Daimler CEO puts struggling Chinese EV brand Denza on notice

Daimler AG Chief Executive Officer Ola Kallenius stated the success of the most recent Denza crossover will decide the long run prospects of the Chinese electric-car brand with accomplice BYD Co. Ltd., following years of lackluster gross sales.

“The money funding is behind us” for the model, Kallenius told reporters Thursday. “Now we look how Denza develops and then we’ll make decisions.”

Tepid demand for Denza’s EVs has raised considerations because the maker of Mercedes-Benz vehicles works to raise returns. BYD declined to remark.

Daimler and BYD established the brand a decade in the past to faucet progress within the Chinese new-energy car market. While gross sales have taken off, fierce competitors in price-sensitive quantity segments is posing a problem with regard to profitability.

(Also learn | Daimler sees Covid-19 pandemic recovery lifting gross sales, income)

“We maintain the view that solely EVs geared towards the upper finish of the market makes financial sense,” Sanford C. Bernstein analyst Arndt Ellinghorst stated in a word.

Kallenius has taken various steps to overtake the world’s largest maker of luxurious vehicles and business automobiles since changing into CEO in 2019. Daimler this month stated it’ll spin off its sprawling vehicles division to make each corporations extra nimble.

Earlier, the company folded the Smart minicar brand right into a three way partnership in China and offered the unit’s French manufacturing unit to Ineos Group. The strikes are a part of a plan to focus on luxurious vehicles filled with subtle digital gadgetry.

This story has been printed from a wire company feed with out modifications to the textual content.

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