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Daimler recalls vehicles with defective airbag models

15 Feb '16

1 min read

Daimler AG, a leading automotive company, has recalled around 7,05,000 Mercedes-Benz cars and around 1,36,000 Daimler vans in the US, after a notification from the US National Highway Traffic Safety Administration (NHTSA) about defective airbag models from the manufacturer Takata.

The expense for the precautionary recall is estimated at a total of about €340 million. The estimated costs will be recognised as a provision in financial year 2015. Therefore net profit will decrease to €8.7 billion (2014: €7.3 billion) and Group EBIT to €13.2 billion (2014: €10.8 billion). EBIT from ongoing business remains unchanged at €13.8 billion (2014: €10.1 billion), according to a press release.

Daimler AG points out that both the dividend proposal and the employees' profit participation for the successful year 2015 as well as the earnings expected for financial year 2016 remain unchanged. At the Annual Shareholders' Meeting on April 6, 2016, the Board of Management and the Supervisory Board will propose the distribution of a dividend of €3.25 per share (2014: €2.45). Daimler AG continues to assume that it will slightly increase Group EBIT from the ongoing business in 2016. (GK)

Fibre2fashion News Desk - India