Diesel scandal at Daimler Mercedes-Benz

[Sdf4786k]

https://edition.cnn.com/2019/06/23/business/daimler-earnings-expectations/index.html

 

New York (CNN Business)Daimler, the German auto company that makes Mercedes-Benz, has slashed its 2019 profit expectations by hundreds of millions of euros. The financial downgrade, announced Sunday, is the latest fallout from the diesel emissions scandal that has rocked the German auto industry.

 

The company said that "various ongoing governmental proceedings and measures relating to diesel vehicles" will affect the company's second quarter earnings. It said it expects an increase in expenses related to those proceedings.

Daimler said its profit for 2019 will be close to last year's level.

Shares in the carmaker declined 3.6% in Frankfurt on Monday. The stock has dropped nearly 20% from a recent high in April.

German automakers have faced years of scrutiny regarding harmful emissions that diesel vehicles produce. That scrutiny stems from a 2015 admission by another German automaker — Volkswagen (VLKAF) — that it rigged millions of diesel engines to cheat on emissions tests.

The revelation trashed confidence among consumers and regulators in diesel technology and cost Volkswagen tens of billions of dollars in recalls, legal penalties and settlements.

 

******

 

Lets see if there is a large an outcry from merc owners.

 

Will the resale value drop and what will the second hand car dealer use.

Merc no resale value. Buyer dont want to be associated with a brand with low integrity ? 

Edited June 25, 2019 by Sdf4786k

[Ct3833]

https://edition.cnn.com/2019/06/23/business/daimler-earnings-expectations/index.html

 

New York (CNN Business)Daimler, the German auto company that makes Mercedes-Benz, has slashed its 2019 profit expectations by hundreds of millions of euros. The financial downgrade, announced Sunday, is the latest fallout from the diesel emissions scandal that has rocked the German auto industry.

 

The company said that "various ongoing governmental proceedings and measures relating to diesel vehicles" will affect the company's second quarter earnings. It said it expects an increase in expenses related to those proceedings.

Daimler said its profit for 2019 will be close to last year's level.

Shares in the carmaker declined 3.6% in Frankfurt on Monday. The stock has dropped nearly 20% from a recent high in April.

German automakers have faced years of scrutiny regarding harmful emissions that diesel vehicles produce. That scrutiny stems from a 2015 admission by another German automaker â Volkswagen (VLKAF) â that it rigged millions of diesel engines to cheat on emissions tests.

The revelation trashed confidence among consumers and regulators in diesel technology and cost Volkswagen tens of billions of dollars in recalls, legal penalties and settlements.

 

******

 

Lets see if there is a large an outcry from merc owners.

 

Will the resale value drop and what will the second hand car dealer use.

Merc no resale value. Buyer dont want to be associated with a brand with low integrity ?

I dont think there are a lot of diesel Mercedes in SGP other than bus, lorry and van.

So this diesel scandals looks like a monkey do monkey follow thing in the Europe.

Edited June 25, 2019 by Ct3833

[Sdf4786k]

I dont think there are a lot of diesel Mercedes in SGP other than bus, lorry and van.

So this diesel scandals looks like a monkey do monkey follow thing in the Europe.

 

merc taxi ?

 

A class diesel?

 

Of course if you claim that its made in india and no count, I can totally accept as well.

 

I am more of the opinion that if there is a scandal, will there be a price drop just to meet the numbers?

 

https://www.cnbc.com/2019/06/24/mercedes-parent-company-stock-tumbles-as-diesel-scandals-cut-profit.html

 

Daimler’s stock drops as diesel scandal cuts profit for Mercedes’ parent company

 

Edited June 25, 2019 by Sdf4786k

[Watwheels]

So anyone has asked the most important questions yet?

 

Have COE prices crash because of this?

Merc got big discount coming or not?

 

This badge is so desireable here who the f cares about what diesel scandal.

[Ct3833]

merc taxi ?

 

A class diesel?

 

Of course if you claim that its made in india and no count, I can totally accept as well.

 

I am more of the opinion that if there is a scandal, will there be a price drop just to meet the numbers?

 

https://www.cnbc.com/2019/06/24/mercedes-parent-company-stock-tumbles-as-diesel-scandals-cut-profit.html

Daimlerâs stock drops as diesel scandal cuts profit for Mercedesâ parent company

You are right, I missed out the taxi. Sure people will make noise but after a while people will move on, look at VW, Audi and even Porsche, life goes on.

 

It is too early to speculate whether they did the same as VW, but the outlook cant be good as they have prepared for writedown.

From the technology point of view, looks like diesel engine is not as clean as what the european auto industry have projected, not sure if that is the reason the Japnese auto makers are slow or not keen in making diesel engine car ? Any expert to shed some lights ?

The extent of Daimler's problem may not be as big if what the CEO claims about writing down high 3 digit million euro is true, comparatively, the problem has so far hit VW close to 30 billion euro, the sum is world of difference.

Edited June 25, 2019 by Ct3833

[Carbon82]

VW has a different set of problems actually. First, the diesel gate affects more brands (Audi, Porsche, and others under VAG), and some of which are bread and butter model, so the reach and impact is far wider in comparison to Mercedes Benz.

 

Next, the diesel gate is yet another blow to VW, after the DSG issue that affects mostly bread and butter model (think about revenue and profit).

 

And after VW, Renault, Mitsubishi, PA group, etc. were either founds to have falsified emissions and consumption data, or under investigation by the respective authorities, so market somehow has "gotten used to it". In fact some consumers even come to term that the existing stringent emissions standards is not viable, at least with the current engine technology.

 

So I believe the latest diesel gate would not affect Mercedes much, especially it's resale value. Just like COE, there will always be people queuing for it. If price were to drop by a mere few %, the next in line would grab and go.

 

So no durian to pick for aspired owner.

[Sdf4786k]

I guess its about the same stuff like the local pollution.

 

Be it bread talk pollute the environment or not. As long as the fine is paid, the deed is done.

Lets move on.

 

So there really is no incentive to live up to the integrity or saving the earth. 

 

Save so much. NK test one weapon, reset the carbon emission savings by a few years that everyone globally participated in.

 

As long as there is no financial gains or lost, no one is really bothered.

 

If thats the case, buying diamler shares now would be a really good idea?

 

[Atachi]

I guess its about the same stuff like the local pollution.

 

Be it bread talk pollute the environment or not. As long as the fine is paid, the deed is done.

Lets move on.

 

So there really is no incentive to live up to the integrity or saving the earth. 

 

Save so much. NK test one weapon, reset the carbon emission savings by a few years that everyone globally participated in.

 

As long as there is no financial gains or lost, no one is really bothered.

 

If thats the case, buying diamler shares now would be a really good idea?

 

 

So true. All these "green" talk with among the countries, in the end whose still the biggest culprit?