This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China Sales to Drive Up Daimler Stock Price

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- For the first three quarters of 2011, Daimler AG (DAI) saw huge momentum and sales growth for its Mercedes-Benz brand in China. The 38% year-to-date growth follows a strong push into the Asian market in recent years.

Mercedes-Benz was the fastest-growing premium brand in China from 2007-2009. The trend continues with the SUV family delivering year-over-year growth of 115%, the M-Class growing 90% and the flagship S-Class growing 41% year over year. Daimler brands such as Mercedes-Benz, Smart, Maybach and Daimler compete globally with the likes of BMW (GR:BMW), GM (GM), Ford (F), Honda (HMC) and Toyota (TM) among others.

See our full analysis for Daimler.

Daimler Forges Ahead in China via JVs

Daimler's presence will be further strengthened by two recent joint ventures with Chinese manufacturers. Earlier this month, Daimler announced a joint venture with Beiqi Foton Motor of Chengdu province to build assembly plants for light commercial vehicles in an emerging market outside of China. This announcement came after the Chinese government's approval of a joint-venture plant by Daimler and Foton to be built within China.

Daimler's Mercedes-Benz division partnered with Chinese automaker BYD in May 2010 to design and manufacture a battery-electric vehicle, or BEV, which is on schedule to unveil a prototype in spring 2012. The venture is partially subsidized by the Chinese government and plans to capitalize on China's expected BEV demand increase over the next few years.

Despite the extremely positive current sales and upcoming projects, Daimler is getting hit hard by higher raw material prices and currency exchanges, in addition to the costs of launching these new projects and models.

Trefis predicts that the number of vehicles sold for both Mercedes-Benz and Daimler International -- the two most influential divisions on the price of Daimler stock -- will increase exponentially over the next five years. The strong vehicle sales will drive up the stock price as the global economy, and Daimler's European home market in particular, stabilize.

Trefis currently values Daimler stock at $83, a near 60% premium over the current market price.

Click here to find out how a company's products impact its stock price at Trefis. This article was submitted as part of our Trefis Contributors program. Email us at if you're interested in participating.

Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs