AutoBeta(AutoBeta.net)07/15 Report--

According to foreign media reports, Daimler issued a profit warning and expects a loss in the second quarter, with a loss of 1.6 billion euros ($1.8 billion) before interest and tax. The company said that the increase in provision costs related to the Takata airbag recall is part of the reason, which will increase by about 1 billion euros. This is the third time that Daimler has cut its profit forecast since June.

In June this year, the German Transport Ministry said Daimler was suspected of illegal emissions, installing illegal software in vehicles to manipulate emission tests. Germany has ordered Daimler to recall 60,000 Mercedes-Benz diesel vehicles for the 2012-2015 Mercedes-Benz GLK220.

Although Daimler confirmed the recall, it said it would appeal the decision and continue to cooperate with regulators in the investigation. The agency said it was further expanding its investigation into other Daimler models.

Daimler said the extended recall related to Takata airbags would increase the company's provision costs by about 1 billion euros, while Mercedes-Benz also suffered losses of 1.6 billion euros as a result of ongoing government and court proceedings and measures related to Mercedes-Benz diesel vehicles. Daimler now expects group earnings before interest and tax (EBIT) to be significantly lower than in the same period a year earlier, after the company released the same EBIT forecast.

In the first quarter of 2019, Daimler's revenue was 39.7 billion euros (299.39 billion yuan), roughly the same as last year, while profit before interest and tax fell 16% year-on-year to 2.8 billion euros (21.11 billion yuan), below analysts' expectations of 2.89 billion euros. Among them, revenue of Mercedes-Benz, which accounts for the highest share, fell 8 per cent to 21.2 billion euros (159.87 billion yuan), profit before interest and tax fell to 1.298 billion euros (9.78 billion yuan), and the rate of return on sales fell from 9 per cent to 6.1 per cent. mainly hit by the rapid growth of small compact cars.

According to Mercedes-Benz sales figures for the first half of 2019, global sales fell 4.6% year-on-year to 1134729 vehicles. Mercedes-Benz declined in all major car markets, only in China.

In addition, carmakers now face having to invest heavily in electric vehicles and self-driving technology to cope with slowing economic growth in China, weak European markets and rising global trade tensions.

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