While some domestic automakers are feeling the pinch of the struggling economy, the parent company of Mercedes-Benz is expecting a great year in 2008.
According to Dieter Zetshce, the CEO of Daimler AG, Benz sales will undoubtedly surpass the total sales figure from 2007. The company’s new models, he says, are largely to thank for the expected sales. The new SLK sports car, GLK SUV and A-Class compact cars are likely to attract many new customers in the market. He made the announcement in a short speech at the North American International Auto Show in Motor City more than a week ago.
If the predictions are true, the end of 2008 will mark the 15th consecutive year in which sales increased for the luxury automaker.
Although new models are the main reason for the continued increase in sales, Zetsche also noted that the company has been able to increase production in recent years. After eliminating over 9,000 factory jobs and making models with fewer parts, production is much quicker because it’s less complicated. With fewer stops to make along the assembly line, cars are moving from the factory to your local Mercedes-Benz dealer in a fraction of the time that they once did.
So what is Daimler AG and Mercedes-Benz doing with the profits from increased sales?
In the coming years, the luxury automaker plans to spend about four percent of its revenue on creating safer and more efficient vehicles. Mercedes-Benz already has some of the safest and most fuel-efficient vehicles on the market. This just goes to show that the company continues to improve its already superior products to stay ahead of the competition.
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