Mercedes Weathers Diesel Blow to Ease Strains of Electric Shift
- Margins hold steady as consumers turn away from diesel cars
- Development spending set for ‘signficant’ increase this year
Daimler Profit Falls on Diesel Recall Costs
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Daimler AG showed signs of weathering the car industry’s diesel crisis as Mercedes-Benz withstood a consumer and government backlash over the models’ emissions to keep earnings on track for a “significant” rise this year.
Mercedes’s return on sales was roughly on par with a year ago, excluding 453 million euros ($535 million) in one-time charges for air-bag recalls and upgrades of more than 3 million diesel vehicles to resolve concerns about pollution from the fuel. The resilient margins help ease pressure on the world’s biggest maker of luxury vehicles as it pushes ahead with a 10 billion-euro project to release 10 electric autos by 2022.