Mercedes' plan for ambitious growth and increased profits has reportedly frustrated some investors who believe the targets are unobtainable and contradictory.
According to the Detroit News, investors are wary of Mercedes' plan to become the largest luxury automaker by doubling their annual sales to 2.7 million units by 2020. They are also doubtful about the company's promise to return a ten percent operating profit by the end of the decade.
One of the key issues appears to be Mercedes' focus on smaller models like the A-, B-, CLA- and GLA-Class. Investors contended that these models will be sold at lower prices and return lower profits than models like the C-, E- and S-Class.
High labor costs and slowing sales are also making investors nervous. This, combined with disappointing earnings reports, has led some analysts to say the company is "in denial" and not on the right track. In the end, many analysts believe Mercedes can only reach one of their targets: high sales or high profits.