Daimler CEO says demand has stabilised from coronavirus lows

02 September 2020 - 14:32 By Reuters
Ola Kaellenius, CEO of Daimler AG, speaks during the opening ceremony of the "Factory 56" assembly line at the Mercedes-Benz manufacturing plant on September 2, 2020 in Sindelfingen, Germany. The 11th generation of the luxury car S-Class will be produced in the "Factory 56" and is scheduled to reach dealers in November.
Ola Kaellenius, CEO of Daimler AG, speaks during the opening ceremony of the "Factory 56" assembly line at the Mercedes-Benz manufacturing plant on September 2, 2020 in Sindelfingen, Germany. The 11th generation of the luxury car S-Class will be produced in the "Factory 56" and is scheduled to reach dealers in November.
Image: Lennart Preiss/Getty Images

Daimler Chief Executive Ola Kaellenius said global demand for Mercedes-Benz cars has stabilised from a sharp drop in sales triggered by the coronavirus crisis.

"Demand has stabilised. In China we saw a V-shaped recovery. That's not the case in Europe and North America but we have rebounded from the freefall," Kaellenius told journalists gathered in Sindelfingen, Germany, for the launch of the new Mercedes-Benz S-Class.

A new flagship Mercedes-Benz will make a "disproportionate contribution" to the company's profits, at a time when the luxury carmaker is seeking to lower costs and its breakeven point, he said.

"We have a premium positioning when compared to our competitors. It is not a small advantage and we will be able to sustain it," the Swedish-born CEO said.

Separately, Kaellenius said Daimler's talks with Ineos about selling its plant in Hambach, France were at a "very advanced stage" but declined to elaborate further pending the ongoing nature of negotiations.


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