The owner of Mercedes-Benz has warned of a major slump in profits this year after recalls, legal issues and weak demand for new cars contributed to a rough second quarter.
Daimler (DDAIF) said Friday that it expects a second quarter loss of €1.6 billion ($1.8 billion), a dramatic decline from €2.6 billion ($2.9 billion) profit in the same period a year earlier.
It said full year earnings will be significantly below the €11.1 billion ($12.5 billion) profit achieved in 2018.
In addition to those factors, Daimler said its full year performance will be affected by slow product rollouts and weak growth in automotive markets.
The Mercedes-Benz vans business is in particularly poor shape. Daimler said Friday that the division would make a loss of €2 billion ($2.3 billion) in the second quarter.
Shares in Daimler were trading 1.7% lower in Frankfurt following the announcement.