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Automaker Daimler loses $1.3 billion on diesel, air bag woes

Posted at 10:58 PM, Jul 23, 2019
and last updated 2019-07-24 01:58:35-04

FRANKFURT, Germany (AP) — Daimler AG, maker of Mercedes-Benz cars, says it lost 1.2 billion euros ($1.3 billion) in the second quarter as the company saw 4.2 billion euros in one-time charges for troubles with diesel cars and air bag recalls.

The quarterly loss reported Wednesday was the company’s first since 2009 and a bumpy start for new CEO Ola Kallenius, who took over from Dieter Zetsche on May 22 and since then has had to issue two profit warnings.

The company is under investigation in Germany and the U.S. and faces U.S. civil lawsuits in connection with its cars’ diesel emissions. It also is facing expenses for recalling cars with faulty air bags from supplier Takata, losses suffered by other automakers, too.

The company said it expected “significant improvement” in the second half.