Daimler Expects 2013 Profit Flat image

Daimler expects 2013 profit to be flat, as the automaker‘s investment in new models and restructuring plan cut into earnings.

In 2012 Daimler’s earnings before interest and taxes dropped 10% to 8.1 billion euro ($11 billion) and the automaker said it expects profit for this year to be at the same level.

“We did not reach our own targets for earnings and profitability” in 2012, Chief Executive Officer Dieter Zetsche said in the statement. “To ensure that our future growth is even more profitable, we have implemented detailed measures in all divisions.”

Back in September, Daimler announced its efficiency program called ‘Fit for Leadership’, which is aimed at reducing the company’s spending by 2 billion euro by the end of 2014. The Daimler Truck units announced earlier this year its plans to cut 2,100 jobs, from which 1,300 in North America.

Zetsche, who recently has his contract renewed by the end of 2018, will have the difficult task to bring Mercedes back on the first place as the global luxury-car sales leader, a position lost in 2005 to BMW. To accomplish this plan Mercedes will introduce this year a reworked version of its upscale E-Class sedan, the next generation of its high-end S-Class and the four-door CLA coupe.