DAimler : Estimates €0.34B worth of charges related to recalls of vehicles impacted by Takata air bags; affirms outlook
(NHTSA) has notified Daimler AG that it has been informed that certain airbag models from the manufacturer Takata, which are also installed in Mercedes-Benz cars and Daimler vans, are potentially defective. On the basis of available information on the components, Daimler AG has decided to recall approximately 705,000 Mercedes-Benz cars and about 136,000 Daimler vans in the United States. The expense for this precautionary recall is estimated at a total of about €340 million.
The estimated costs will be recognized as a provision in financial year 2015. Therefore net profit will decrease to €8.7B (2014: €7.3B) and Group EBIT to €13.2B (2014: €10.8B). EBIT from ongoing business remains unchanged at €13.8B (2014: €10.1B).