Mercedes-Benz AG raised its outlook, expecting more new models will keep it racing to meet demand during the rest of the year.
The automaker pointed to “solid” orders and “healthy and high-quality” demand for vehicles like the flagship electric EQS while reporting better-than-expected second-quarter earnings Wednesday. A new SUV version of the model will join the lineup later this year and help bring in more buyers.
The world’s biggest luxury-car maker now expects group profit to be slightly higher than last year, rather than unchanged, while returns from carmaking are seen at between 12 per cent to 14 per cent, slightly higher than before. While outlining a solid few months ahead, Mercedes chimed with other major manufacturers with concerns about high inflation, supply-chain problems and a worsening energy supply crisis in Europe. Carmakers continue to battle a dearth of chips that has led to widespread production halts. Most manufacturers are seeing signs of the logjam easing, though they’re still far from assured to procure enough of the high-tech components.
Mercedes also has taken further steps to keep its operations running due to the threat of gas rationing in Germany after Russia’s decision to cut supplies through a key Baltic sea pipeline have raised fears of an abrupt halt of deliveries during winter. The Sindelfingen plant, where the company makes the high-end S-Class and Maybach, can now function without natural gas, a fuel typically used in automaker’s paint operations.
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