Daimler has lowered its guidance for earnings this year on the back of 'current developments' that includes the impact of higher tariffs on US-made Mercedes-Benz cars imported into China.
The company said 'fewer than expected SUV sales and higher than expected costs – not completely passed on to the customers – must be assumed because of increased import tariffs for US vehicles into the Chinese market'.
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This effect, Daimler said, cannot be fully compensated by the reallocation of vehicles to other markets.
It also said there would be a further negative effect on earnings in the second half of the year in connection with the new certification process WLTP (Worldwide Harmonised Light Vehicles Test Procedure).
In addition, earnings at Mercedes-Benz Vans are [adversely] affected in connection with the recall of diesel vehicles. And earnings at Daimler Buses are negatively affected by the declining demand in Latin America.
As a result, Daimler has now the following expectations for EBIT in the year 2018:
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By GlobalData- Mercedes-Benz Cars: slightly below the previous year,
- Mercedes-Benz Vans: significantly below the previous year's level,
- Daimler Buses: in the magnitude of the previous year and
- Daimler Group: slightly below the previous year's level.
In recent months, US President Donald Trump has ramped up trade tensions with the EU, China and its NAFTA neighbours, with the possibility of an international 'tit-for-tat' trade war increasing.
