Low growth, diesel and airbag headaches provoke profit warning at Daimler
12/07/2019
In a statement on July 12, it said it earnings will be more seriously affected than it thought by a number of issues, including a more extensive recall than it expected in connection with Takata airbags. It said “new information” about this recall had come to light.
It said “ongoing governmental and court proceedings and measures relating to Mercedes-Benz diesel vehicles in various regions” were another factor, as was “lower growth in automotive markets than expected”.
Across the group, Daimler is making extra provision in its accounts for the second quarter of €1.6 billion, of which it will attribute €700 million to Mercedes cars.
The group, whose automotive brands also include Smart, Maybach and Daimler Trucks, achieved full-year profits of €11.1 billion in 2018 on revenues of €167.3 billion.
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