clear
Wednesday November 22nd, 2017 5:09PM

Daimler profits hit by costs of diesel emissions recall

By The Associated Press
Related Articles
  Contact Editor

FRANKFURT, Germany (AP) — German automaker Daimler said Friday that its net profit fell 16 percent in the third quarter as a voluntary recall to improve diesel emissions hurt earnings at its Mercedes-Benz luxury car brand.

Net profit fell to 2.3 billion euros ($2.7 billion) despite a 6 percent increase in sales revenue to 40.8 billion euros.

The company based in Stuttgart said that earnings at the Mercedes-Benz division, a pillar of the company's earnings, were hit by a charge of 223 million euros to pay for an engine control software update on existing vehicles to reduce diesel emissions. The voluntary recall is part of an effort by German automakers to restore confidence in diesel technology and ward off bans on diesels in German cities. Mercedes-Benz is heavily dependent on diesel engines.

Diesel itself has seen its reputation damaged by the scandal at Volkswagen over cars it had illegally rigged to cheat on U.S. emissions tests, and by the subsequent discovery that cars from other manufacturers emitted more pollutants in everyday driving than they do on test stands.

Earnings at Mercedes were also hit by expenses for developing new technologies and vehicles. Daimler, like other automakers, is sinking billions into adapting to expected changes shaped by digital technology in how people get from one place to another. Those changes could include ordering cars when needed through smartphone apps instead of owning one, as well as autonomous vehicles and low-emission electric cars.

CEO Dieter Zetsche said that the company was preparing itself to adapt with a planned restructuring that would see Mercedes-Benz and the truck and bus divisions become legally independent to give them more entrepreneurial flexibility. The changes are still under discussion and will not take effect until approved by the 2019 shareholder meeting.

"Daimler is operating successfully and leads the premium segment with Mercedes-Benz," Zetsche said in a statement. "Now is therefore the right time to examine — from a position of strength — whether we can position ourselves even better to shape the automotive era definitively and successfully from the top."

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
The Latest: EU to start internal talks on next Brexit phase
European Union Council President Donald Tusk says that the 27 EU leaders have agreed to start finetuning a common position for negotiations on a future trade deal with Britain once it leaves the bloc in 2019
5:45AM ( 16 minutes ago )
French-led EU push for heftier tax on internet giants stalls
France's drive to force internet giants to pay more taxes is losing steam, amid resistance from other EU countries that offer tax shelter to companies like Apple
5:42AM ( 20 minutes ago )
The Latest: US-backed force declares Raqqa free of IS
U.S.-backed Syrian force has declared victory over the Islamic State group in its former "capital" of Raqqa, declaring the city free of any extremist presence
5:40AM ( 21 minutes ago )
Associated Press (AP)
World shares rise as investors await Japan vote, Fed pick
World shares are pushing higher on optimism over the global outlook despite uncertainties over political events in China and Japan and speculation over Trump's choice of the next Fed chief
4:54AM ( 1 hour ago )
Trump's border wall models take shape in San Diego
The last two of eight prototypes for President Donald Trump's proposed border wall are taking shape at a construction site in San Diego
4:39AM ( 1 hour ago )
Hurricanes, earthquakes estimated to cost industry $95B
Swiss Re, one of the world's biggest reinsurers, estimates that Hurricanes Harvey, Irma and Maria, two recent earthquakes in Mexico will cost the industry about $95 billion
4:39AM ( 1 hour ago )
AP Business
Australian car-making ends with last GM plant closing
The last mass-produced car designed and built in Australia has rolled off General Motors Co.'s production line in Adelaide as the nation reluctantly bid farewell to its auto manufacturing industry
11:58PM ( 6 hours ago )
Oroville Dam repair costs will top $500 million
California officials say the cost to repair the damaged spillways at the nation's tallest dam will be at least $500 million, nearly double the original estimate
9:35PM ( 8 hours ago )
Los Angeles police open Weinstein sex assault investigation
Police in Los Angeles say they have launched an investigation of Harvey Weinstein involving a possible sexual assault in 2013
8:54PM ( 9 hours ago )
AP Business - Corporate News
The Latest: EU to start internal talks on next Brexit phase
European Union Council President Donald Tusk says that the 27 EU leaders have agreed to start finetuning a common position for negotiations on a future trade deal with Britain once it leaves the bloc in 2019
5:45AM ( 16 minutes ago )
French-led EU push for heftier tax on internet giants stalls
France's drive to force internet giants to pay more taxes is losing steam, amid resistance from other EU countries that offer tax shelter to companies like Apple
5:42AM ( 20 minutes ago )
The Latest: US-backed force declares Raqqa free of IS
U.S.-backed Syrian force has declared victory over the Islamic State group in its former "capital" of Raqqa, declaring the city free of any extremist presence
5:40AM ( 21 minutes ago )
List fires 67 to take 1-stroke lead halfway through CJ Cup
Luke List has fired a 5-under 67 to take a one-stroke lead after the second round of the CJ Cup in Jeju, South Korea
5:39AM ( 22 minutes ago )
EU leaders brainstorm ways to speed up Brexit talks
European Union leaders are weighing progress in negotiations on Britain's departure from their club as they look for new ways to speed up the complex, painfully slow moving process
5:21AM ( 40 minutes ago )