December 19, 2018, 11:20

German Carmaker Daimler Lowers 2018 Profit Outlook Amid Diesel Scandal

German Carmaker Daimler Lowers 2018 Profit Outlook Amid Diesel Scandal

MOSCOW (Sputnik) – German automotive corporation Daimler AG said on Friday it had lowered its profit outlook for the third quarter of 2018, warning of an increase in costs related to polluting diesel engines.

“As a result of recent developments, Daimler AG today reassessed its earnings outlook for the year 2018 for the Mercedes-Benz Cars and Daimler Buses divisions and for the Daimler Group… Earnings are now significantly below market expectations: Group EBIT amounts to €2,488 million [$2,856 million] (Q3 2017: €3,409 million),” the company’s press release read.

The reassessment was made mainly because of “an increase in expected expenses in connection with ongoing governmental proceedings and measures in various regions with regard to Mercedes-Benz diesel vehicles.”

READ MORE: EU Commission Opens Anti-Trust Probe Into Collusion Between BMW, Daimler, VW

In June, the automaker was ordered to recall some 700,000 diesel cars across Europe as they were found to be fitted with software masking high levels of harmful nitrogen oxide gases (NOx). Daimler said it would upgrade the engine software.

READ MORE: Denmark Pledges to Stop Diesel, Petrol Cars by 2030 in ‘Ambitious’ Climate Plan

Source: sputniknews.com

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