Daimler’s CEO believes China worries should be lower image

According to a recent newspaper interview, the chief executive officer of Germany’s Daimler believes worldwide financial markets have overreacted to the recent economic disruptions seen in China.

The Chinese economy is the second largest in the world and the country is also the globe’s largest automotive market. But after years of high increases in terms of sales and even higher in terms of profit the worldwide automakers have found the market ready to mature and present the same challenges as any other established economy. Even more, the worries have been augmented because the economy is now at its slowest pace of growth in more than two decades and the automotive sales have been impacted accordingly. Additionally, in recent months the Chinese stock market has also been highly unstable after climbing to new record heights for months.

There’s one carmaker unaffected by all the commotion though – Daimler has seen its Mercedes-Benz brand deliver 53 percent more autos last month than during the same period in 2014 and the company is now mulling a record result of more than 300,000 units this year, according to Dieter Zetsche, speaking for the Bild am Sonntag newspaper. “It’s not a crisis; the financial market reaction and all these gloomy forecasts are overdone,” commented the executive. “We had to run all our factories throughout the summer and even had to bring in 8,000 holiday workers in Germany,” he added. He also added the company’s forecast is also positive when taking the global auto market in to account.

Via Reuters