Daimler says luxury-car market is to recover

Daimler AG, the world's second-biggest maker of luxury cars, said the market for its models may recover as early as the end of the year, boosted by more optimistic consumer sentiment.

An "improved mood" may already be developing among high-end auto buyers that may help luxury-car sales recover faster than the volume-car market, Chief Executive Officer Dieter Zetsche said today in an interview at a business conference in St. Petersburg, Russia.

Chief executive of Daimler AG Dieter Zetsche poses beside a Mercedes E 220 CDI

The company, which makes Mercedes-Benz and Smart models, lost 1.3 billion euros ($1.8 billion) in the three months through March, posting its first back-to-back quarterly losses in at least 10 years. Stuttgart, Germany-based Daimler's U.S. car and light-truck sales fell 33 percent in May. The carmaker aims to cut 4 billion euros in spending this year. It forecast a "significant" second-quarter loss in April 28.

Daimler rose 38 cents, or 1.4 percent, to 27.73 euros in Frankfurt trading. The stock has gained 3.9 percent this year.

The company, which is also the world's biggest maker of heavy trucks, would consider the "possibility" of adding to its 10 percent stake in Russian commercial-vehicle manufacturer OAO KamAZ as the country's truck market is likely to rebound after next year, Zetsche said. Daimler bought the holding in Naberezhnye Chelny-based KamAZ in December after discussing the purchase of a 42 percent stake.