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Despite A Semiconductor Scarcity Daimler Made A 4 3 Billion Quarterly Profit

Daimler made good profits in the second quarter as demand for its Mercedes luxury automobiles recovered from the pandemic’s depths, providing cash for the business to invest in its transition to electric vehicles.
The Stuttgart-based firm said Wednesday that profit margins surpassed double digits for the third quarter in a row, at 12.8%, thanks to rising sales volumes and vehicles with higher profit margins dominating the sales mix.
As a result, the company’s cash position increased to 20.9 billion euros ($24.6 billion) at the end of the quarter, up from 20.1 billion euros at the beginning.
Ola Kallenius, the company’s CEO, stated that the funds would be used to invest in electric vehicle technology and the development of a more software-focused company.
Regulatory demands for zero-emission automobiles in the next years, as well as the longer-term development of partially or fully autonomous vehicles, as well as software-driven services enabling people to use cars only when they need them, such as through smartphone apps, are disrupting the sector.
“A significant level of free cash flow in the industrial industry supports our shift towards emission-free and software-driven mobility,” Kallenius said in a statement.
“We are implementing our approach at full speed,” Kallenius said, adding that car production was nevertheless delayed by a worldwide shortage of semiconductor components.
The scarcity, according to the corporation, would continue to hamper sales in the second half of the year.
The business is releasing new electric vehicles and has stated that it hopes to have a carbon-dioxide-neutral lineup by 2039, though it hasn’t established a timeline for ceasing manufacture of internal combustion vehicles — which, in any event, are providing the money needed to fund the transition to zero local emission vehicles.
On Thursday, the corporation will restructure its Mercedes-Benz strategy.
The update comes in the wake of the European Union’s executive commission proposing new aggressive objectives to reduce carbon dioxide emissions, the key greenhouse gas blamed by scientists for global warming and climate change.
By 2035, the commission wants all CO2 emissions from cars to be zero, effectively putting gasoline and diesel engines out of business in Europe.
The business aims to spin off its truck sector later this year, in part because automobiles and trucks are going toward distinct technologies, with cars using batteries and long-haul trucks using hydrogen fuel cells in some cases to reach zero local emission transportation in the coming years.
Daimler’s net profit for the second quarter was 3.7 billion euros, up from a loss of 1.9 billion euros in the April-June period of 2020, when the business had to shut down plants due to the COVID-19 pandemic’s early stages.
The company’s revenue increased by 44% to 43.5 billion euros.

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