Daimler's stock drops as diesel scandal cuts profit for Mercedes' parent company

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Mercedes' parent company stock tumbles as diesel scandals cut profit

fell almost 4% in intraday trading Monday after the company cut its earnings guidance, saying the ongoing diesel emissions scandal at Mercedes-Benz is going to cost more than previously thought.

The automaker said its 2019 earnings will likely be about the same as 2018 — 11.1 billion euros — after previously forecasting "slight growth in unit sales, revenue and earnings" for the year.On Friday, Germany's vehicle authority ordered the company to recall 60,000 SUVs with technology it said impermissibly reduced emission controls. Daimler said in its first-quarter earnings release that it also faces a probe of emissions matters by the U.S. Justice Department.

Daimler faces a consumer class-action lawsuit in the U.S. along with supplier Bosch, which is accused of conspiring with the automaker to deceive U.S. regulators.

 

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Diesel is old dirty tech anyway

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