BERLIN: German luxury carmaker Daimler on Friday warned of risks for the economy and its own business from the outbreak of coronavirus that is spreading in China and around the world. “Risks for the Daimler Group may not only affect the development of unit sales, but may also lead to significant adverse effects on production, the procurement market and the supply chain,” the Stuttgart-based company said in its annual report. It also noted that the epidemic posed a risk for economic growth in China, other Asian countries and worldwide.
Daimler CEO Ola Kaellenius announced last week that its key Mercedes-Benz brand had restarted production of luxury passenger cars in Beijing, adding it was still too early to gauge the impact of the coronavirus on Daimler’s business. Daimler also said stricter anti-pollution tests have made it harder to comply with new rules and increased provisions for regulatory proceedings, liability and litigation risks to 4.9 billion euros, up from 2.1 billion euros in 2018. — Reuters
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