Mercedes anticipates fall-out from China-US tariff dispute
21/06/2018
Things are going less well than Daimler predicted for a series of reasons. It said sales of Mercedes SUVs are slower than it anticipated. In a statement on June 20, Daimler said its costs this year are likely to be higher than expected too and it said one of the reasons for this will be increased import tariffs for vehicles from the US being shipped to China.
Mercedes runs a factory in Alabama and makes GLE-Class and GLS-Class SUVs there, vehicles for which China is an important market. “This effect cannot be fully compensated by the reallocation of vehicles to other markets,” Daimler said.
It added that the certification process to meet the demands of the new Worldwide Harmonized Light Vehicles Test Procedure (WLTP) is likely to increase costs in the second half of the year. WLTP aims to introduce an agreed standard for measuring the carbon emissions of cars.
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