Daimler, the manufacturer of Mercedes cars, said today, Wednesday, that it had a good start in 2021 despite the global shortage of semiconductor chips, and it plans to accelerate the shift in its model lineup to electric cars.
The German company explained that it expects 2021 to be a much better year in terms of revenues and profits compared to the year 2020, when the epidemic began.
And like German competitors BMW and Volkswagen, Daimler benefited from Chinese demand for high-margin luxury cars in the second half of 2020, helping sales to recover from a production halt in the spring.
Daimler is moving forward with restructuring and accelerating the shift to electric mobility, as 2020 has been the most challenging for the company, but we are confident of the current financial year.
Based on projected market development and current divisional valuations, unit sales, revenue, and profits in 2021 are still expected to be significantly higher than the previous year's levels.
Many companies in the auto industry have struggled to maintain production due to a chip shortage this year.
Daimler said preparations are underway for the planned listing of its truck manufacturing unit, Daimler Truck, and is due to be completed by the end of 2021.
The company announced plans to split the unit, the world's largest truck and bus maker, in February as it seeks to increase its attractiveness to investors as a focused company for electric and luxury cars.
Daimler said, it intends to accelerate the electrification of its product range, but did not provide details, and the company made clear in 2019 that it expects hybrid or fully electric cars to account for more than 50 per cent of car sales by 2030.
Ola Källenius, Daimler Chairman and Chairman of Mercedes, the first non-German to hold both positions said: The company today has the broadest electrical range in the automotive industry from city cars to heavy trucks, but we want to accelerate the electrification of our product range. Our goal is to reach this goal sooner, and for nearly two years, we presented our ambition for 2039, and we want a carbon dioxide neutral fleet of new cars.
And earlier this month, BMW said it expects at least 50 per cent of its sales to be zero-emission vehicles by 2030. Automakers are racing to introduce new electric cars as carbon dioxide emissions targets in Europe and China tighten.
Next month, Daimler is preparing to unveil the EQS, Mercedes' all-new electric sedan that uses a platform dedicated to electric vehicles, to be followed by EQB as well as EQE later this year.
The company said on Wednesday, the range of the EQS battery should reach 770 km.