The automaker, which recorded a net loss of 2 billion francs between April and June, is now counting on an economic recovery.
Daimler claims to see the first signs of a sales recovery.
KEYSTONE
Daimler, manufacturer of Mercedes-Benz, detailed its annual forecast on Thursday, now expecting a “positive” operating result for 2020, beyond the decline already announced, while the coronavirus has plunged it into the red in the second trimester.
The automaker, which recorded a net loss of 1.9 billion euros (2.0 billion francs) for the period from April to June, formulates these forecasts “on the assumption that the economic recovery continues in second half and that there is no new major wave of infections in the main markets, ”he explains in a press release.
20,000 jobs lost?
“We are seeing early signs of a recovery in sales,” said boss Ola Källenius. He says he is “decided” to continue the savings while the group plans thousands of job cuts. The press mentions 20,000 jobs, but Daimler has not yet released a figure.
The manufacturer unveiled preliminary figures last Thursday, including an operating loss of 1.68 billion euros in 2Q and a cash flow – a data widely observed in the midst of the crisis – positive over the period, contrary to expectations analysts.
Apart from a loss in the second quarter of last year, due to provisions relating to the scandal of rigged diesel engines, the last quarterly loss of the manufacturer dates back to 2009, in the midst of the financial crisis.
Strong decline in sales
In the first quarter of 2020, net profit fell 92% to just 168 million euros. Auto sales collapsed in March in major European markets, after a similar drop in Asia.
In addition to a sluggish market, operating income was weighed down by € 687 million in restructuring charges in the production network, including the sale of the French Smart factory in Hambach, in Moselle.
The British group Ineos has expressed interest in buying the Moselle site to produce its future 4X4 Grenadier there, but the inter-union (CGT, CFE-CGC, CFTC, CFDT and FO) – not convinced by the arrival of a thermal vehicle at the factory which has only produced electric models since 2019 – calls for a strike and a demonstration on Friday in Sarreguemines.
Daimler also has 53 million euros in charges for the automotive industry related to “legal proceedings”, while the group remains mired in the scandal of fake diesel engines.
(ATS / NXP)
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