Daimler AG’s New Benzos Hit the Market

DAI: DAIMLER AG logo
DAI
DAIMLER AG

Two new Mercedes models landed in dealer lots the past couple of weeks, which could help boost Daimler AG’s (DAI) revenue from Mercedes-Benz cars in the coming months if sales trends continue. Daimler AG’s new B-Class and M-Class Mercedes-Benz, which customers have been able to order since July and September, respectively, were released on Nov. 19. [1] Daimler also announced recently that it will launch its new Mercedes-Benz ML 63 AMG model in April 2012. [2] Daimler is positioned to benefit from launching the new models if broader positive auto sales trends, especially in the U.S., continue. Automakers like GM (NYSE:GM) have been noting accelerated auto sales growth, with the industry noting a roughly 10% increase in sales through October. [3] Total sales of Mercedes vehicles declined from 2007 to 2008 but have been increasing since 2009, and Trefis analysts project those sales will continue to increase through 2018 as its market share continues to increase.

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Daimler competes with a wide spectrum of smaller, specialized automakers and Trefis expects that intense competition will pressure the company to raise prices. Mercedes Benz Average Pricing Globally has remained flat in the last three years at an average price of about $52,000 due to intense competition and the global financial crisis.

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Trefis expects the price to increase conservatively over the next several years, in-line with the historical average of 4.8% from 2005 through 2009. Mercedes Benz cars and vans drive about 54% of the company’s stock value according to Trefis estimates. Trefis estimates the stock value to be $72, a healthy premium to the current market price.

Daimler also announced recently that it would expand its Car2Go program to Vienna. Car2Go is similar to Zipcar in the U.S., with a model that allows drivers to join the electric car-sharing program to use the cars as they need them. [4] Car2Go is also expanding in U.S. cities such as San Diego and Austin, according to reports this week. [5]

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This article was submitted as part of our Trefis Contributors program. Email us at contributors@trefis.com if you’re interested in participating.

Notes:
  1. New B- and M-Class now with dealers, Company Press Release []
  2. Daimler AG: The new Mercedes-Benz ML 63 AMG, 4-Traders.com quoting Press Release []
  3. GM Sees November Auto Sales Accelerating,  Bloomberg []
  4. Vienna Calling: Launch of car2go in Vienna, Company Press Release []
  5. Electric Car Sharing Program to Launch, 10News San Diego []