DMLRY - Daimler AG

Other OTC - Other OTC Delayed Price. Currency in USD
12.63
-0.10 (-0.79%)
At close: 3:59PM EDT
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Previous Close12.73
Open12.71
Bid0.00 x 0
Ask0.00 x 0
Day's Range12.63 - 12.76
52 Week Range12.63 - 17.45
Volume151,519
Avg. Volume186,119
Market Cap54.031B
Beta (3Y Monthly)1.47
PE Ratio (TTM)5.12
EPS (TTM)2.47
Earnings DateN/A
Forward Dividend & Yield0.91 (7.14%)
Ex-Dividend Date2019-05-23
1y Target EstN/A
Trade prices are not sourced from all markets
  • Barrons.com4 days ago

    Sell Fiat Chrysler Stock: Goldman Sachs Takes a Bearish View of European Car Makers

    Goldman Sachs initiated coverage of European auto makers on Tuesday, outlining the challenges it sees them facing. It recommends selling Fiat Chrysler and Daimler.

  • Lear Joins Daimler Seeing Gloomy Outlook for Global Car Industry
    Bloomberg5 days ago

    Lear Joins Daimler Seeing Gloomy Outlook for Global Car Industry

    (Bloomberg) -- A major supplier of automotive seats joined the largest luxury-car maker in cutting its earnings forecasts as weak sales in the world’s biggest markets darkens the outlook for the industry.Lear Corp. warned investors Tuesday that net sales may drop to as low as $19.8 billion this year, down from an earlier projection of as much as $21.7 billion. The supplier of seats and electrical systems followed Mercedes-Benz maker Daimler AG in dialing back its earnings outlook, saying a second-half rebound in industry production volumes may no longer be in the cards.“We now believe general macroeconomic and industry factors will continue to put pressure on sales and earnings throughout the remainder of 2019,” Ray Scott, Lear’s chief executive officer, said in a statement.Analysts have slashed estimates for auto sales this year in China, which is going through the first slump in a generation. Carmakers are cushioning declines in the U.S. by delivering more vehicles to rental companies and other fleet customers. More consumers have been getting priced out of the market by higher financing costs and automakers’ culling of slow-selling sedans from their lineups.“It is fair to say we don’t know anyone who feared that a Lear guide down could be this bad,” Chris McNally, an analyst at Evercore ISI, wrote in a report Tuesday.Lear shares opened down as much as 7.4%, the biggest intraday plunge since November 2016. The stock was down 2.9% to $131.30 as of 11 a.m. in New York.\--With assistance from Keith Naughton.To contact the reporter on this story: Kyle Lahucik in Southfield at klahucik3@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Benzinga9 days ago

    Daimler's Second Quarter Shaping Up To Be A Doozy

    The company called out increased legal provisions for faulty Takata airbags, another increase in provisions for Mercedes-Benz diesel vehicle recalls, and a shuffling of the deck in the Mercedes-Benz Vans group as reasons for the newly lowered guidance. One of the few bright spots in the quarter will be Daimler Trucks, the maker of Freightliner and Western Star trucks.

  • Daimler's Luxury Sheen Shows Cracks After Fourth Profit Warning
    Bloomberg9 days ago

    Daimler's Luxury Sheen Shows Cracks After Fourth Profit Warning

    (Bloomberg) -- Barely three weeks ago, Daimler AG dialed back profit expectations for the year. The move was seen as a housekeeping exercise to allow Chief Executive Officer Ola Kallenius to start with a clean slate.But on Friday, the Mercedes-Benz maker cut its earnings outlook again -- the fourth warning in just over a year -- suggesting an alarming degree of disarray at the world’s biggest producer of luxury cars at a time when slowing sales and huge investments in new technology are testing the industry.Daimler now sees earnings before some items falling “significantly” below last year’s level, and said second-quarter results had swung to a loss of 1.6 billion euros ($1.8 billion) from a profit of 2.6 billion euros. It blamed provisions for vehicle recalls to fix defective airbags and a need to set aside more money to deal with long-running allegations of diesel-emissions tampering.“Some call it ‘to throw in the kitchen sink,’’’ Evercore analyst Arndt Ellinghorst said in a note, referring to the practice of dumping all the bad news into a single quarter’s results. “Well, Daimler just threw in the dining room table, the fridge and the polished silver.”While issues with airbags from Japan’s Takata started years ago, involving faulty inflators that propelled deadly shrapnel during accidents, Daimler said it discovered new potential issues during laboratory tests and decided to set aside 1 billion euros for a precautionary recall. Facing criticism of a piece-meal response to its handling of the diesel allegations, the company also increased provisions by 1.6 billion euros as fallout from investigations and legal expenses looms.The shares fell as much as 4.5% in Frankfurt, before recovering most of their losses to trade 1% lower at 46.19 euros by 1:13 p.m. Insurance contracts on the company’s debt are the worst performers in the iTraxx Europe index of credit-default swaps early Friday.Aside from one-offs on airbags and diesel, Daimler warned of slower markets and troubles with the rollout of several of its models, adding to a sense of gloom for the carmaker that took the luxury sales crown from BMW AG in 2016 with an overhauled lineup of sporty sedans and sport utility vehicles.Daimler’s latest profit warning didn’t allay concern the carmaker might cut again, according to Jefferies analyst Philippe Houchois, who said its dividend was now “unsustainable” and cut expectations to just 50 cents. Daimler last year paid a reduced dividend of 3.25 euros.The more pessimistic outlook heaps pressure on Kallenius, who’s flanked by new Chief Financial Officer Harald Wilhelm, to implement proposals to cut costs and restore profitability. Investors have said the duo’s strategy remains light on details as the carmaker buckles under recurring revisions that are without precedent in the German car industry. The warning also makes uncomfortable reading for former CEO Dieter Zetsche, leading Daimler for 13 years, who’s set to segue to the supervisory board in 2021.Still, some observers said it makes sense for the new CEO to clean up the problems left over from the previous leadership before attempting to put his own imprint on the company.“It’s better to issue a profit warning now and rebase expectations before he comes up with an updated strategy later this year,” said Daniel Schwarz, an analyst at Credit Suisse.While other carmakers and their suppliers have also warned of deteriorating results, Daimler appears worse hit. BASF SE, the world’s largest chemical maker, last week fired a warning shot across industries with its reduced outlook, blaming slowing markets and the impact of the U.S.-China trade war. Returns at Daimler’s core Mercedes-Benz cars division are expected to drop to between 3% and 5%, down from 6% to 8%, it said Friday.Daimler’s latest in a string of bad news sits uncomfortably next to an announcement by Volkswagen AG and Ford Motor Co. due later Friday that’ll set a new bar on cooperation and cost reduction. The world’s biggest and sixth-largest carmakers will team up on electric cars and autonomous driving to tackle the unprecedented shifts. It’s the second win for VW’s CEO Herbert Diess, who’s making headway overcoming internal strife to overhaul the 12-brand behemoth to also list VW’s truck unit Traton SE last month.“Premium carmakers -- BMW and Audi too -- are struggling to go with the new times and wave goodbye to the glory days,” said Juergen Piper, an analyst at Bankhaus Metzler. “But no one is struggling as much as Daimler.”\--With assistance from Christoph Rauwald, Stefan Nicola and Hannah Benjamin.To contact the reporter on this story: Elisabeth Behrmann in Munich at ebehrmann1@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Frank ConnellyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters9 days ago

    UPDATE 2-Swiss stocks keep a lid on European shares as pharma drag lingers

    European shares were little changed on Friday as drugmakers came under pressure on worries the U.S. government may intervene over high drug prices, while Federal Reserve chairman Jerome Powell's dovish comments helped limit losses. The pan-European STOXX 600 index ended flat but broke a five-week winning streak as regional equities failed to take advantage of the Fed's accommodative stance this week. Swiss stocks underperformed, sliding more than 1% as drugmakers including Roche Holdings, Novartis and Novo Nordisk fell more than 2%.

  • Bloomberg9 days ago

    Mercedes Shows the Car Industry Can't Be Trusted

    (Bloomberg Opinion) -- Profit warnings are never pleasant but few are as comprehensively horrible as the one Daimler AG served up on Friday. If the German car giant’s intention was to convince the investment community that it doesn’t have a grip on its business or earnings forecasts, then well played. Mission accomplished.Usually a warning that spans product recall costs, legal issues, production delays and weak demand might be excused as “kitchen-sinking” (getting all of your bad news out at once). Ola Kaellenius took over as chief executive from Dieter Zetsche in May and a change at the top is often a good moment to reset investor expectations.But this is Daimler’s fourth profit warning in barely 12 months, and the last one came less than three weeks ago. It had already chucked out the kitchen sink; now’s it’s moved on to tearing out the plumbing. On top of the problems disclosed by Daimler in the last warning, the company has now revealed several massive new burdens on earnings, which are related chiefly to the fallout from allegations of emissions tampering in diesel cars. I wrote before about the legal risks that Daimler faces. The upshot is that the German giant made a 1.6 billion euro ($1.8 billion) operating loss in the second quarter and full-year profit is now expected to be “significantly” below last year’s. The Mercedes-Benz division will probably eke out a return on sales of just 4% this year (the midpoint of its expected range). For a premium auto manufacturer, that’s abysmal. The French mass-market carmaker Peugeot SA achieved double that recently.  Oddly, Daimler shares gave up less than 1 billion euros of market value on Friday, which suggests investors were expecting more bad news. Also, some of the new problems are one-offs. Still, the fall propelled Daimler’s dividend yield – the last dividend divided by the share price – toward 7%. That’s not a sign of faith from the markets.Daimler distributed 40% of its net profit to shareholders last year, which means it paid out almost 3.5 billion euros. It’s reasonable to assume 2019’s net profit will be lower than last year and that the dividend will be too. The Bloomberg Dividend Forecast anticipates a payout of 2.65 euros a share, a cut of almost one-fifth. With Daimler’s cash flow under severe pressure, even that looks generous.  To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Daimler warns on profit again, blames diesel and recall costs
    Reuters9 days ago

    Daimler warns on profit again, blames diesel and recall costs

    Luxury carmaker Daimler cut its profit forecast for the fourth time in 13 months on Friday, as it set aside more money to cover a regulatory crackdown on diesel emissions and vehicle recalls related to Takata airbags. The German automaker is among a raft of blue-chip firms to issue a profit warning this week, adding to concerns about the severity of an economic slowdown, particularly in China where confidence has been hit by an ongoing trade war. The maker of Mercedes-Benz cars said it would post a second-quarter operating loss and that 2019 results would be "significantly" lower than last year, compared with its previous forecast for a broadly unchanged performance.

  • Financial Times9 days ago

    Daimler gloom deepens with profit warning

    Daimler’s shares dropped 3 per cent in early Frankfurt trading and dragged down other European automotive stocks with the broad Stoxx 600 auto index sliding 1.4 per cent. While carmakers globally are facing a squeeze from falling sales in the US and China, Daimler has been hit particularly hard by a number of factors.

  • Reuters9 days ago

    European shares flat, Daimler's profit warning knocks auto stocks

    European shares were little changed in early trade on Friday, as investors parsed through China trade data that came in at market open, an indicator of global economic growth, while a profit warning from Daimler knocked down auto stocks. China's yuan-denominated exports rose 6.1% in the first half of this year from a year earlier, while imports increased 1.4%, customs data showed, which resulted in a trade surplus of 1.23 trillion yuan ($178.94 billion) for the first six months. The pan-European stocks benchmark was flat at 0712 GMT with auto stocks down 0.6%.

  • Bloomberg9 days ago

    VW-Ford Alliance Expansion Shows Carmaker Partnerships Are Here to Stay

    (Bloomberg) -- A long history of failed automotive mergers and tie-ups -- from Daimler-Chrysler, to GM-Fiat and BMW-Rover -- used to be reason to doubt that combinations or partnerships between big carmakers were a good idea.But as the world’s biggest manufacturers anticipate an age of increasingly electric, autonomous and shared vehicles, they’re increasingly becoming bedfellows.Volkswagen AG and Ford Motor Co. have scheduled a press conference in New York on Friday after months of talks about joining forces to develop self-driving and electric vehicles. Aligning with one another in the burgeoning fields would build on an existing partnership to work together on commercial vans and trucks.The expanding alliance between the world’s No. 1 and America’s No. 2 car companies is only the latest example of the auto industry giants joining forces to cope with the transformation sweeping their industry. The transition is going to be costly: Since 2010, more than $14 billion has been invested in autonomy and mobility technologies, according to BloombergNEF.“BMW and Daimler are pairing up and matching up on their autonomous-vehicle program, as are Toyota and Uber, and you’ve seen GM and Honda, and now VW and Ford,” said Mike Ramsey, an automotive consultant at Gartner Inc. “That leaves Hyundai and Kia hunting around desperately for partners. And then the remainder, like FCA and PSA.”Here’s a rundown of some of the most noteworthy tie-ups of the last few years among the world’s leading automakers:BMW-Daimler DealsBMW AG and Daimler AG vowed earlier this month to team up on developing cars capable of traversing highways without human intervention starting in 2024. While drivers will remain behind the wheel, the companies said their vehicles will be able to navigate highways and park on their own.The luxury-auto arch rivals also agreed to pour more than 1 billion euros ($1.1 billion) into the car-sharing and ride-hailing businesses they combined to form one joint venture earlier this year to compete with the likes of Uber Technologies Inc. and Lyft Inc.Fiat’s Renault FlirtationFiat Chrysler Automobiles NV -- already an Italian-American amalgam -- pursued a merger with Renault SA earlier this year, though the potential deal abruptly collapsed last month due to the French state’s intervention and concern about the implications for Renault’s existing alliance with Nissan Motor Co. and Mitsubishi Motors Corp.Still, it may be too soon to write off the idea. Renault and French Finance Minister Bruno Le Maire have said talks with Fiat Chrysler could resume once the Renault-Nissan alliance is on firmer footing. Fiat Chrysler Chairman John Elkann told Italian newspaper La Stampa this week called the attempt to merge with Renault an “act of courage.”BMW’s Other BlocsNearly two years before Fiat Chrysler’s merger proposal with Renault, the company entered a coalition led by BMW that’s creating an autonomous-vehicle platform slated to be launched in 2021. Other members of the collaboration include Intel Corp., Aptiv Plc, Continental AG and Magna International Inc.And that’s not all for BMW. Jaguar Land Rover announced in June it will team up with the German automaker to work on its fifth generation of electric-drive technology, which is set to roll out next year with an electric X3 crossover.Daimler Joining GeelyDaimler decided earlier this year to transform Smart, its struggling small-car division, into an all-electric brand rooted in China with the help of its largest shareholder, Zhejiang Geely Holding Group.The two groups also agreed last October to enter China’s ride-hailing and car-sharing business by forming a 50-50 venture. They plan to levereage models including the Mercedes-Benz S-Class and E-Class and the ultra-luxury brand Maybach to battle market leader Didi Chuxing.Honda Hitching RidesEven Honda Motor Co. has pivoted from the go-it-alone approach that it stuck to for decades. The Japanese automaker joined an existing venture between Toyota Motor Corp. and SoftBank Group Corp. earlier this year.Last fall, Honda committed to investing $2.75 billion in General Motors Co.’s Cruise self-driving unit. The two already were working together on electric-vehicle batteries and hydrogen fuel cell systems.Toyota’s Electric-Car CooperationToyota, whose battery-powered RAV4 partnership with Tesla Inc. ended up being a short-lived clash of polar-opposite business cultures, entered another electric-vehicle alliance in 2017 with Mazda Motor Corp.Months after announcing the Mazda pact, Toyota added Suzuki Motor Corp. to the mix, with the two saying they plan to bring electric vehicles to China and India beginning in 2020. And in June, Toyota added Subaru Corp. to its stable of EV partners.\--With assistance from Keith Naughton.To contact the reporter on this story: Kyle Lahucik in Southfield at klahucik3@bloomberg.netTo contact the editor responsible for this story: Craig Trudell at ctrudell1@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • TheStreet.com9 days ago

    Dow Futures Extends Gains, Hold 27,000 Level, As Markets Ride Fed Rate Support

    U.S. equity futures extended gains Friday, following on from record high closes for both the Dow and the S&P; 500 last night, as investors continue to expect interest rate support from the Federal Reserve while betting on underlying strength of the domestic economy.

  • TheStreet.com9 days ago

    Daimler Shares Tumble After Second Profit Warning, European Carmakers Slump

    Daimler shares traded in Frankfurt Friday after the luxury carmaker issued its second profit warning in as many months as it joins domestic rival BMW in seeing significant headwinds in 2019.

  • Benzinga16 days ago

    BMW Group And Daimler AG Partner To Put Autonomous Cars On The Road By 2024

    German original equipment manufacturers (OEMs) BMW Group and Daimler AG inked a partnership on July 4 for a long-term strategic cooperation in autonomous driving, focusing on jointly developing next-generation ...

  • Barrons.com16 days ago

    Tesla Goes It Alone as BMW and Daimler Team Up for Autonomous Driving

    German auto makers BMW and Daimler are jointly building self-driving cars. There are a host of automotive partnerships hoping to remove the driver from driving, but Tesla prefers to go it alone.

  • Mercedes and BMW cars will drive themselves on the autobahn by 2024
    Engadget16 days ago

    Mercedes and BMW cars will drive themselves on the autobahn by 2024

    BMW and Mercedes started working together on autonomous cars earlier thisyear, and now they have optimistic plans to deliver them

  • BMW and Daimler partner on autonomous driving, first results of team-up in market by 2024
    TechCrunch17 days ago

    BMW and Daimler partner on autonomous driving, first results of team-up in market by 2024

    This BMW/Daimler partnership includes developing automated drivingtechnologies that precede Level 4, too, including advanced driver assistancefeatures like smart cruise control and automated parking

  • BMW and Daimler team up on automated driving
    Reuters17 days ago

    BMW and Daimler team up on automated driving

    Some 1,200 developers at BMW and Daimler will team up to develop automated driving technology, the companies said on Thursday, the latest carmakers forced to pool their development resources at a time of shrinking margins. The strategic partnership will focus on developing technologies for assisted driving systems, automated driving on highways and automated parking, BMW and Daimler said in a statement, adding that the two companies will implement the technologies in their cars independently. The two carmakers first announced their plans to join forces on automated driving technology in February, saying they were discussing the possibility of extending their partnership.

  • Reuters17 days ago

    UPDATE 1-BMW and Daimler team up on automated driving

    Some 1,200 developers at BMW and Daimler will team up to develop automated driving technology, the companies said on Thursday, the latest carmakers forced to pool their development resources at a time of shrinking margins. The strategic partnership will focus on developing technologies for assisted driving systems, automated driving on highways and automated parking, BMW and Daimler said in a statement, adding that the two companies will implement the technologies in their cars independently. The two carmakers first announced their plans to join forces on automated driving technology in February, saying they were discussing the possibility of extending their partnership.

  • Moody's18 days ago

    Silver Arrow Merfina 2019-1 S.r.l. -- Moody's assigns Aa3 (sf) to auto ABS Notes issued by Silver Arrow Merfina 2019-1 S.r.l.

    Moody's has not assigned a rating to the EUR 58.7 million Class B Asset-Backed Fixed Rate and Variable Return Notes due October 2030. This represents the first public securitization transaction of MBFSI but it is part of a larger international funding program. The Reserve Fund will be funded to 1% of the total Notes balance at closing and the total credit enhancement for Class A Notes will be 11.5%.

  • BMW Widens Lead Over Mercedes at the Half-Year Mark
    Bloomberg18 days ago

    BMW Widens Lead Over Mercedes at the Half-Year Mark

    (Bloomberg) -- BMW AG more than doubled its U.S. sales lead over Daimler AG’s Mercedes-Benz in June with a strong performance from its fresher line of SUVs.Deliveries jumped 7.5% last month to 31,627, paced by the diminutive X3 crossover and three-row X7 sport utility vehicle. BMW sales rose 2% at the half-year mark, building a lead over Mercedes of more than 9,000 units.Sales for Mercedes, which held the luxury crown the past three years, were little changed in June from a year ago at 26,196 units, leaving the Daimler division down 7.2% in the first half. Deliveries plunged more than 30% for both the C-Class sedan and GLS crossover.Toyota Motor Corp.’s Lexus deliveries slipped 3% in June, leaving the brand up 0.5% year-to-date. The ES sedan was the only high-volume Lexus model to gain in June.(Corrects BMW percent change at half-year mark in second paragraph.)To contact the reporter on this story: Gabrielle Coppola in New York at gcoppola@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Melinda GrenierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Ford says it is cutting 12,000 jobs in Europe to increase profitability
    MarketWatch24 days ago

    Ford says it is cutting 12,000 jobs in Europe to increase profitability

    The move is part a global trend of cost cuts by automakers facing changing consumer demands and large investments in electric cars.

  • Daimler's New Leaders Confront Old Issues as Diesel Bites
    Bloomberg27 days ago

    Daimler's New Leaders Confront Old Issues as Diesel Bites

    (Bloomberg) -- Just one month into the job, Daimler AG’s new executive duo is unearthing skeletons from the diesel-scandal era, hobbling the move toward an electric future with a crisis that erupted almost four years ago.After previously promising a slight earnings gain for 2019, operating profit this year will fail to grow, Daimler said late Sunday in its third downgrade in a year. The company blamed proceedings around allegations of emissions tampering in diesel cars for the more muted outlook, which required higher provisions to account for recalls. The stock fell as much as 5.1%, almost erasing the gain that Daimler had built up since the start of the year.The more pessimistic outlook heaps pressure on Chief Executive Officer Ola Kallenius, who’s flanked by new Chief Financial Officer Harald Wilhelm, to implement their proposal to rein in costs and restore profitability, having taken over only recently from long-term CEO Dieter Zetsche. But investors say the duo’s future strategy remains light on details and lament the rapidly recurring revisions that are without precedent in the German car industry.“It all comes back to the same old fact: Daimler needs to execute better,” said Arndt Ellinghorst, an analyst in London at Evercore. “The endless array of so called ‘one-time’ effects raises questions regarding process, management information systems and ultimately accountability of management.”Ups and DownsZetsche’s own tenure of more than a dozen years had known its ups and downs, skewed toward the latter in the period before his departure. After managing to return Daimler to the top of the luxury-car pack, his last year at the helm was marked by two profit warnings and a falling stock, which ended the year down by more than a third, a considerably poorer return than its two big German rivals, BMW AG and Volkswagen AG.The German car industry is facing a litany of issues, from the costly switch to electric and self-driving cars, to the trade war between the U.S. and China that has complicated sales, because some of the biggest production sites sit in the U.S. and ship their cars to Asia.And while the diesel crisis first erupted at VW in late 2015, it has engulfed the entire industry. Days before the latest warning, Daimler suffered a fresh setback when German regulators issued a mandatory recall for about 40,000 Mercedes GLK SUVs over potentially illegal software to skirt emissions rules. A spokesman declined to comment on a connection to the profit warning.German authorities already slapped Daimler with a recall of 774,000 diesel cars in Europe last June over the use of prohibited devices regulating their emissions. The company continues to claim a clean-engine record.Corporate Culture“Clearly both the near term operational challenges and possible questions around Daimler’s corporate culture are issues that must be addressed with urgency by Daimler’s new CEO,” Dorothee Cresswell, an analyst at Barclays Equity Research, said in a June 24 note.The provision of as much as 1 billion euros may also raise questions on the sustainability of the dividend, which Daimler reduced recently, said Bloomberg Intelligence analyst Michael Dean. The company paid out 3.25 euros a share last year, down from 3.65 euros. While shares fell 4% to 47.65 euros at 2:51 p.m. in Frankfurt trading, bondholders took the third profit warning in their stride.The carmaker’s most liquid euro-denominated bonds, maturing in 2023 and 2026, are barely moving in Monday trading, based on data compiled by Bloomberg. The cost of five-year default insurance remains near its lowest level in more than a year after rising almost 2.5 basis points to 56.9 basis points, based on CBIL prices.Facing InvestigationsThe German manufacturer is facing investigations in Europe and the U.S. over allegedly excessive pollution from its diesel vehicles. Daimler has agreed to software upgrades for millions of cars in Europe, while so far escaping fines. That’s in contrast to VW, where the scandal has so far cost the world’s biggest carmaker 30 billion euros ($34 billion) in fines and provisions.Highlighting the breadth of issues, Daimler on Sunday also warned that its struggling van unit will be unprofitable this year, with a return of sales of minus 2% to minus 4%. The division slumped to a surprise loss in the first quarter as plans to produce a Mercedes-Benz pickup truck in South America fell through.For Kallenius and Wilhelm, the latest revision offers a chance to clean house ahead of a more comprehensive overhaul. Last month, shareholders approved a new corporate structure that will give its divisions for cars, trucks and mobility services more independence. While Daimler’s woes at the Mercedes-Benz cars division underscores the urgency behind the move, it could rally criticism from some investors to implement deeper changes, including a separate listing for the sprawling trucks division, a step that would mimic a move by VW.Kallenius may be new in his job, but he’s no stranger to Daimler, having worked for the company his entire professional life. Wilhelm, too, is familiar with the company, having worked at the carmaker prior to his years spent as finance chief for Airbus SE. Still, the duo may find that they’ve not reached the bottom yet in terms of financial expectations for the year, said Marc-Rene Tonn, an analyst at Warburg Research, citing a “less favorable” sales mix and supply chain constraints.“We fear that Sunday’s profit warning may not be the last for the current year,” he said.(Updates with dividend comment in 10th, bond reaction in 11th paragraph.)To contact the reporter on this story: Christoph Rauwald in Frankfurt at crauwald@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Benedikt Kammel, Elisabeth BehrmannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Automakers post mixed U.S. June sales
    Yahoo Finance Video19 days ago

    Automakers post mixed U.S. June sales

    Yahoo Finance’s Adam Shapiro, Pras Subramanian, and Rick Newman join Direxion Managing Director Sylvia Jablonski to discuss.