Mercedes Investors Unsure of Company’s Future Prospects

However, some investors have begun voicing their concerns regarding the self-imposed targets that Mercedes is trying to reach, as aside from wanting the number one spot, they have also vowed to return an operating profit of 10%, also by the year 2020. The investors are also displeased with Mercedes’ push of cheaper models, such as the A-Class, B-Class, CLA and GLA, which while expensive, would not give the company the same profit margin as the larger, more expensive C-Class, E-Class, S-Class, and their larger SUVs.

Also, the fact that the company is doing nothing about the rising cost of labor, or the sub-par earnings reports they have received tells us that perhaps they are just trying to hard, and as with any other branch of industry, forcing things in an unnatural way never leads to the desired results, in the end.

Story via The Detroit News