EoW May 2008

Helped by the sale of its Chrysler division in the US, Daimler on 15 th February reported a profit for fourth-quarter 2007. Net income in the quarter was $2.5 billion, in contrast to a loss of $18.4 million in the equivalent period a year earlier, Daimler said. Revenue fell 1.9%, to $39.9 billion. Dieter Zetsche, the chief executive, predicted further earnings growth in 2008 as demand for vehicles in emerging economies outweighs a looming recession in the United States, Daimler’s biggest market. Its disposal of Chrysler last year will let Stuttgart-based Daimler focus on improving profitability at remaining divisions, Mr Zetsche said. Elsewhere in automotive . . . The German auto maker BMW said on 10 ❈ ❈ th March that it would spend $750 million to expand its Greer plant in western South Carolina, adding 1.2 million ft 2 of manufacturing space. BMW intends to produce a new generation of its X3 sport utility vehicle at the site, and to make the plant the exclusive source for the X3 and X5 sport utilities as well as for the X6 sports coupe introduced at the North American International Auto Show held in January in Detroit. The announcement about the expansion in the US, which will create 500 jobs, came two weeks after BMW said it planned to cut 5,600 jobs over two years (5,000 of them in Germany), representing 7.5% of its global work force. Porsche Cars North America had sales of 36,680 cars in ❈ ❈ the US and Canada in 2007, and accounts for nearly 40% of Porsche’s global sales volume. From now on that unit of the German auto maker will be focusing entirely on the US market under the leadership of a new president and chief executive who formerly headed up the French operation. To oversee Canadian sales, in mid-February the auto maker set up Porsche Cars Canada, a subsidiary based in Mississauga, Ontario. Both companies import Porsche sports cars and are wholly owned subsidiaries of Porsche AG, with headquarters in Stuttgart. Ford Motor Co said on 4 ❈ ❈ th March that it is developing a new business plan for Volvo that will set the unit, which it acquired in 1999, to operating on more of a stand-alone basis. The Detroit auto maker indicated on its website that a “top priority is to return Volvo to sustainable profitability.” Ford in November 2007 took the Swedish luxury brand off the auction block and said it would integrate Volvo more fully into purchasing and development efforts. Analysts consider Volvo the most valuable of Ford’s three European luxury brands. Dorothy Fabian USA Editor

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EuroWire – May 2008