Could Daimler Lose Because of Mercedes Electric and Autonomous Innovations?

Daimler boosts sales and expects revenue up in 2018, though company profits may go down. The possible reason for this can be investments in innovative development of electric and autonomous cars made by German automobile flagship.

The automaker reported a loss of one fourth of its earnings forecasted and declared a decrise in margin on Mercedes autos. The company predicts this year earnings before interest and tax (EBIT) to become the same as in 2017 due to development expenses.

Daimler’s EBIT of the last quarter of 2017 was equal to 3.47 billion euros. The return on sales at Mercedes-Benz decreased the same time on 1 percent and amounts to 9.7 percent now. Although unit sales raised 4 percent.

Mercedes kicks out its innovative affiliated brand of electrical cars. Daimler concentrates on the future of Smart marketing. Smart revealed the Vision WE ForTwo Concept in 2017 in Frankfurt, Germany. This small electric car is aimed for vehicle sharing. This is the first step made from ‘CASE’, a new Daimler strategy.