Daimler can pay for all diesel carsFebruary 24, 2020
The diesel scandal with Mercedes-Benz cars in Germany is not going to subside, so Daimler is preparing for further financial losses. Last year the automaker spent a substantial amount of money on legal and other expenses.
The German prosecutor’s office may decide on Daimler vehicles equipped with “unacceptable devices” that helped lower the emissions of diesel powertrains. According to relevant media reports, the German concern temporarily suspended the delivery and registration of some of its models, and the total reserves increased from 23 to 30.7 billion euros. Recall that in 2019 Daimler could count on a very large profit. The concern also minimized the amount paid to investors since the financial crisis. The size of the fine reached 870 million euros.
For this reason, the company was forced to reduce the cost of upgrading its diesel cars in terms of their environmental friendliness. Also, the monetary punishment coincided with a decent cost of electrification.
According to Director General Ola Kallenius, toughened environmental standards in Europe on emissions may become a concern for the concern in the next couple of years. In turn, Bloomberg writes that the German automaker may be fined more than one and a half billion euros in 2020 and 2021 for non-compliance with the current European restrictions on CO2 emissions. To bypass these sanctions, Daimler should increase sales of electric cars to 10 percent next year instead of the previous 2.8%.
According to the forecasts of the concern itself, the outbreak of the coronavirus, which has already knocked out the world’s largest car market – China, can affect the economic downturn.
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