Daimler has said that China import tariffs on vehicles shipped from its US plant have dented its second quarter financial results.
Earnings before interest and tax (EBIT – or operating profit) fell by almost 30% to EUR2.6bn as Mercedes margins in China were negatively impacted by pricing effects following new import tariffs applying to US-made cars.
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Furthermore, a fire at a supplier's facility (Meridian Magnesium) in the US and the resulting production shortfall had a negative impact on EBIT in the quarter.
Quarterly revenue was posted at EUR40.8bn (Q2 2017: EUR41.2bn). In terms of 2018 full-year outlook, the company said it expects slight growth in unit sales and revenue, but with group EBIT slightly lower than in 2017.
Daimler also warned of increased costs due to the WLTP (Worldwide Harmonized Light Vehicles Test Procedure) standard – which is 'expected to cause expenses in the second half of the year'. Furthermore, Mercedes-Benz Vans' earnings will be reduced as a result of the recall of diesel vehicles.
"The automotive industry and therefore we too have many challenges to overcome. That's why it's important that we systematically implement our strategy," said Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. "We plan to further strengthen and expand our position with numerous new models and technologies. We are focusing on innovative technologies not only with our CASE strategy, at the same time, we are using Project Future to shape our company for a sustainable and successful future. In this way, Daimler is optimally positioning itself for the future in terms of technology, culture and structure."
