--
 
WATCH: Sparks fly in thrilling King of the Hill

A new King of the Hill was crowned and saw the reign of two others extended today with a thrilling finale at #JaguarSHC.

8 fast cats score trophies at #JaguarSHC

The 10th Jaguar Simola Hillclimb was a successful affair for Team Jaguar, with a total of eight podium finishes for all eight entries across various categories.

Daimler cuts profit forecast, blaming US-China tariffs

2018-06-21 07:53

Image: AFP / Thomas Kienzle

Frankfurt am Main - German luxury carmaker Daimler on Wednesday (June 20) cut its profit forecast for 2018, blaming new tariffs on cars exported from the United States to China, amid lingering fears of a trade war between the world's biggest economies.

"Fewer than expected SUV sales and higher than expected costs - not completely passed on to the customers - must be assumed because of increased import tariffs for US vehicles into the Chinese market," the Mercedes-Benz manufacturer said in a statement.

Trade wars looming

As a result, Daimler said it now predicts its underlying or operating profit, as measured by earnings before interest and tax (EBIT), will be slightly lower than last year, instead of slightly above as it previously expected.

Last week US President Donald Trump announced 25% tariffs on $50 billion in Chinese imports, sparking trade war fears and prompting Beijing to retaliate with matching duties on American goods, including cars.

A study in April by asset managers AllianceBernstein (AB) showed that German carmakers with big US operations like Daimler would be worse hit by proposed Chinese import tariffs than American auto firms.

Daimler also warned that sales would be affected by stricter European fuel efficiency test procedures after a mass recall of some of its diesel vehicles.

Germany ordered the recall of some 774 000 Daimler vehicles across Europe last week, citing illegal "defeat devices" designed to conceal high levels of harmful emissions from regulators' tests.

NEXT ON WHEELS24X
Read more on:    daimler  |  donald trump  |  trade war

There are new stories on the homepage. Click here to see them.