DDAIF - Daimler AG

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+4.10 (+11.54%)
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  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
Previous Close35.50
Bid0.00 x 0
Ask0.00 x 0
Day's Range38.31 - 39.60
52 Week Range22.75 - 60.00
Avg. Volume71,704
Market Cap42.481B
Beta (5Y Monthly)1.67
PE Ratio (TTM)4.01
EPS (TTM)9.87
Earnings DateN/A
Forward Dividend & Yield0.97 (2.74%)
Ex-Dividend DateApr 02, 2020
1y Target Est36.41
  • Costly Electric Vehicles Confront a Harsh Coronavirus Reality

    Costly Electric Vehicles Confront a Harsh Coronavirus Reality

    (Bloomberg) -- At a factory near Germany’s border with the Czech Republic, Volkswagen AG’s ambitious strategy to become the global leader in electric vehicles is coming up against the reality of manufacturing during a pandemic.The Zwickau assembly lines, which produce the soon-to-be released ID.3 electric hatchback, are the centerpiece of a plan by the world’s biggest automaker to spend 33 billion euros ($36 billion) by 2024 developing and building EVs. At the site, where an East German automaker built the diminutive Trabant during the Cold War, VW eventually wants to churn out as many as 330,000 cars annually. That would make Zwickau one of Europe’s largest electric-car factories—and help the company overtake Tesla Inc. in selling next-generation vehicles.But Covid-19 is putting VW’s and other automakers’ electric ambitions at risk. The economic crisis triggered by the pandemic has pushed the auto industry, among others, to near-collapse, emptying showrooms and shutting factories. As job losses mount, big-ticket purchases are firmly out of reach—in the U.S., where Tesla is cutting prices, more than 36 million people have filed for unemployment since mid-March. Also, the plunge in oil prices is making gasoline-powered vehicles more attractive, and some cash-strapped governments are less able to offer subsidies to promote new technologies.Even before the crisis, automakers had to contend with an extended downturn in China, the world’s biggest auto market, where about half of all passenger EVs are sold. Total auto sales in China declined the past two years amid a slowing economy, escalating trade tensions, and stricter emission regulations. EV sales are forecast to fall to 932,000 this year, down 14% from 2019, according to BloombergNEF. The drop-off is expected to stretch into a third year as China's leaders have abandoned their traditional practice of setting an annual target for economic growth, citing uncertainties. Economists surveyed by Bloomberg expect just 1.8% GDP growth this year.The global market contraction raises the prospect of casualties. French finance minister Bruno Le Maire has warned that Renault SA, an early adopter of electric cars with models like the Zoe,  could “disappear” without state aid. Even Toyota Motor Corp., a hybrid pioneer when it first introduced the Prius hatchback in 1997, is under pressure. The Japanese manufacturer expects profits to tumble to the lowest level in almost a decade.Automakers who for years have invested heavily in a shift to a high-tech future—including autonomous vehicles and other alternative energy-based forms of transportation such as hydrogen—now face a grim test. Do their pre-pandemic plans to build and sell electric cars at a profit have any chance of succeeding in a vastly changed economic climate? Even as Covid-19 has obliterated demand, for the car makers most committed to electric, there’s no turning back.“We all have a historic task to accomplish,” Thomas Ulbrich, who runs Volkswagen’s EV business, said when assembly lines restarted on April 23, “to protect the health of our employees—and at the same time get business back on track responsibly.”Volkswagen Pushes AheadGlobal EV sales will shrink this year, falling 18% to about 1.7 million units, according to BloombergNEF, although they’re likely to return to growth over the next four years, topping 6.9 million by 2024. “The general trend toward electric vehicles is set to continue, but the economic conditions of the next two to three years will be tough,” said Marcus Berret, managing director at consultancy Roland Berger.Volkswagen’s Zwickau facility became the first auto plant in Germany to resume production after a nationwide lockdown started in March. Before restarting, the company crafted a detailed list of about 100 safety measures for employees, requiring them to, among other things, wear masks and protective gear if they can’t adhere to social-distancing rules.The cautious approach has reduced capacity—50 cars per day initially rolled off the Zwickau assembly line, roughly a third of what the plant manufactured before the coronavirus crisis. (VW said Wednesday that daily output had  risen to 150 vehicles, with a plan to reach 225 next month.) Persistent software problems also have plagued development of the ID.3, one of 70 new electric models VW group is looking to bring to market in the coming years. Still, Ulbrich and VW CEO Herbert Diess over the past three months have reaffirmed Volkswagen’s commitment to electrification. “My new working week starts together with Thomas Ulbrich at the wheel of a Volkswagen ID.3 - our most important project to meet the European CO2-targets in 2020 and 2021,” Diess wrote in a post on LinkedIn in April. “We are fighting hard to keep our timeline for the launches to come.”Diess has described the ID.3 as “an electric car for the people that will move electric mobility from niche to mainstream.” Pre-Covid, the company had anticipated that 2020 would be the year it would prove its massive investments and years of planning for electric and hybrid models would start to pay off.A more pressing worry that could hamper VW’s ability to scale up production is its existing inventory of unsold vehicles. The cars need to move to make room for new releases, but sales are down as consumers are tightening their spending. One response has been to offer improved financing in Germany, including optional rate protection should buyers lose their jobs. VW also has adopted new sales strategies first used by its Chinese operations, such as delivering disinfected cars to customer homes for test drives, and expanding online commerce.Other German automakers are similarly pushing ahead with EV plans. Daimler AG is sticking to a plan to flank an electric SUV with a battery-powered van and a compact later this year. BMW AG plans to introduce the SUV-size iNEXT in 2021 as well as the i4, a sedan seeking to challenge Tesla’s best-selling Model 3.A potential obstacle for all these companies—apart from still patchy charging infrastructure in many markets—is the availability of batteries. Supply bottlenecks appear inevitable given that the number of electric car projects across the industry outstrip global battery production capacity. And boosting cell manufacturing is a complicated task.China's (Weakened) EV Dominance For VW and others, the first big test of EVs’ appeal in a Covid-19 world will come in China. Diess has referred to China as “the engine of success for Volkswagen AG.” VW group deliveries returned to growth year-on-year last month in China, while all other major markets declined.Not long ago, China appeared to be leading the world toward an electric future. As part of President Xi Jinping’s goal to make the country an industrial superpower by 2025, the government implemented policies that would boost sales of EVs and help domestic automakers become globally competitive, not just in electric passenger cars but buses, too.With the outbreak seemingly under control in much of the country, China is seeing some buyers return to the showrooms, but demand for passenger cars is likely to fall for the third year in a row, putting startups like NIO Inc.  at risk and hurting more-established players like Warren Buffett-backed BYD Co., which suffered from a 40% year-on-year vehicle sales decline in the first four months of 2020.The Chinese auto market may shrink as much as 25% this year, according to the China Association of Automobile Manufacturers, which before the pandemic had been expecting a 2% decline. EV sales fell by more than one-third in the second half of 2019.NIO, the Shanghai-based startup that raised about $1 billion from a New York Stock Exchange initial public offering in 2018 but lost more than 11 billion yuan ($1.5 billion) last year, was thrown a much-needed lifeline when a group of investors, including a local government in China’s Anhui Province, offered 7 billion yuan last month.Other Chinese manufacturers are counting on support from the government, too, including tax breaks and an extension to 2022 of subsidies, originally scheduled to end this year, to make EVs more affordable.For now, the government will also look to help makers of internal combustion engine vehicles, at least during the worst of the crisis, said Jing Yang, director of corporate research in Shanghai with Fitch Ratings. But, she said, “over the medium-to-long term, the focus will still be on the EV side.”America is Tesla CountryCompanies can’t count on that same level of support from President Donald Trump in the U.S., where consumers who love their SUVs and pickup trucks have largely steered clear of electric vehicles other than Tesla’s.The U.S. lags China and Europe in promoting the production and sale of EVs, and that gap may widen now that Americans can buy gas for less than $2 a gallon.“When you’re digging out of this crisis, you’re not going to try to do that with unprofitable and low-volume products, which are EVs,” said Kevin Tynan, a senior analyst with Bloomberg Intelligence.Weeks after announcing plans to launch EVs for each of its brands, General Motors Co. delayed the unveiling of the Cadillac Lyriq EV originally planned for April. Then on April 29, the company said it would put off the scheduled May introduction of a new Hummer EV. The models are part of CEO Mary Barra’s strategy to spend $20 billion on electrification and autonomous driving by 2025, to try to close the gap with Tesla.In another move aimed at winning over Tesla buyers, Ford Motor Co. unveiled its electric Mustang Mach-E last November at a splashy event ahead of the Los Angeles Auto Show. The highly anticipated model had been scheduled to debut this year. Ford has not officially postponed the release, but the company has said all launches will be delayed by about two months, potentially pushing the Mach-E into 2021.Elon Musk, whose cars dominate the U.S. electric market, cut prices by thousands of dollars overnight. The Model 3 is now $2,000 cheaper, starting at $37,990. The Model S and Model X each dropped $5,000.Musk engaged in a high-profile fight with California officials this month over Tesla’s factory in Fremont, California, which had been closed by shutdown orders Musk slammed as “fascist.”  In a May 11 tweet, he said the company was reopening the plant in defiance of county policy. On May 16, Tesla told employees it had received official approval.During most of the shutdown in California, the company managed to keep producing some cars thanks to better relations with local officials regulating its other factory, in Shanghai. That plant closed as the virus spread from Wuhan in late January, but the local government helped it reopen a few weeks later in early February.First Zwickau, Then the WorldThe ID.3’s new electric underpinning, dubbed MEB, is key to VW’s strategy to sell battery-powered cars on a global scale at prices that will be competitive with similar combustion-engine vehicles. Automakers typically rely on such platforms to achieve economies of scale and, ultimately, profits. MEB will be applied to purely electric vehicles across all of the company’s mass-market brands, including Skoda and Seat.VW said it spent $7 billion developing MEB after Ford last year agreed to use the technology for one of its European models. Separately, the group’s Audi and Porsche brands are built on a dedicated EV platform for luxury cars that the company says will be vital in narrowing the gap with Tesla.VW plans to escalate its electric-car push by adding two factories, near Shanghai and Shenzhen, that it says could eventually roll out 600,000 cars annually, more cars than Tesla delivered globally last year.While China is the initial goal, making a dent in Europe and the U.S. is the long-term one. Like China, Europe had been tightening emissions regulations significantly before the pandemic. New rules to reduce fleet emissions will gradually start to take effect this year, effectively forcing most manufacturers to sell plug-in hybrids and purely electric cars to avoid steep fines.Because of the mandates, Europe’s commitment to electrification isn’t going away, said Aakash Arora, a managing director with Boston Consulting Group. “In the long term, we don’t see any relaxation in regulation,” he said.For VW, this crisis wouldn’t be the first time it started a new chapter in difficult times. Diess saw an opportunity coming off the manufacturer’s years-long diesel emissions scandal that cost the company more than $33 billion to win approval for the industry’s most aggressive push into EVs. When VW unveiled the ID.3, officials compared its historic role to the iconic Beetle and the Golf, not knowing that this might hold in unintended ways: The Beetle arose from the ashes of World War II, and the Golf was greeted by the oil-price shock in the 1970s.“We have a clear commitment to become CO2 neutral by 2050,” VW strategy chief Michael Jost said, “and there is no alternative to our electric-car strategy to achieve this.”(Updates with Tesla price cut starting in the third paragraph. An earlier version corrected the spelling of Berret in the ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    Renault and Nissan rebuild their alliance to ride out the coronavirus storm

    When Renault SA, Nissan Motor Co and Mitsubishi Motors Corp announced the last strategy plan for their Alliance in September 2017, the goal was to become the world's biggest automaker by 2022. On Wednesday, the Alliance partners will outline a new plan with a less lofty objective: survival. The three carmakers are reeling from the coronavirus pandemic which engulfed them just as they were trying to rework their partnership after the arrest in 2018 and subsequent ouster of its chairman and chief architect, Carlos Ghosn.

  • Daimler to invest in Chinese EV battery maker Farasis' $480 million IPO: sources

    Daimler to invest in Chinese EV battery maker Farasis' $480 million IPO: sources

    Daimler AG plans to invest in Farasis Energy's planned $480 million IPO, aiming to ensure a stable supply of batteries from the Chinese firm as it ramps up electric vehicle production, three people familiar with the matter said. The two firms struck a deal last year for Farasis to supply Daimler with lithium-ion battery cells and Farasis is building a factory in Germany. Daimler and Farasis declined to comment on the potential IPO investment.

  • Reuters

    Toyota, Nissan and Honda gear up for Mexico reboot after COVID-19 lockdowns

    Japanese automakers Toyota, Nissan and Honda said they are gradually restarting in Mexico as the nation's automotive industry reboots in line with a broader economic reopening, despite still-high numbers of new coronavirus cases. Mexican officials in mid-May said the automotive industry could exit the coronavirus lockdown before June 1 if approved safety measures were in place. Toyota Motor Corp and Nissan Motor Co Ltd told Reuters on Monday that they were preparing to gradually resume operations, and Honda Motor Co Ltd last Friday said it had begun a gradual return to operations.

  • China's Geely to explore deeper cooperation with Daimler: chairman

    China's Geely to explore deeper cooperation with Daimler: chairman

    China's Geely will explore the possibility of deeper cooperation with German luxury automaker Daimler AG <DAIGn.DE>, its Chairman Li Shufu said on Friday. Geely built a 9.69% stake in Stuttgart-based Daimler in 2018. Geely would also "launch several new products and services to our markets around the world" this year, Li said in a statement to Reuters.

  • Class 8 Orders Went Negative In April

    Class 8 Orders Went Negative In April

    April already was the worst month for Class 8 truck orders in a quarter-century. A late pullback of 10,000 bookings by one manufacturer dropped the month into negative territory with little improvement expected in May and no significant recovery until 2022.That was the conclusion of industry experts Tuesday at the 13th annual Wolfe Research Global Transportation & Industrials Conference conducted online because of the coronavirus pandemic.Tepid projectionsACT Research lowered its estimates for heavy-duty trucks five times in March before settling on a 2020 prediction of 117,000 units. It started at 225,000 trucks, well below 2019's record production of 345,000 trucks.The current ACT production estimate for 2021 calls for 191,000 units because so many orders will be deferred. "There are a lot of young trucks out there," said Kenny Vieth, ACT president and senior analyst. "The private fleets are swimming in capacity."With practically no new truck production in March and April because of stay-at-home orders, bloated inventories are falling as a smattering of business resumes.The removal of 10,000 units from expected production in the next 12-14 months took April's anemic orders of 4,300 closer to a negative 6,000, Vieth said. If the orders come back into the system, they won't count as new orders."Arguably, you could have made the case that instead of 2,800 cancellations, there should have been 12,800 cancellations," Vieth said, adding that May to August typically is the industry's weakest order period.Daimler downtimeDaimler Trucks North America (DTNA), the industry leader in on-highway truck sales, tried to resume U.S. production earlier in May but supply chain issues prevented the restart, said Brian Cota, vice president of sales for the Freightliner brand. The lack of progress against COVID-19 in Mexico is keeping Daimler plants there shuttered."We're waiting for the Mexican government to give the green light to go back to work," Cota said. "The hope is with the supply chain that we can get things started again June 1."Lost production in March and April combined with an expected 30% drop in production in 2020 means DTNA production could fall more than 40% below 2019, Cota said.Daimler has seen fewer order cancellations than it expected, but a significant number of orders scheduled for April delivery are being pushed out as far as August."I would expect [May] to be similar to April from an order intake perspective," Cota said. "I think it's a function of building confidence. We're just not quite there yet. We've still got to get the country turned on."Retail retrenchmentSales to retail customers are showing small signs of improvement, said William "Rusty" Rush, CEO of Rush Enterprises, the nation's largest network of new truck dealerships."In the last 10 days, there's been some slight uptake," he said. "I can look at miles driven for 100,000 trucks for the last four months by week and [see] how it's slightly come back, 8% to 10%, But a week does not make a trend line. We'll continue to see flickers."Rush said the longer-term effects of the pandemic, such as delinquencies and bankruptcies, are not yet visible."You don't realize how many extensions and deferrals have been done on payments," he said. "You might be in double-digit delinquencies right now if you didn't have some of these extensions and deferrals across the board with financial institutions that have been going on with people in trouble."So far, late loan and lease payments are running 3% to 5%. Rush expected them to be 10% or higher. The number of financial institutions working behind the scenes to help people is unknown, he said."If we get a second wave of this thing and shut down again, look out," Rush said. "There would be some tough decisions made."Photo: Jim Allen, FreightwavesSee more from Benzinga * Samsara Lays Off 18% Of Workforce * Intermodal Volumes Will Take Months To Improve, Panel Predicts * Today's Pickup: More Trucks Continue To Cross US-Canada Border(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • The Zacks Analyst Blog Highlights: Daimler AG, Tesla, Toyota, General Motors and Fiat Chrysler

    The Zacks Analyst Blog Highlights: Daimler AG, Tesla, Toyota, General Motors and Fiat Chrysler

    The Zacks Analyst Blog Highlights: Daimler AG, Tesla, Toyota, General Motors and Fiat Chrysler

  • Bosch's lifesaving ESC made its debut on the Mercedes-Benz S-Class 25 years ago

    Bosch's lifesaving ESC made its debut on the Mercedes-Benz S-Class 25 years ago

    Bosch introduced its first electronic stability control system (ESC) in 1995 after spending over a decade designing the technology. It was 1983 when Bosch engineers began examining ways to prevent a car from skidding out of control. Mercedes-Benz parent company Daimler carried out similar research during the second half of the 1980s, and it joined forces with Bosch — one of its historic partners — in 1992.

  • Reuters

    REFILE-Germany's builders prop up economy as it slides into recession

    As workers across Germany downed tools during the coronavirus crisis and the economy slipped into recession, Berlin-based K. Rogge Spezialbau kept its builders busy at work. The specialist in interiors and facade renovations is one of Germany's many construction firms that has kept the nation moving even when much of Europe's biggest economy ground to a halt. "Our company and the construction sector in general are definitely doing far better in this coronavirus crisis than companies in other sectors," said Klaus-Dieter Mueller, a managing partner at the firm which employs 170 people.

  • Reuters

    RPT-An easing of coronavirus prevention measures helps China's auto plants rev up

    YUYAO, China/SHANGHAI, May 19 (Reuters) - In the eastern Chinese city of Yuyao, a group of five face-masked workers at a Geely auto plant, stood almost shoulder to shoulder behind an SUV as they conducted paint and other quality checks. China's daily new coronavirus cases have recently dropped to single digits. The most significant rule to be relaxed - in line with an easing of guidelines by local governments - has been the requirement that production line workers stand at least 1 metre apart.

  • Reuters

    An easing of coronavirus prevention measures helps China's auto plants rev up

    YUYAO, China/SHANGHAI, May 19 (Reuters) - In the eastern Chinese city of Yuyao, a group of five face-masked workers at a Geely auto plant, stood almost shoulder to shoulder behind an SUV as they conducted paint and other quality checks. China's daily new coronavirus cases have recently dropped to single digits. The most significant rule to be relaxed - in line with an easing of guidelines by local governments - has been the requirement that production line workers stand at least 1 metre apart.

  • Reuters

    Electric car sales in Europe jump, but still just 4% of market

    Registrations of electric cars in Europe jumped 57.4% in the first quarter of 2020, but still only accounted for 4.3% of total registrations, auto industry data showed on Tuesday, as carmakers struggle to meet tough new anti-pollution rules. Overall sales of passenger cars in the European Union, United Kingdom and countries of the European Free Trade Association (EFTA) fell by 52.9% in the same period, when many showrooms were closed due to lockdowns to contain the coronavirus pandemic, the ACEA auto association said. Of the 3,054,703 new cars registered in the first three months of the year, 52% were petrol powered and 28% were diesel, the ACEA data showed.

  • Tesla Model 3 sales in China drop 64% in April: CPCA
    Yahoo Finance Video

    Tesla Model 3 sales in China drop 64% in April: CPCA

    According to the China Passenger Car Association, Tesla only sold 3,635 Model 3 vehicles in China last month, down 64% from sales in March. Yahoo Finance’s Emily McCormick joins Seana Smith to discuss.

  • Musk Emerges as Loudest Reopen Proponent With Tesla Threats

    Musk Emerges as Loudest Reopen Proponent With Tesla Threats

    (Bloomberg) -- Tesla Inc. asserts that restarting its operations in the midst of the coronavirus pandemic doesn’t make the company an outlier, nor is it going against the grain.But its chief executive officer’s handling of the health crisis has been anything but ordinary. Tesla sued the county blocking its car plant from reopening, with Elon Musk calling the local health officer -- a former infectious diseases professor with a master’s degree in public health -- “unelected & ignorant.” He threatened to move Tesla’s headquarters out of California, warning that all its manufacturing may leave the state, too.The weekend flare-up was without precedent in the three months since the first confirmed Covid-19 death in the U.S. -- a resident of Santa Clara County, home to Tesla’s headquarters and neighbor to its factory in Fremont, California. As the nation’s death toll approaches 80,000, Musk has emerged as arguably the loudest voice in corporate America advocating for the economy to reopen.“I’m not messing around,” the 48-year-old billionaire tweeted after Tesla filed its lawsuit against Alameda County. “Absurd & medically irrational behavior in violation of constitutional civil liberties, moreover by *unelected* county officials with no accountability, needs to stop.”Tesla shares fell 2.7% as of 7:20 a.m. Monday in New York, before the start of regular trading. The stock has soared 96% this year.Auto RestartTesla does have a case to make for being unexceptional within the auto industry. Ford Motor Co., Fiat Chrysler Automobiles NV, Toyota Motor Corp. and others also have set dates for restarting their operations, only to then call off those plans due to shutdown orders.Daimler AG has reopened a Mercedes-Benz plant in Alabama, as has its German peer BMW AG in South Carolina. Toyota and Honda Motor Co. will resume work at U.S. factories this week, followed by General Motors Co., Ford and Fiat Chrysler on May 18.But no carmaker other than Tesla has publicly attacked local health officials or threatened states over shelter-in-place measures that virtually wiped out North American vehicle production for more than a month.Read more: What you need to know about the U.S. auto industry’s restartDuring GM’s first-quarter earnings call on May 6, CEO Mary Barra said the automaker was having “very constructive” conversations with government officials.“We’re in a good position as we talk to country leaders and state leaders,” she said. “We’ll continue to have dialogue with our unions, as well as with the government leaders, to do the right thing.”Bay Area ExceptionTesla’s handling of the health crisis also has been unique among companies in the San Francisco Bay area. Ajay Shah, the CEO of Smart Global Holdings Inc., last month credited Alameda for allowing the manufacturer of memory modules to continue operating.“We’ve had discussions with the Alameda County health authorities and show them exactly what we’re doing and they’ve been satisfied with it,” Shah said on an April 7 earnings call.Earlier: Tesla’s drive to stay open irked officials who saw health riskFaceboook Inc. CEO Mark Zuckerberg, whose staff can more easily work from home than Musk’s manufacturing employees, has voiced his concern about lifting stay-home measures too soon.“While there are massive societal costs from the current shelter in place restrictions, I worry that reopening certain places too quickly before infection rates have been reduced to very minimal levels will almost guarantee future outbreaks and worse longer-term health and economic outcomes,” Zuckerberg said during Facebook’s April 29 earnings call.Back to WorkOn the same day, Musk called shutdown orders “fascist” and unconstitutional, likening them to forcible imprisonment and saying they were “breaking people’s freedoms in ways that are horrible and wrong.” His comments were embraced by some Silicon Valley venture capitalists and political conservatives.Tesla released a 38-page “Return to Work Playbook” late Saturday laying out the safety protocols it will adopt at all of its facilities. While the company will disinfect work areas, enforce social-distancing precautions and provide personal-protective equipment, among other measures, the document doesn’t include any plans to test workers other than by checking their temperatures.Alameda officials have said more testing needs to come online and that Covid-19 case counts need to drop before they’ll feel comfortable moving to the next phase of reopening.Tesla has signaled it may disregard Alameda’s order, saying in a blog post Saturday that it had “started the process of resuming operations.” Several Fremont workers shared text messages with Bloomberg News in which supervisors were calling them back to the factory.“Our employees are excited to get back to work, and we’re doing so with their health and safety in mind,” the company said.(Updates with pre-market trading in the fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    RPT-FOCUS-As U.S. auto supply chain revs up, worker safety fears linger in Mexico

    Workers at a Lear Corp autoparts plant in northern Mexico that saw the worst known coronavirus outbreak of any factory in the Americas are now bracing to be sent back to work. For many, it's an agonizing bind after the outbreak at Lear's Rio Bravo plant that Lear said has killed 18 employees. Part of a wider international supply chain crucial to the U.S. auto sector, they are also aware that pressures from beyond Mexico may factor into the timetable.

  • Reuters

    China's Geely reports 2% rise in April sales as market rebounds

    China's Geely Automobile Holdings Ltd said on Wednesday that it sold 105,468 vehicles in April, 2% higher than the same period last year, as world's biggest auto market recovers from the coronavirus. As global auto industry hit hard by the coronavirus epidemic, China has become one ray of hope for automakers including Volkswagen and General Motors. Geely said in March that 2020 may be one of its toughest years yet, as pressure stemming from the coronavirus outbreak on production and sales persists, but it planned to go ahead with global expansion.

  • Reuters

    FOCUS-As U.S. auto supply chain revs up, worker safety fears linger in Mexico

    For many, it's an agonizing bind after the outbreak at Lear's Rio Bravo plant that Lear said has killed 18 employees. Part of a wider international supply chain crucial to the U.S. auto sector, they are also aware that pressures from beyond Mexico may factor into the timetable. "When the United States opens the automotive industry, we have to go back," said Dagoberto Galindo, 42, one of ten Lear employees at the Rio Bravo industrial park Reuters has interviewed since mid-April.

  • Reuters

    Climate in German auto sector slumps ahead of crunch Merkel meeting

    The business climate in Germany's auto sector suffered its biggest slump and hit its lowest level in April since 1991, when the Ifo economic institute began collecting data post-reunification, a survey showed on Monday. The news came ahead of a conference call that Chancellor Angela Merkel will hold with representatives of the German auto industry on Tuesday to discuss the impact of the coronavirus pandemic on production and sales. "We have never seen such bad figures for this key sector," said Klaus Wohlrabe, head of forecasting at Ifo.

  • Reuters

    GLOBAL MARKETS-Asian stocks set to track U.S. gains as virus treatment hopes lift confidence

    Asian equity markets were poised to gain on Thursday, tracking Wall Street's rally after positive trial results of an experimental COVID-19 treatment, a U.S. Federal Reserve pledge to shore up the economy and a jump in oil prices. A top U.S. health official said Gilead Sciences Inc's antiviral drug remdesivir is likely to become the standard of care for COVID-19 after early results from a clinical trial showed it helped certain patients recover more quickly. "The markets were up on expectation of the Gilead drug meeting the clinical end point, more regional re-opening in the U.S., and backstopping by the Fed after the chairman said that it will be overly accommodative," said Thomas Hayes, chairman of Green Hill Capital.

  • Daimler Says It Is Well Financed To Weather COVID-19

    Daimler Says It Is Well Financed To Weather COVID-19

    Daimler AG (OTCMKTS: DDAIF) has enough cash and credit access to wait out uncertainties beyond an expected loss-making second quarter, but executives won't predict the length or depth of the COVID-19 pandemic's impact on the car and truck business.The parent company of Daimler Trucks AG and its Daimler Trucks North America subsidiary said truck sales fell by 20% to 92,500 vehicles in the first quarter compared to 115,900 in the first quarter of 2019."The greater-than-planned volume drop in Q1 as an effect of COVID hit us hard," Ola Källenius, Daimler chairman and CEO, told analysts on a conference call Wednesday. Commercial vehicle customers are canceling or delaying taking delivery on new trucks."It will be a difficult quarter in Q2, but I feel we have made the right decisions so far and are well placed to weather this storm," Källenius said. "If revenues are going to remain depressed for a protracted period, we may need to intensify our efforts."Daimler cut spending across the board but remains committed to future technologies, including hydrogen fuel cells. Daimler plans to form a 50-50 joint venture company with rival Volvo AB (OTCMKTS: VLVLY) to develop large-scale fuel cell production for heavy-duty trucks and other uses.First-quarter resultsDaimler, also the parent of Mercedes-Benz cars and vans, sold 644,300 vehicles in the first three months of the year compared to 773,800 in the same period a year ago, the Stuttgart, Germany-based automaker said Wednesday,First-quarter revenue was €37.2 billion ($40.4 billion) compared to €39.7 billion ($43.1 billion) a year ago. Net profit in the quarter was €168 million, 85% below the €2,149 million reported a year ago. Earnings before interest and taxes (EBIT) were €617 million, 78% below the €2,798 million in last year's first quarter.Adjusted industrial free cash flow was minus €1.9 billion in the quarter. Daimler expects that to continue in the current quarter, which ends June 30.Daimler said last Thursday it expects 2020 unit sales, revenue and EBIT to trail 2019 levels. The company's cash position grew to nearly €68 billion with a new €12 billion line of credit."Our financial flexibility mitigates risks and volatility through a balanced mix of funding instruments," Chief Financial Officer Harald Wilhelm told analysts.Nascent China recoveryDaimler is seeing strong demand in China, where it has slowly restarted production following the easing of the county's lockdown. Supply chains are "remarkably robust," Källenius said."If the markets turn back up again, we are ready to ramp up and capture opportunities," he said. "I don't want to be overly confident, but if and when it comes, we're ready to go."Daimler's manufacturing flexibility allows it to adjust from a single shift to two and ultimately three shifts as needed. The Chinese workforce is showing great adaptability in handling distancing, mask-wearing and other worker protection requirements. "It is a little bit different than what you're used to, where you didn't have any restrictions, but what we can see from China so far is remarkable,"  Källenius said. "That's why I don't see it as a big threat against our ability to produce the volume that we need this year."See more from Benzinga * Saia's Q1 Outperformance Not Overshadowed By Bleak Near-Term * Norfolk Southern Anticipates Some Cost Cuts As Permanent * Freight Futures Daily Curve: 4/29(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • VW, Daimler foresee profits despite crisis
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    VW, Daimler foresee profits despite crisis

    The world’s big carmakers have taken a beating as lockdowns shuttered plants and dealerships. But Wednesday (April 29) saw two of Europe’s heavyweights offer some hope. After a tough few months, Volkswagen says it still expects to be in profit for the full year. Earlier this month the group said that sales were down by 23%, with operating profit down by four-fifths. But the German giant this week restarted some production, marking the event with an image of its logo munching the coronavirus. Wednesday’s comments suggest it does see light at the end of the tunnel. Meanwhile Daimler says it expects a rise in full-year profits for its key Mercedes-Benz brand. Though that is a bit of a technicality, with last year’s numbers weighed down by hefty one-off charges. Analysts also cheered news that it hadn’t yet seen any spike in defaults by customers who bought cars on finance deals. The firm is sticking to its dividend plans, and says it doesn’t need any state-backed loans. The news from the automakers was among the positives on a mixed day for stocks. Daimler shares were up over 2 percent in early trade, with VW up around 1%. Both strongly outpaced the broader market.

  • Reuters

    European shares inch lower as healthcare stocks drag

    European shares slipped on Wednesday as a slide in healthcare stocks outweighed upbeat earnings outlook from German automakers and sensor specialist AMS as well as a bounce in oil prices. The pan-European STOXX 600 was down 0.12% by 0723 GMT and blue-chips dropped 0.4% as shares in drugmakers Roche and Novartis dragged. Shares in BP, Total and Royal Dutch Sell gained between 1.7% and 2.6% as crude prices rose on the back of lower-than-expected rise in U.S. stockpiles.

  • Daimler sees profits at Mercedes-Benz Cars rising in 2020

    Daimler sees profits at Mercedes-Benz Cars rising in 2020

    Daimler said it expected the full-year operating profit of its Mercedes-Benz Cars & Vans division to be above the prior-year level but warned that the coronavirus pandemic will push the group to an operating loss in the second quarter. Anticipating a higher rate of defaults among customers, the carmaker hiked risk provisions for delinquencies among customers who leased or bought Mercedes-Benz cars to 448 million euros($486.71 million), even as default rates have not yet started to spike. "There is nothing cheering in the auto numbers we have seen so far across the industry but Daimler seems to have had a decent start to Q1 and managed working capital better than we had feared," Jefferies analyst Philippe Houchois said.

  • Daimler Revenue, Profit Drops As Coronavirus Slows Auto Sales

    Daimler Revenue, Profit Drops As Coronavirus Slows Auto Sales

    (Bloomberg) -- Daimler AG said sales and operating profit slumped in the first quarter as the maker of Mercedes-Benz luxury cars was laid low by the coronavirus. Sales declined 6% to 37.2 billion euros ($40.4 billion) in the first three months of the year as the number of vehicles sold dropped 17% to 644,300. Daimler reiterated that full-year earnings before interest and taxes will be below last year, without being more specific.Key InsightsDaimler is among carmakers that has shuttered factories and car dealerships from the U.S. to China, with Ford Motor Co. forecasting a more than $5 billion second-quarter operating loss on Tuesday. Plants are now starting to reopen, as governments grapple with how to safely lift society lockdowns.After closing factories in March to preserve cash and manage costs, Daimler has now “started with a gradual ramp-up” of production, Chief Executive Officer Ola Kaellenius said in a statement.Chief Financial Officer Harald Wilhelm said on April 8 the crisis could help accelerate overhaul efforts to save 1.4 billion euros in labor costs by 2022. The plans include slashing costs to revive margins that were already squeezed before the virus crisis escalated.Daimler mapped out plans last year to eliminate more than 10,000 jobs worldwide in an effort to cut costs and invest in electrification.Market ReactionDaimler shares have lost 38% since the beginning of the year, about in line with the STOXX 600 Automobiles & Parts Index.Get MoreFull statement breakdown here.The proposed 2019 dividend of about 1 billion euros “remains at risk,” Bloomberg Intelligence analyst Michael Dean said in a report. Daimler didn’t mention the dividend in its statement.Fitch Ratings downgraded Daimler’s long-term issuer default rating to BBB+ from A- this month, citing a deteriorating financial profile and assuming a potential recovery will be slowRelated: VW, Daimler Map Out Plans to Revive Factory OutputFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Daimler reports first-quarter 2020 results
    PR Newswire

    Daimler reports first-quarter 2020 results

    Group unit sales of 644,300 vehicles (Q1 2019: 773,800)