Auto Company Daimler Profit Higher Than Expected Despite Chip Shortages

Read Time:53 Second

Daimler, the parent company of Mercedes-Benz, has made more profit than expected in the second quarter. Due to the worldwide chip shortages, the German car group focused on the more expensive segment of cars, where higher margins are achieved.

Due to the scarcity of chips, production at car manufacturers has been limited since the end of last year.

Gross profit, before taxes, among other things, amounted to almost 5.2 billion euros in the second quarter. Daimler reports this based on preliminary figures. Analysts expected on average a profit of 4.1 billion euros.

Also, in the first quarter of 2021, the German car group made a much higher profit than expected. Sales were then strongly boosted by a huge increase in demand from China, but the business also went well in North America.

The company has not yet released regional sales figures for the past quarter. Last year, Daimler’s car sales fell sharply as a result of the corona crisis.

The Mercedes parent company will release full second-quarter figures on July 21.