Daimler Warns Hard Brexit Would Hurt Even Without a U.K. Plant

  • Mercedes maker sees hit in the hundreds of millions of euros
  • CEO says EU should prepare for trade negotiations with U.S.
Photographer: Alex Kraus/Bloomberg
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Daimler AG probably will lose hundreds of millions of euros if the U.K. leaves the European Union without a trade deal, and its chief executive officer is ruling out the idea of helping Prime Minister Boris Johnson rebuild Britain’s manufacturing base.

The Mercedes-Benz maker, which doesn’t have a car plant in the country, sees a financial impact in the “low three-digit” million-euro range in the event of a hard Brexit, CEO Ola Kallenius told the Frankfurt business media club ICFW on Monday. Cars would be subject to 10% tariffs, likely hurting demand for vehicles imported from Daimler’s factories in Germany and elsewhere in Europe.