July 24 - With improved margins, a focus on cost savings and a suite of new models hitting the showroom, German luxury carmaker Daimler provided evidence that it has turned the corner after a disastrous start to the year. Sonia Legg reports.
2.83 billion euros is today's daily digit in Europe - Daimler's net profit in the second quarter. That's double what it was in the first quarter - thanks to the sale of its 7.5% stake in EADS. The boost was better than expected and helped Daimler's industrial cash flow top 3.5 billion euros. The German auto maker has been struggling to match rivals BMW and Volkswagen Audi for scale and efficiency in smaller cars. It's also not been as successful as its competitors in China because of distribution problems. Its Mercedes luxury car division earned a fifth less than a year ago. That's down to the ongoing slump in core European Markets. But the world's third largest premium car manufacturer is launching new cars. It's overhauled Mercedes-Benz S-Class will hit European dealerships later this year And Daimler hopes to have cut costs by 2 billion euros by the end of next year.