Daimler Chrysler , Second largest car producer in the world will stop its production due to financial crisis. The German automaker will stop its production from 11 th of dec til beginning of January due to weak financial conditions.
Mercedes reported that they issued a profit warning on full years earning after posting a profit of 275 million dollars in the third quarter, reversing net loss of 1.9 billion dollars last year in the same quarter.
As well the German car producer based in Stuttgart, Germany reported that its revenue declined by 7 % to 30.5 billion in the quarter on declining sales in north America, compared to revenue of 32 billion dollars posted in the same period a year ago.
It is enormous how the financial crisis will effect others industries . This example shows that Mercedes has to stop its production for one months because there is no more demand for such a exclusive car. Its very difficult to invest in a new car in this kind of stressful financial period. Mercedes had to get rid of 10 000 part time workers in order to stay stabile.
This example shows that not only banks suffer from this, as well as any other company in any other industry company.
1 Kommentar:
I think that the more secondary is the purchase, the more the industry/company is going to suffer from the financial crisis.
How can someone loosing money everyday and not knowing what is up front financialy talking, buy an expensive car and feel good about it?
Even the looks from outsiders could feel heavy on them.
Luxury industry is probably going to feel the most affected by the economic disturbances of the following months because it represents the first expenses wealthy people are going to cut as a safe way to limit cash shortage.
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