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HomeMotoringMercedes says focus on high-end cars is starting to pay off

Mercedes says focus on high-end cars is starting to pay off

The Stuttgart-based group said in a statement that its net profit inched forward to 3.2 billion euros (R55.3 billion) in the second quarter from 3.1 billion euros a year earlier on a seven-percent increase in revenues.

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Unit sales, however, declined by seven percent in the period from April to June, as a shortage of semiconductors put the brakes on production.

Mercedes says its resilient revenue figures resulted from its decision to focus on higher-end models with larger margins.

The carmaker announced in May that it would refocus its efforts on the higher end of the luxury car market. Essentially the future model range will be divided into three categories: Entry Luxury, Core Luxury and Top-End Luxury.

The carmaker said it was raising its revenue outlook for the full year to “significantly above” the 167.9 billion euros (R2.8tr) it booked last year. Mercedes also raised its forecast for underlying or operating profit.

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