The economic downturn has hit the luxury car market. German automobile maker Daimler has reported losses for the first time in ten years.
The world’s second largest car company posted losses of 1.3 billion euros, far greater than analysts had predicted. The company is targetting cost savings of four billion euros. It is also hoping the launch of its new Mercedes Benz E- class model will improve profits. Mercedes accounts for the bulk of Daimler’s operating losses. Meanwhile rival carmaker VW Audi is winning market share. Daimler has agreed to offload its remaining stake of almost 20 percent in Chrysler, to cut costs. Daimler’s exit paves the way for Fiat to strike a planned deal with Chrysler.