Daimler share price hit by diesel scandal erodes profit growth
The maker of Mercedes-Benz was forced to recall more of its cars in emissions cheat probe, putting a major dent in its profit growth.
Daimler was forced to issue its third profit warning of the year as its diesel engine emissions scandal destroys growth at the Mercedes-Benz maker.
The German auto company was forced to cut its 2019 profit forecast ahead of its second quarter (Q2) earnings, as the fallout from its emissions scandal forces the business to recall more cars.
In fact, the company is expected to recall a further 60,000 diesel engine cars, with the carmaker already forced to return 700,000 vehicles to its factories since April.
Daimler share price slides further after profit warning
The news prompting a reaction from investors, who helped drag the carmaker’s share price down more than 3.6% on Monday, with the company’s stock already losing more than 20% of its value since April.
In a statement, Daimler said that ‘various ongoing governmental proceedings and measures relating to diesel vehicles’ will take its toll on the carmaker’s Q2 earnings, with it forecasting that its 2019 profit will come in flat with last year.
Daimler and other German carmakers still reeling from diesel scandal
German carmakers have all faced the wrath of regulators since Volkswagen was found to have rigged millions of diesel engines to cheat on carbon emissions tests back in 2015.
The news called into question the environmental impact of diesel engines and has hurt the bottom lines of Daimler, BMW and Volkswagen.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/European-central-bank-banner.jpg/jcr:content/renditions/original-size.webp)
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.