Daimler has predicted "a significant increase in profit" during 2014, due to strong sales of its new vehicles, like Mercedes-Benz models, according to Reuters.

New vehicle sales have helped the automaker shake off its previous earnings failures, causing the company to drop as low as third place in luxury car sales back in 2011.

After falling behind German rivals like Volkswagen's Audi and BMW, Daimler caught up in 2013, and a big reason for that was the redesigned vehicles it launched, including the A-Class sedan.

Mercedes-Benz sales in the U.S. and Europe increased during 2013, help, and deliveries in China rose 15 percent.

"The numbers are good, outlook is good, it's all good," Metzler Bank analyst Juergen Pieper said, according to Reuters. "Daimler came off its high horse, realized they were no longer in front and began to fix things."

Daimler confirmed this week that it expects group earnings before interest and tax (EBIT) from ongoing business to "increase significantly" this year, based on improved profitability at its cars and trucks units.

"2013 was a year that we didn't begin particularly well, but which we ended very successfully. Our efforts paid off," Zetsche said.

Daimler said around 130,000 employees will get a bonus of 500 euros along with a profit sharing payment of 2,541 euros.

Auto sales in 2014 are expected to increase 3.4 percent, according to research conducted by IHS. 

See Now: OnePlus 6: How Different Will It Be From OnePlus 5?