Daimler, stretched by diesel fines and technology shifts, recorded a loss

Daimler, stretched by diesel fines and technology shifts, recorded a loss

Frankfurt – German car maker Daimler Back in the red By the end of 2019, the cost of developing electric cars and diesel emissions is bettered by the penalty.

The fall in profits, which Daimler had Careful about last month, Exemplifies the challenges facing the German car industry, which can be serious enough to push the country into recession. Vehicles are the country’s largest export, as well as an important part of national identity.

The quarterly loss of 11 million euros or $ 12 million was relatively small compared to gains of 1.6 billion in the fourth quarter of 2018, but it left Mercedes-Benz car and truck maker Daimler in a weak position as it faces economic consequences for Coronavirus in China.

  • Updated February 10, 2020

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      It is a fancy virus named for the crown-like spikes that extend from its surface. Coronavirus can infect both animals and humans and can cause various respiratory disorders, ranging from common colds to more dangerous conditions such as severe acute respiratory syndrome or SARS.
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      According to preliminary research, it appears to be infectious in essence, the equivalent of sarcasm and possibly transmitted through air. Scientists estimate that every infected person can spread it somewhere between 1.5 and 3.5 without effective control measures.
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      Although the virus is a serious public health concern, most people outside of China are at very low risk and seasonal flu is a more immediate threat.
    • Who is working to contain the virus?
      World Health Organization officials praised China’s aggressive response to the virus by shutting down transport, schools and markets. This week, a team of WHO experts arrived in Beijing to provide assistance.
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      The United States and Australia have been temporarily denying entry to non-citizens who have recently traveled to China and canceled several airlines.
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      The most important thing you do is to wash your hands frequently while you are home while you are ill.

Daimler and other craftsmen were forced to close their factories in China for longer than planned after the Lunar New Year, and the virus has kept people away from the showroom. On Monday, the company said it had begun to gradually increase production at its Chinese factory.

China has become a critical marketplace for all German workers and they are irrevocably suffering from the economic impact of the virus. Daimler sold nearly 700,000 Mercedes-Benz cars in China last year, more than double the sales in the United States.

Deutsche Bank economist Stefan Snyder said in a note to clients Tuesday that “the coronavirus provides substantial risk to the expected global recovery, as expected in the Chinese economy,” Mr Snyder added, adding that the recession in Germany earlier this year was “quite probable”.

Like its rival Volkswagen, Daimler also faces substantial charges from allegations that it programmed diesel vehicles. Cheat emission tests. Daimler said Tuesday that it spent $ 1.5 million during the quarter and $ 4 billion a year for legal activities and penalties in Europe, the United States and elsewhere.

The company has revealed that it is under investigation by the US Department of Justice, the Environmental Protection Agency and California regulators, as well as Europe and other jurisdictions.

The allegations have made Daimler protective, just as one of the biggest changes to the auto industry technology has occurred in over a century. Like other craftsmen, Daimler must invest billions in electric cars and autonomous driving or risk becoming irrelevant.

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