Daimler’s Gloomy Outlook
Recently, German automaker Daimler AG lowered its 2018 earnings outlook in light of the newly imposed U.S. import tariffs in China and the recall of thousands of diesel-powered vans. According to Daimler, as a result of the new tariffs, it expects to see lower SUV sales along with higher costs at its Mercedes-benz car division than were previously forecast. Daimler also believes its Mercedes-benz van division earnings will be significantly hurt due to the recent recall of at least 6,000 Vito delivery vans. However, although Daimler expects to see lower full-year earnings before interest and taxes in 2018, the company stated the amount will only be slightly lower than 2017’s total.