Daimler Profit Falls on Diesel Recall Costs

The transcript discusses Daimler's financial performance, highlighting that despite costs from diesel and airbag recalls, investor reactions have been stable. It compares Daimler's situation with BMW and Volkswagen, noting that Daimler's recall costs are higher. The discussion also covers the challenges in the diesel market, particularly the impact on residual values and fleet sales, emphasizing the importance of maintaining diesel's cost-effectiveness for business customers.

What was the main reason investors did not react negatively to Daimler's financial results?

• Mercedes' profitability was at an all-time low.

• The costs were already anticipated and included in the numbers.

• Daimler announced a new product line.

• The diesel scandal was resolved.

How does Daimler's recall cost situation compare to BMW's?

• Daimler's recall costs are expected to be higher.

• BMW's recall costs are significantly higher.

• Both companies have similar recall costs.

• Neither company has recall costs.

What is a key factor that supports the fleet market's continued use of diesel vehicles?

• Lower cost of ownership and cheaper diesel fuel in Europe.

• Government incentives for diesel cars.

• Better performance in cold weather.

• Higher resale value of diesel cars.

What is a potential consequence if residual values of diesel cars start to fall?

• Fleet markets may move away from diesel.

• Higher maintenance costs for diesel cars.

• Stability in the diesel market.

• Increased demand for diesel cars.

What is the 'litmus test' for the future of diesel cars in the fleet market?

• Government regulations on emissions.

• Ability to drive diesel cars in major cities like Munich and Stuttgart.

• Public opinion on diesel cars.

• Introduction of electric vehicles.