Mercedes-Borussia-München is the first major manufacturer in Europe to announce its quarterly profit in excess of $2bn, with Mercedes-AMG and Volkswagen among those companies that have announced profits in excess.
Mercedes-Benz is now one of the most profitable automakers in the world, but the company’s success in China, where it is the dominant market, is also helping to ensure that its profits grow at a steady rate.
The Chinese government has recently made it more difficult for Chinese manufacturers to set up operations in the country, but in the past year the number of Chinese car makers operating in China has dropped by about 20%.
It has also helped to boost global sales of Chinese brands.
China is the world’s second-largest automotive market after the US, and the government has stepped up its efforts to restrict Chinese companies from entering the market.
Merkel has been in power since 2008, and in a recent press conference she announced that she would set up a new committee to oversee foreign carmakers’ investment in the UK.
The announcement came as Germany’s Volkswagen AG was accused of dumping diesel engines in the US and in Europe.
The German carmaker’s profit in 2016 was down on the year’s profit of $1.9bn, according to the Frankfurt-based auto-makers association Auto Bild am Sonntag.
The group said the profits in the second quarter were down by 30% on the same period last year, as sales fell 15%.
It added that the company made a net loss of $3.2bn.