CEO of Daimler warned of a possible drop in profits due to Brexit

CEO of Daimler warned of a possible drop in profits due to Brexit

February 8, 2019 0 By autotimesnews

The head of Daimler, Dieter Zetsche, issued a warning about the possible negative consequences of a British exit from the European Union (Brexit) after the German carmaker reported a drop in profits.

The profit of the parent company of Mercedes-Benz in 2018 fell by 28% from just over $ 12 billion to 8.67 billion. The fall occurred despite Daimler’s revenue increase of 2% to 190 billion dollars. During the same period, the operating margin decreased by 23%.

According to Zetsche, Britain’s decision to leave the European Union will be one of the key factors in restoring the group’s profitability in 2019. The UK is the fourth largest market in the world, and if Brexit passes without an agreement on a free trade zone, the market of this country will fall dramatically.

In addition, Daimler profits in 2019 will be affected by large group investments in electric vehicles. So, already in the spring of 2019, the all-electric Mercedes EQC model will come out of the conveyor, and by 2022 the company plans to have at least one electrified model in its range, which is 130 models in total.