Profits fell by 29 per cent year-on-year to 7.25 billion euros (8.25 billion dollars), the group announced on Wednesday from its headquarters in
Thanks to the lorry business,
At the company’s annual general meeting in May, he hands over the reins after 13 years to the head of development, Ola Kaellenius.
Looking ahead, Zetsche announced unspecified “countermeasures” in its car division. “We are busy working out this programme,” he said.
Major changes are afoot in the company. In May, shareholders will decide on the new structure, in which cars lorries and mobility services will be brought together into a holding company as legally independent units.
Last year, several factors weighed on the carmaker’s earnings.
In addition to the trade dispute between
The new exhaust and consumer standard, the Worldwide Harmonized Light Vehicle Test Procedure (WLTP), meant that not all models could immediately be brought to market.
In 2019, sales and operating profit are expected to rise slightly.
“We cannot and will not be satisfied with that,” Zetsche said. “That’s why we started to work out comprehensive countermeasures.”
Apart from the continuing debate over diesel engines and clean air, Zetsche predicted further difficulties ahead from the trade conflict between the US and
There would be consequences for the company from a hard Brexit, Zetsche said.
Predictions this year are for a slight rise in sales and operating profit, while investment is continue at a high level. The company is participating in Volocopter, which will launch trials for its flying vehicles this year.
As a result of the reduced profits, the bonus paid to its 130,000 full-time German workers will be cut to 4,965 euros this year from 5,700 last year. The company employs some 300,000 workers worldwide.
(c)2019 Deutsche Presse-Agentur GmbH (Hamburg, Germany)
Visit Deutsche Presse-Agentur GmbH (Hamburg, Germany) at www.dpa.de/English.82.0.html
Distributed by Tribune Content Agency, LLC.