Daimler corrects profit forecast for 2018

D If Daimler manufactures cars in the USA that are exported to China, the carmaker is subject to Chinese tariffs. 'The decisive factor here is that, from today's perspective, Mercedes-Benz Cars can expect lower than previously expected SUV sales as well as higher costs - which cannot be fully passed on to customers - due to the increased import tariffs for US vehicles in the Chinese market,' said Daimler. But the new certification according to WLTP as well as the diesel recall and sales difficulties for Daimler buses in Latin America have an additional impact on earnings.

Daimler gives the new expectations for EBIT (earnings before interest and income taxes) for the 2018 financial year as follows:

• Mercedes-Benz Cars: slightly below the previous year's level,
• Mercedes-Benz Vans: significantly below the previous year's level,
• Daimler Buses: in the order of magnitude of the previous year
• Daimler Group: slightly below the previous year's level

So far, Daimler boss Dieter Zetsche had an EBIT of 14.7 for the 2018 financial year Billion euros targeted. This forecast was slightly above the previous year's result. Now it will be slightly below that.

Background to the trade dispute: The USA has imposed tariffs on Chinese products in order to strengthen the domestic economy. China countered with higher taxes on US goods. Since the USA wants to continue turning the import tariff spiral, China will react with 25 percent tariffs on cars from the USA. This could also have an impact on BMW, for example. The Munich car company also manufactures in the USA. A total of around 270,000 vehicles from the USA are delivered to China by German car manufacturers.