Report: Investors value Mercedes-Benz at half of BMW

News | December 19th, 2012 by 3
bmw mercedes logos61 750x500 Report: Investors value Mercedes Benz at half of BMW

According to Bloomberg, investors value Mercedes-Benz at half what BMW is worth. The two companies continue their head-to-head race to claim the top spot in …

According to Bloomberg, investors value Mercedes-Benz at half what BMW is worth. The two companies continue their head-to-head race to claim the top spot in the 2012 sales and just as last year, it will be a close finish.

BMW market cap has surged to 45 billion euros ($58.8 billion) while Daimler / Mercedes-Benz is valued at 42.2 billion. Without the Daimler’s truck business, the actual market cap of Mercedes is 25 billion euros. Interesting is the fact hat in 2012, the market cap of Mercedes-Benz was 15.5 billion euros more than BMW.

“The market is saying that the prospects for Mercedes are much worse than for BMW,” said Hans-Peter Wodniok, an analyst with Fairesearch in Kronberg, Germany. “The market’s always right. In terms of innovation, BMW is the leader.”

bmw mercedes logos61 655x345 Report: Investors value Mercedes Benz at half of BMW

Due to a slower growth in China, along with a brand image that doesn’t cater to young drivers, Mercedes allowed BMW and Audi to widen their sales lead in the premium segment.

Daimler CEO Dieter Zetsche vowed to retake the luxury sales crown from BMW by doubling sales to nearly 2.6 million vehicles by 2020. Mercedes lost that title back ion 2005.

But the challenge is proven to be harder than expected for Mercedes.  The Stuttgart-based automaker had to postpone profit goals in the face of slack earnings, while in the mean time BMW continues to expand by opening new plants, such as the one in Brazil, and launching a new electric sub-brand and a family of front-wheel drive vehicles.

 

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