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German automaker Daimler has warned of profits for the fourth time this year, admitting it may not have enough resources to deal with a regulatory crackdown on automakers' supposed handling of diesel emissions .
Although having already announced profits on June 23, the automaker Mercedes-Benz said it has discovered new information that would make its profits before interest and taxes for the second quarter of the year even lower than those announced last month and "significantly lower than the market". expectations. "
Daimler announced Friday a loss of 1.6 billion euros for the second quarter, down from the pre-tax profit and loss of 2.6 billion euros for the same period in 2018.
The profit warning released on Friday is the latest sign of trouble in the vast German auto sector and comes amid signs of slowing growth in the eurozone's mighty economy.
The automaker said that since June 23, it has rebadessed the financial risks badociated with the Mercedes-Benz diesel-related lawsuits and government measures in several areas, "resulting in an increase in planned spending of approximately 1.6 billion euros ".
Daimler had also discovered "new information leading to a revised risk badessment" of an extended global recall of defective car airbags manufactured by Japanese Takata.
This warning led to a 3% fall in Daimler shares at the beginning of the Frankfurt transactions. Other European auto stocks also suffered a shock as the broad Stoxx 600 auto index slipped 1.4%.
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