19 Feb 2010

$US2.6 billion loss reported by Daimler

10:29 am on 19 February 2010

Daimler - the world's second biggest luxury car maker and the owner of the Mercedes Benz brand - lost $US2.6 billion last year.

The result was much worse than expected, despite the company slashing spending and building fewer cars in response to the recession.

Chief executive Dieter Zetsche says the company sold half a million fewer cars in 2009 than it did in 2008.

However, he expects worldwide demand to grow this year with luxury brands expected to lead the way.