Mercedes-Benz parent company Daimler says it will “review” its product portfolio and implement more cost-cutting measures after posting a loss in the second quarter of 2019.
In a statement, Daimler confirmed its total unit sales in the second quarter of the year declined by one percent to 822 000 passenger and commercial vehicles. Although revenue was up at €42,7-billion, earnings before interest and taxes came in at minus €1,6-billion.
“Our second-quarter results were mainly impacted by exceptional items of €4,2-billion. Therefore, our focus for the second half of this year is on improving our operating performance and cash-flow generation,” said Ola Källenius, chairman of the board of management of Daimler AG and head of Mercedes-Benz Cars.
“In general, we are intensifying the group-wide performance programmes and reviewing our product portfolio in order to safeguard future success. At the same time, we are continuing consistently our company transformation,” Källenius added.
According to Automotive News Europe, the second-quarter loss was triggered by “legal risks for diesel-related issues and the cost of replacing Takata airbags”.
The news comes after earlier reports suggested the seemingly slow-selling Mercedes-Benz X-Class would be axed as Daimler sought to cut costs. The German firm’s Australian arm later said it would not comment on “speculation” about the reported impending demise of the bakkie.
Ryan has spent most of his career in online media, writing about everything from sport to politics and other forms of crime. But his true passion – reignited by a 1971 Austin Mini Mk3 still tucked lifeless in a dark corner of his garage – is of the automotive variety.