[ad_1]
Daimler AG's quarterly profit fell by 30% due to US and Chinese tariffs
The German automotive group warned that the decline will continue due to new tighter pollution tests (WLTP) affecting sales Mercedes, AFP report and Reuters. All manufacturers must test their vehicles using WLTP before they are put on sale.
But the new global harmonized light test procedure (WLTP), based on real-time data, has generated higher carbon dioxide emissions for some vehicles, delaying official certification and sales. In the second quarter of this year, earnings before taxes and interest (EBIT) declined to 2.64 billion euros ($ 3.1 billion), while revenue declined 1% to 40.8 million.
Daimler Sales
Daimler sales increased 1% in the second quarter to 833,005 units. Thursday morning, Daimler shares have appreciated on the Frankfurt Stock Exchange with 0.8%, while BMW and Volkswagen shares respectively rose by 3.2% and 4%, after Donald Trump and Jean-Claude Juncker announced Wednesday that they reached an agreement on trade between the United States and the EU
US tariffs of 25% on steel imports and 10% on Aluminum imports came into effect on March 23; and as of June 1, they are also applied to EU producers. Trump also threatened to introduce tariffs of up to 25% for imports of cars and auto parts into the EU, a move that would increase vehicle costs, affect car sales and jobs in the auto industry.
The profit margin of the Mercedes-Benz luxury division fell to 8.4% in the second quarter of 2018, compared to 10% in the same period in 2017, due to an increase in the costs of electric vehicles and autonomous. Due to new stricter pollution control procedures, Mercedes' profits in the third quarter of 2018 will be "significantly lower" than those recorded over the previous three months – 1.9 billion euros – the group warned German Thursday.
Mercedes-Benz sales declined 1% in the second quarter of 2018. This year, Daimler expects a profit slightly lower than last year – 14.7 billion euros. Last month, the German Federal Transport Authority (KBA) discovered "five illegal devices" for diesel engines mounted on nearly one million Daimler vehicles, reported Sunday the Bild am Sonntag (BamS)
. The German Federal Transport Agency has asked Daimler to recall the Mercedes Vito light commercial vehicles equipped with Euro 6 1.6 liter diesel engines, as they had installed devices capable of reducing emissions during laboratory tests. The Daimler Group rejected the allegations and announced that it would challenge the ruling, including the court, if necessary.
See also: Tariffs in North America: Ford, huge additional costs
[ad_2]
Source link
