Daimler profits down 5bn

[mioba]

Just read that Damler profits down 2/3 by 5bn. Ouch.
Lets see the return of cheap parts and consequential reliability issues as result of the next wave of inevitable cost cutting.

 

[alexanderfoti]

Wow, unless they start projecting images of cars instead of actually making them, it's hard to see how much further they can cost cut the cars...

They will play catch-up and their financials will recover to 80% of the predicted values pre-covid, I'm sure.

 

[Blobcat]

Unless I’m reading that wrong, they’re still making 2.5bn in profits...
Not losing money, making 2.5bn profit....

 

[MBDevotee]

They aren’t doing anything leading any more though are they.

Saw a What Car video review of the new EQA - conclusion - too dear and not enough range compared to the e-Niro and not nice enough to be compared to the Audi’s and so on in its price range....and so on. Nice interior, but the world is headed hybrid and electric and they are just too far behind at the moment - they will catch up I am sure.

 

[mioba]

Unless I’m reading that wrong, they’re still making 2.5bn in profits...
Not losing money, making 2.5bn profit....

Thats true. But shareholders expecting 3 euro dividend now get 1 euro.

 

[Blobcat]

Thats true. But shareholders expecting 3 euro dividend now get 1 euro.

They’re still making money though. That’s what gets me, companies go under whilst still making profits because shareholders demand more. The should see what the banks are offering % wise before ending companies and putting people out of work.

 

[mioba]

Thats the problem with listed companies. they budget year on year to appease shareholders, cash in the bank - shareholdres want it. Just the way it is, unfortunate as it is.
And totally agree about putting people out of work - horrific, again just to balance the books and appease stakeholders

 

[Janchee]

One of the biggest things that cost large manufacturers nowadays is IT. No one ever installs the vanilla system, so when it comes to upgrade... it’s just got 100x more complicated and expensive one may add. These systems are very complex and skilled people are hard to come by.

Once upon a time, Engineering companies were guarded by their IP however, it’s quite easy now to reverse engineer parts. So that advantage has lost.

Its just sooooo big, it’s really hard to keep up with the exponential technology curve. That’s why start ups are a real threat. They don’t have any legacy rubbish or ‘a guy who’s been here for 30 years’ and doesn’t like the new system.