Daimler: Electro mobility investments to weigh on finances
Berlin – The board of German carmaker Daimler said at an annual meeting on Thursday that the shift to electro mobility – propelled in part by the diesel emissions scandal – will weigh on its finances in the coming years.
“More electronic cars are good in terms of CO2 output, but not so good for our company’s finances, temporarily at least,” said chairman Dieter Zetsche at the gathering in Berlin.
“There is no doubt that we – as carmakers – are responsible for striking a balance between individual mobility, climate protection and air pollution control,” he added.
In order to pay for the development of electric cars, Daimler has introduced an efficiency programme designed to save the company 4 billion euros (4.9 billion dollars) in the next five years.
Frank Lindenberg, Daimler’s chief financial officer, said that shareholders would also have to expect lower dividends while the company adjusts to market demand.
Shareholder representatives said ahead of the meeting they would seek further clarification from the board on the ongoing diesel scandal and its fallout.
US judicial authorities and the public prosecutor in the south-western German city of Stuttgart, where Daimler is headquartered, are investigating the company for manipulating diesel emissions tests to circumvent environmental regulations.
Daimler was one of a group of German car manufacturers funding emissions testing on monkeys and humans which scandalized Germany earlier in the year.
It faces the possibility of driving bans for its diesel vehicles in several German cities who are seeking to combat serious air pollution.
Daimler is cooperating with authorities on accusations that it and other German carmakers belonged to a secret cartel that collaborated on emission controls, standards, technology, costs and suppliers for years.
Another talking point at Thursday’s meeting could be Chinese carmaker Geely founder Li Shufu, who snapped up 10 per cent of Daimler’s shares in a surprise move in February, and how his participation could affect its plans for restructuring.
In 2017, revenues at Daimler rose 7 per cent year on year to 164.3 billion euros (204.5 billion dollars) and net profits were up 23 per cent to 10.5 billion euros.
The carmaker sold 3.3 million vehicles last year, marking a 9-per-cent year-on-year increase.
The dividend that will be paid out this year, namley 3.9 billion euros, is 400 million euros more than in 2017.
Source: (dpa)
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