Daimler profit warning sends vehicle shares skidding

The Mercedes-Benz maker Daimler has become the first major company to issue a profit warning after being hit by the escalating trade war between the United States and China.

China said it would collect levies on billions of dollars worth of United States goods, including cars, from 6 July in return. The company has said previously the majority of the SUVs it produces in Alabama are exported around the world but declined to provide China-specific data.

Daimler said it now expects full-year earnings before interest and taxes to come in slightly below last year's level.

The Trump administration has threatened further tariffs on another up to $400bn worth of Chinese goods if China continues to retaliate. BMW, which has large factories in the USA, is also likely to be affected by the trade war.

In late morning trading in Frankfurt, Volkswagen was down 2.4%, while Daimler was more than 4% lower.

Mercedes-Benz had record sales in the first three months of this year, led by China, where sales increased by 17%.

Daimler said the Chinese tariffs will result in "fewer than expected SUV sales and higher than expected costs", which won't be completely passed on to customers.

Daimler also said a new vehicle certification process based on stricter fuel efficiency test procedures will hit sales in the second half of the year, according to CNBC.

Related News:



Most liked

UK to lose access to EU-only police databases: Barnier
He also confirmed that the United Kingdom would need an adequacy decision from the Commission on its data protection standards. This is a fact. "We will not be drawn into this blame game".

Amy Adams Says 'There's a Reason' She Started Playing Nuns & Virgins
And she wouldn't have said a word, by the way, and that's the other part that's [changing] through women being more a part of the engine.

Aston Martin still mulling F1 entry as Red Bull signs with Honda
After ending the unfruitful alliance with McLaren , Honda has started to supply engines to Red Bull's junior team Scuderia Toro Rosso starting from this season.

WWE Announces UK Series: New Championships, Name & Locations Revealed
What are your thoughts on NXT UK? The wrestlers will feature the top talent from both the United Kingdom and Ireland. The UK wrestling scene is going strong with established promotions like Progress, Insane Championship Wrestling.

Police Confirm Love Island Star Sophie Gradon's Death
I can not work out what to say. 'I wish there was more people there for her... because of what she must have felt by herself'. She added: "Am sending all my love, I truly am, to everyone who had the pleasure of ever being in her company".

Video shows priest slap baby during baptism
The father struggles for a few seconds with the priest who refuses to let go and puts his hand over its face to muffle the cries. The person filming the ceremony is heard gasping as the father tries to wrestle his baby away from the priest.

F1 2018 Headline Edition will Include Classic F1 Cars
Will you be picking up F1 2018 later this summer? Button went on to win the Drivers World Championship ahead of Sebastian Vettel. Additional classic cars are still to be added to F1 2018 - which launches August 24, 2018.

Supreme Court lets states charge internet retailers more in taxes
Even so, during oral arguments, several justices had seemed lukewarm on the idea of overturning the old precedent. Looking for news you can trust? The Supreme Court says states can force online shoppers to pay sales tax.

President Donald Trump to sign executive order to stop migrant family separations
President Donald Trump's sudden executive action over the border crisis stemmed some of the urgency for Congress to act. Trump, Vice President Mike Pence spoke publicly on the issue for the first time at the meeting, ultimately echoing Mr.

Socceroos' World Cup hopes alive after Denmark draw
Australia definitely had the Danes' measure in the second-half, with better positioning and more attacking play. Leicester goalkeeper Kasper Schmeichel is expecting another stern test against the Australians.

Jedinak penalty helps Australia hold Denmark 1-1
Don't miss a moment of the World Cup! And the Jiangsu Suning defender, 26, believes Australian confidence is "still running high". Schmeichel, the son of Manchester United goalkeeping great Peter, will prove another formidable obstacle to Australia's plans.

Foxwoods President and CEO dies suddenly
MGM Resorts International Chairman & CEO Jim Murren released a statement about Rappaport's passing. Before moving to Nevada, he was an executive with the Hershey Entertainment and Resort Co.

Trump Holds Rally in Duluth
Trump as a protester is forcibly removed from Minnesota rally: "Was that a man or a woman?" "I see you getting emotional", an MSNBC reporter told the woman.

Audi In Crisis Mode As CEO Arrested 06/18/2018
Audi chief executive Rupert Stadler has been arrested by Munich prosecutors in relation to the ongoing Dieselgate investigations. Audi and Volkswagen confirmed that Stadler was detained on Monday and said he still had a presumption of innocence.

Ryan Giggs sends message to Gareth Bale over Manchester United move
With the firepower we've got [Romelu] Lukaku scores goals, [Alexis] Sanchez, [Marcus] Rashford, Jesse [Lingard]. The Wales global has been heavily linked with a move to the Red Devils over the past few transfer windows.