Daimler, the German auto firm that makes Mercedes-Benz, has slashed its 2019 revenue expectations by hundreds of millions of euros. The monetary downgrade, introduced Sunday, is the most recent fallout from the diesel emissions scandal that has rocked the German auto business.
The corporate mentioned that “varied ongoing governmental proceedings and measures referring to Diesel automobiles” will have an effect on the corporate’s second-quarter earnings for the 2019 fiscal 12 months. It mentioned it expects a rise in expenses associated with these proceedings.
German automakers have confronted years of scrutiny concerning dangerous emissions that diesel automobiles produce. That scrutiny comes from a 2015 admission by another German automaker — Volkswagen (VLKAF) — claiming it rigged tens of millions of engines to cheat on vehicle emissions tests.
The revelation trashed confidence amongst client and regulators in diesel know-how and price Volkswagen tens of billions of dollars in remembers authorized penalties and settlements.
In April, the European Commission mentioned Volkswagen, BMW (BMWYY) and Daimler (DDAIF) broke antitrust guidelines by coming together to delay the introduction of two emissions cleaning systems between 2006 and 2014.
Daimler stated on the time that it has been “cooperating extensively” with the Commission and didn’t count on to be fined.
On Sunday, Daimler stated that it is 2019 revenue could be flat to final year’s.