Daimler’s profit fell 60 percent. And this is the worst result in 10 years

Daimler’s profit fell 60 percent. And this is the worst result in 10 years

February 12, 2020 0 By autotimesnews

The main reasons are the high costs of creating electric cars and hybrids, as well as fines due to the diesel scandal

Daimler published its 2019 financial report. It follows from the document that the automaker’s net profit was 2.7 billion euros, which is 60 percent less than in 2018 and the worst result in 10 years. At the same time, revenue amounted to 172.7 billion euros, which is three percent more than a year earlier.

The sharp drop in profits is due to several factors. Firstly, Daimler invests heavily in electrifying existing models that must comply with stringent European environmental standards, as well as in the development of electric vehicles. Secondly, last year the automaker was fined four billion euros in the diesel scandal case.

After a fall in annual earnings, Daimler reduced its dividends to 0.90 euros (0.98 dollars) per share. At the same time, a year earlier, dividends amounted to 3.25 euros per share.

As for the Mercedes-Benz brand owned by Daimler, in 2019 it became the leader in sales of luxury cars in the market. In 12 months, 2.34 million new cars were sold worldwide, which is 1.9 percent more than in 2018. For the brand, this is the ninth year of positive dynamics in a row.

Earlier it became known that Daimler intends to take radical measures in order to save 1.4 billion euros. Among them – the optimization of the lineup, as a result of which the S-Class coupe and cabriolet will disappear from the Mercedes-Benz line, as well as massive reductions affecting 15 thousand employees.