Mercedes shares rose around 3% in early trades on Wednesday.
