New Mercedes CLA helps Daimler to 16% profit jump

The arrival of the Mercedes CLA, and the consequent jump in compact sales, has led to an increase of 16 per cent in Daimler’s profits.

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There’s an argument that the move in to more compact car sales by premium car makers will see their turnover rise and their profits fall as more compact cars tend to work on smaller margins than high-end luxury cars.

But Mercedes has defied that logic by posting a 16 per cent increase in profits for the third quarter of 2013, boosted by sales of the new compact coupé – the Mercedes CLA.

The sale of Mercedes compact models almost doubled over 2012, with profits for the quarter coming in at €2.23 billion, well ahead of expectations.

The addition of the CLA to the new A and B Class in the compact sector helped Mercedes sales increase more quickly than either BMW or Audi, and the arrival of the new Mercedes GLA – the SUV/Crossover version of the new A Class – in Mercedes showrooms in early 2014 should help increase those numbers further.

Throw in the new S-Class – with an order book already over 30,000 – and it’s easy to see what Mercedes are powering forward, despite the car market in Europe still under-performing, with sales growing strongly in China, the U.S. and South America and a 23 model range available – and a further 13 in the offing.

Onwards and upwards.