Investors have valued Mercedes-Benz at approximately half of what BMW is worth, according to a new report by Bloomberg.
BMW has seen its market capitalization increase to 45 billion euros, while Daimler currently sits at around 42.2 billion euros, but that’s with their truck business taken into account. If we are to subtract the truck business from Daimler’s total value, the number will drop to around 22 billion euros for their passenger cars.
Analysts consider Mercedes’ sluggish sales in China, in addition to slow expansion in high-volume segments such as crossover SUVs and an image that doesn’t appeal to young buyers, as the reasons for its market decline.
Mercedes-Benz lost the luxury sales crown to BMW back in 2005, with share prices falling off by around 10 percent, while BMW’s stock has jumped in value by 89 percent, but Daimler CEO Dieter Zetsche vowed to retake the title by doubling sales to nearly 2.6 million vehicles by 2020.