DAI.DE - Daimler AG

XETRA - XETRA Delayed price. Currency in EUR
46.69
-0.19 (-0.39%)
At close: 5:35PM CET
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Previous close46.88
Open47.33
Bid46.69 x 124500
Ask46.70 x 73800
Day's range46.66 - 47.51
52-week range40.31 - 60.00
Volume3,811,872
Avg. volume3,884,580
Market cap49.949B
Beta (5Y monthly)1.56
PE ratio (TTM)12.35
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yield3.25 (6.93%)
Ex-dividend date23 May 2019
1y target estN/A
  • Daimler CEO Says Auto Industry Is in Transformation
    Bloomberg

    Daimler CEO Says Auto Industry Is in Transformation

    Jan.08 -- Daimler Chief Executive Officer Ola Kaellenius discusses expanding in China and partnering with BMW. He speaks with Bloomberg's Christoph Rauwald from CES in Las Vegas.

  • Daimler Unveils 'Avatar-Inspired' Electric Car
    Bloomberg

    Daimler Unveils 'Avatar-Inspired' Electric Car

    Jan.07 -- Daimler AG Chief Executive Officer Ola Kallenius unveiled a flashy concept vehicle inspired by one of the most expensive Hollywood blockbusters ever made. The Mercedes-Benz AVTR, is named after the environmentally-conscious sci-fi film Avatar. Oscar-winning director James Cameron joined Kallenius on stage at CES in Las Vegas.

  • Reuters - UK Focus

    Motor racing-Mercedes to debut 2020 F1 car on Valentine's Day

    Formula One world champions Mercedes have scheduled a Valentine's Day debut for the car Lewis Hamilton would love to take him to a seventh title this season. The team said in a statement on Friday that an initial shakedown run will take place in private at Silverstone circuit on Feb. 14. Mercedes have won both the driver's and constructor's championships for the past six years but could face a tougher challenge from Ferrari and Red Bull in a season without major changes.

  • Inside Tesla’s Attack on Germany’s Auto Establishment
    Bloomberg

    Inside Tesla’s Attack on Germany’s Auto Establishment

    (Bloomberg) -- German rangers stand guard to shoo away visitors from a nondescript stretch of forest near Berlin, where a sign nearby warns of “Lebensgefahr” (mortal danger).The precautions are part of the frantic activity underway to set up Tesla Inc.’s latest assembly plant, Elon Musk’s most daring attack on the German auto establishment. Workers wielding metal detectors have started combing through an area covering some 200 football fields to search for errant ammunition lurking beneath the sandy surface of tiny Gruenheide.It’s the first stage to prepare a site that could churn out as many as 500,000 cars a year, employ 12,000 people and pose a serious challenge to Volkswagen AG, Daimler AG and BMW AG. Once deemed free of World War II explosives, harvesters and trucks will roll in to clear thousands of trees in the first stage of development. The work needs to be done by the end of February to meet Tesla’s aggressive timetable. The project represents a second chance for the quiet town, nestled between two lakes on the edge of a nature reserve southeast of Berlin.Gruenheide lost out on a similar factory two decades ago, when BMW opted for Leipzig. That missed opportunity helped town officials to move quickly when Tesla expressed interest in building its first European factory in Germany, with a plot set aside for industrial use and offering easy access to the Autobahn and rail lines.Read More: Elon Musk’s German Factory Started With Love Letter From Berlin“The investment is a unique opportunity,” Mayor Arne Christiani said in his office, where a map of the Tesla project hangs on the wall. “It gives young people with a good education or a university degree the possibility to stay in our region—an option that didn’t exist in past years.”If it clears Germany’s red tape, the plant will make batteries, powertrains and vehicles, including the Model Y crossover, the Model 3 sedan and any future cars, according to company filings. The factory hall will include a pressing plant, paint shop and seat manufacturing in a building that will be 744 meters (2,440 feet) long—nearly triple the length of the Titanic. There’s space for four such facilities.Musk is taking his fight for the future of transport into the heartland of the combustion engine, where the established players long laughed off Tesla as an upstart on feeble financial footing that couldn’t compete with their rich engineering heritage. He casually dropped the news at an awards ceremony in Berlin in November, leaving the top brass of Germany’s car industry shell-shocked.“Elon Musk is going where his strongest competitors are, right into the heart of the global auto industry,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. “No other foreign carmaker has done that in decades given Germany’s high wages, powerful unions and high taxes.”Building a factory in Europe’s largest car market is a major test of Musk’s global ambitions. Demand in the region is flat, and buyers are more loyal to local brands. Meanwhile, labor costs in Germany’s auto sector are 50% higher than in the U.S. and five times what they are in Poland, just an hour’s drive away from Gruenheide.Gruenheide TimelineEnd February: Finish tree logging before migrant birds nest March 5: Deadline for comments from nearby residents March 18: Public meeting to discuss the project Mid-2020: Construction expected to begin July 2021: Targeted start of productionOn the positive side, electric cars require less labor to build, and Germany has a deep reserve of auto experts. The location also offers the soft-power advantage of proximity to the country’s leaders.Under pressure for being slow to pick up on the electric-car shift, Chancellor Angela Merkel’s government extended a welcoming hand to Musk. Economy Minister Peter Altmaier offered to try to ease regulatory hurdles that may snag construction. “There’s a lot at stake” in Tesla’s plan, he said soon after the project was announced.Musk’s incursion comes at a strategically opportune time. Riding a wave of optimism after successfully starting deliveries of its China-built Model 3 sedans a year after breaking ground on a factory there, Tesla’s stock has doubled in the past three months.Meanwhile, German peers are struggling with the costly shift away from combustion engines. Volkswagen and Mercedes-Benz parent Daimler announced thousands of job cuts last year, when German car production fell to its lowest level in almost a quarter of a century. For Gruenheide, the planned investment has suddenly transformed the town of 8,700 people into a sought-after location. Local officials receive development proposals on a daily basis: anything from 22-story apartment towers to U.S.-style shopping malls, said Christiani, who hopes the plant will help unlock financing for public transport, schools and medical facilities.In the town hall, five thick binders are available for locals to peruse the project’s details, including 463 trucks expected to roll into the plant each day, a rail spur for train deliveries and an on-site fire brigade.Tesla still has to jump through a number of hoops. Residents have the chance to raise objections, and some have bemoaned that they’ve seen little from the company since its blockbuster announcement. Meanwhile, the local water utility warned it won’t be able to supply the site in time and raised concerns over its location in a zone meant to help protect drinking water supplies.And then the company has to carry out initiatives to protect wildlife—including scaring off any wolves in the area, relocating hibernating bats and removing lizards and snakes until construction is finished. The U.S. carmaker also has to replace felled trees.The mayor expects these hurdles to be cleared so that the first made-in-Gruenheide Teslas can roll out in July 2021.“The forest is classified as a harvest-ready, inferior pine forest,” Christiani said. “It was never supposed to be a rain forest.”—With assistance from Hayley Warren  (Adds criticism from water utility in 17th paragraph.)To contact the author of this story: Stefan Nicola in Berlin at snicola2@bloomberg.netTo contact the editor responsible for this story: Chris Reiter at creiter2@bloomberg.net, Craig TrudellChad ThomasFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Toyota Makes a New $394 Million Bet on Flying Taxis
    Bloomberg

    Toyota Makes a New $394 Million Bet on Flying Taxis

    (Bloomberg) -- Toyota Motor Corp. is making a $394 million investment in Joby Aviation, one of the handful of companies with the seemingly implausible goal of making electric air taxis that shuttle people over gridlocked highways and city streets.Toyota is the lead investor in Joby’s $590 million Series C funding, alongside Baillie Gifford and Global Oryx and prior backers Intel Capital, Capricorn Investment Group, JetBlue Technology Ventures, SPARX Group and its own investment arm, Toyota AI Ventures. The deal, for now, makes the Santa Cruz, California-based Joby the best-funded “eVTOL” (electric vertical take-off and landing) startup in a booming category that must overcome significant regulatory hurdles and concerns about passenger safety and noise, bringing the total money it has raised to $720 million.“Air transportation has been a long-term goal for Toyota, and while we continue our work in the automobile business, this agreement sets our sights to the sky,” said Toyota President and Chief Executive Officer Akio Toyoda. “As we take up the challenge of air transportation together with Joby, an innovator in the emerging eVTOL space, we tap the potential to revolutionize future transportation and life.”Over the past year, the 82-year Japanese automaker has deepened its interests in futuristic transportation technologies. Last year it backed Recogni Inc., a Silicon Valley maker of autonomous vehicle systems, and May Mobility, an Ann Arbor, Michigan-based operator of self-driving shuttle buses. At CES earlier this month, Toyota announced its intention to build a 175-acre community, or  “Woven City”, at the base of Mount Fuji to serve as a showcase for self-driving cars and other innovations in transportation.Joby is an emerging player in a field of air-taxi companies that includes Airbus SE; South Korean automaker Hyundai, which recently announced plans to design and produce an air taxi with Uber Technologies Inc.; and Kitty Hawk, the brainchild of Alphabet co-founder Larry Page, which is developing an air taxi in conjunction with Boeing Co. Volocopter, a startup in Germany, is backed by Zhejiang Geely Holding Group Co., the biggest investor in Mercedes-Benz maker Daimler AG and owner of Swedish manufacturer Volvo and British automaker Lotus.In addition to announcing the funding, Joby released an image of its prototype aircraft. The vehicle, which looks like an oversized toy drone, sports six electric propellers and is capable of flying 150 miles on a single charge, at speeds of up to 200 miles per hour, the company said. It’s designed to carry four passengers and a pilot, an approach that differs from that of rivals such as Kitty Hawk, whose two-seat “Cora” vehicle is intended to fly autonomously, without an onboard pilot.Joby says it will manufacture prototypes at a facility in Marina, California, near Monterey, but plans to tap Toyota’s famous manufacturing prowess to build “highly reliable complex hardware at increased scale,” said Paul Sciarra, Joby’s executive chairman and a co-founder of Pinterest.In December, Joby and Uber announced a separate partnership to jointly introduce Joby air taxis in at least two cities, with customers booking and paying for flights via the Uber app.The most pressing challenge for Joby, which now has around 400 employees, is obtaining certification from the Federal Aviation Authority and other regulatory agencies around the world. Joby says this is a three- to five-year process that it formally began in 2018.Over the past few years, both the FAA and the European Union Aviation Safety Agency (EASA) have moved to support commercial development of air taxis and released special guidelines to regulate small aircraft, with rules that differ from those governing conventional helicopters and fixed-wing airplanes. Much work remains, said Robin Lineberger, head of the Aerospace & Defense practice at Deloitte, including creating a system to manage municipal airspace in both normal and poor weather conditions and building physical infrastructure such as mini-airports that can support frequent takeoffs, landings and aircraft recharging.“The 2023 to 2025 time frame is fairly straightforward” for small demonstrations, Lineberger said. But he looks to 2035 “as a practical date for having a ubiquitous operational fleet in the thousands—not the hundreds—with a well-established framework for regulatory approval.”Sciarra and Joeben Bevirt, Joby’s founder and CEO, say they’ve spent significant time with Toyoda in Toyota City, Japan, as well as with other Toyota executives at Joby’s headquarters on a windy, 500-acre ranch in the hills north of Santa Cruz. They would not say whether they offered them a ride on the prototype aircraft, but Bevirt said: “They’re a loyal and tenacious company and this has been a dream of the Toyoda family for a very long time.”To contact the author of this story: Brad Stone in San Francisco at bstone12@bloomberg.netTo contact the editor responsible for this story: Dimitra Kessenides at dkessenides1@bloomberg.netFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Switch to electric cars 'could kill 400,000 jobs' in Germany
    Yahoo Finance UK

    Switch to electric cars 'could kill 400,000 jobs' in Germany

    Car industry head describes estimate produced by a study as 'extreme' and 'unrealistic' as it is due to be presented to the German government.

  • Aston Martin Is a Binge Too Far for China’s Geely
    Bloomberg

    Aston Martin Is a Binge Too Far for China’s Geely

    (Bloomberg Opinion) -- Timing is everything in investing, a refrain the ambitious Li Shufu might want to heed.The Geely Group has held preliminary talks about a possible investment in Aston Martin Lagonda Global Holdings Plc, the high-end but encumbered British carmaker of James Bond fame. Billionaire Lawrence Stroll, owner of the Racing Point Formula One team, is also among the investors looking to pump in fresh capital. At first blush, this isn’t surprising. Struggling to dent the world market with Geely Automobile Holdings Ltd.’s(1) own vehicles, the Chinese auto executive has developed a modus operandi of appearing to ascend the value chain by picking up marquee brands, financially precarious though they may be. Through his holding company Zhejiang Geely Holding Group, Li splashed out $9 billion to build a 9.7% stake in Mercedes Benz-maker Daimler AG in 2018. Zhejiang Geely owns or has stakes in Volvo AB, Lotus Cars, Malaysia’s Proton Holdings Bhd and even a flying car company, Terrafugia Inc., either directly or through its subsidiaries.Li is trying to stay ahead of the expensive technology curve. Earlier this month, Geely set up a joint venture with Daimler to make the electric version of Smart cars in China. The company has an electric vehicle battery joint venture with South Korea’s LG Chem Ltd. Geely has also used Volvo Car Group in a joint venture to subsidize Lynk  & Co., a more upmarket version of Geely’s homegrown brands that’s so far sold primarily in China.So, Aston Martin seems to fits in. But this time, Li has more to consider: business at home. Geely Auto sold 1.36 million cars last year, posting $2.8 billion in profit for the 12 months to June 30, but the Chinese market is struggling to find a footing. Retail car sales tumbled more than 7% in 2019, with production down 9.5%. All told, sales in the world’s largest car market are shrinking and the competition to survive is getting stiffer.  The outlook is grim. While new car buyers accounted for two-thirds of sales over the last five years, the next five will likely be driven by replacement demand, Goldman Sachs Group Inc. forecasts. To keep up with upgrading consumers, most automakers, including Geely, are rolling out new models of multi-purpose vehicles (the category that lies between SUVs and family vans).  Sure, Geely is investing in a future of  electric cars, but the costs for mass adoption remain high. Geely has done better through the downturn by maintaining a fine balance between production, sales and inventory. But it has had to slash sales targets, moving further away from its goal of selling 2 million vehicles by 2020. While Lynk sales volumes rose, net profit fell. Research and development costs continue to climb. Geely remains exposed to lower-tier cities, where demand has cratered.Vanity buying is best saved for more upbeat times. Investing in Aston Martin will be a cash sink, premium brand or not. Low as the price may be, a stake won’t add value to Li’s auto portfolio any time soon given its debt burden and a struggling core business. The Geely group should have other priorities, especially its finances. Debt at Zhejiang Geely totaled 136 billion yuan ($19 billion) at the end of September 2019, up from 92 billion yuan a year earlier. Previous stake purchases have come with leverage. To buy Daimler, for instance, Geely took to using complex derivatives. Its ratio of net debt to earnings before interest, tax, depreciation and amortization rose to 1.4 times in 2018 from 0.6 times in 2017, according to S&P Global Intelligence, because it took on a fair amount of debt to fund the acquisition of its 8% stake in Volvo AB. The credit rater estimated that the leverage ratio could rise further on lower sales and shrinking margins. Meanwhile, the parent actively supports various operations at subsidiaries.Geely may find the slow lane is best for now. (1) 44.1% owned by Zhejiang Geely Holding Co.To contact the author of this story: Anjani Trivedi at atrivedi39@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Mercedes-Benz to build smart brand cars with Geely in China's Xi'an: senior executive
    Reuters

    Mercedes-Benz to build smart brand cars with Geely in China's Xi'an: senior executive

    BEIJING/SHANGHAI (Reuters) - Mercedes-Benz will build smart-branded electric cars with Zhejiang Geely Holding Group in the Chinese city of Xian from a base with annual capacity of around 150,000 vehicles, a senior official from its German parent Daimler AG said on Saturday. Daimler's Executive Vice President in China Leng Yan made the comments to Reuters on the sidelines of China's EV100 forum in Beijing, an annual event where senior auto industry executives meet to discuss policies and the market. Geely and Mercedes-Benz said on Wednesday they would each invest 2.7 billion yuan ($388.8 million) in a China-based venture to build "premium and intelligent electrified" vehicles under the Smart brand.

  • Mercedes-Benz to build smart brand cars with Geely in China's Xi'an: senior exec
    Reuters

    Mercedes-Benz to build smart brand cars with Geely in China's Xi'an: senior exec

    BEIJING/SHANGHAI (Reuters) - Mercedes-Benz will build smart-branded electric cars with Zhejiang Geely Holding Group [GEELY.UL] in the Chinese city of Xian from a base with annual capacity of around 150,000 vehicles, a senior official from its German parent Daimler AG said on Saturday. Daimler's Executive Vice President in China Leng Yan made the comments to Reuters on the sidelines of China's EV100 forum in Beijing, an annual event where senior auto industry executives meet to discuss policies and the market. Geely and Mercedes-Benz said on Wednesday they would each invest 2.7 billion yuan ($388.8 million) in a China-based venture to build "premium and intelligent electrified" vehicles under the Smart brand.

  • Reuters

    China's Geely in talks to take stake in Aston Martin

    The Chinese group is conducting due diligence on the 107-year-old UK business, the cars of which are the drive of choice for fictional British secret agent James Bond, the FT reported, citing four people familiar with the discussions. News of Geely's interest comes a month after Aston Martin confirmed it was in early talks with potential investors as it launched a review of its funding.

  • Reuters

    Soaring SUV sales keep carmakers on collision course with climate policy

    Soaring demand for SUVs drove record sales for premium carmakers including BMW and Mercedes last year, leaving the industry on collision course with government efforts to tackle global warming despite big investments in electric vehicles. BMW said on Friday deliveries by its main luxury brand rose 2% to a record 2,168,516 vehicles last year, thanks to a 21% jump in sales of its "X" branded sport-utility vehicles (SUV) which now make up 44% of the BMW brand's global sales. At Mercedes-Benz, the world's best selling premium car brand, every third luxury car sold last year was an SUV.

  • Reuters

    BMW says it sold 2.52 million BMW, Mini and Rolls-Royce vehicles in 2019

    BMW said it sold 2.52 million BMW, Mini and Rolls-Royce vehicles in 2019, making it the best-selling premium car group, ahead of rival Daimler . Daimler said on Thursday it had sold 2.34 million Mercedes-Benz passenger cars in 2019 for a ninth consecutive year of record sales.. BMW said its BMW brand posted a sales record of 2.17 million vehicles in 2019.

  • Mercedes-Benz poised to clinch premium sales crown for 2019
    Reuters

    Mercedes-Benz poised to clinch premium sales crown for 2019

    Daimler sold 2.34 million Mercedes-Benz passenger cars in 2019 for a ninth consecutive year of record sales, it said on Thursday, putting the German carmaker in pole position to retain the title of biggest-selling premium car brand. Stuttgart-based Daimler claimed it had retained the title of best-selling luxury car brand. As a carmaking group, BMW sold 2.52 million vehicles last year to beat Daimler's 2.46 million Mercedes-Benz and Smart vehicles over the same period.

  • Geely, Mercedes-Benz launch $780 million JV to make electric smart-branded cars
    Reuters

    Geely, Mercedes-Benz launch $780 million JV to make electric smart-branded cars

    BEIJING/SHANGHAI (Reuters) - Zhejiang Geely Holding Group Co Ltd [GEELY.UL] and Mercedes-Benz on Wednesday said they would each invest 2.7 billion yuan (295.98 million pounds) in a China-based venture to build "premium and intelligent electrified" vehicles under the smart brand. The 50:50 venture has received regulatory approval and will be based in the Chinese coastal city of Ningbo, the Chinese and German automakers said in a statement. Like Mercedes-Benz, smart is a Daimler AG marque.

  • Daimler Pledges That Cost Cuts Today Will Fund the Cars of Tomorrow
    Bloomberg

    Daimler Pledges That Cost Cuts Today Will Fund the Cars of Tomorrow

    (Bloomberg) -- Daimler AG’s investment in future technologies such as electric cars and self-driving software is taking a bite out of its traditional automobile business.Ola Kallenius, the German automaker’s chief executive officer, told reporters at the Consumer Electronics Show in Las Vegas that he’s looking to trim costs across Daimler’s sprawling industrial operations to free up cash that will fund new technologies for the cars of tomorrow.“The financial performance has to be there. Otherwise the other things won’t happen,” Kallenius said. “It’s going to be a rather tough time” in coming years, he said.Daimler mapped out a plan last year to eliminate more than 10,000 jobs worldwide and revive profit margins squeezed by heavy investments. It got shareholder approval to fold its car, commercial-truck and mobility-services operations into separate legal entities to make them more nimble. The personnel cuts -- equal to at least 3.3% of the workforce -- will be carried out by the end of 2022 with a goal of lowering costs by 1.4 billion euros ($1.5 billion).Daimler shares fell 0.6% in early trade in Frankfurt on Wednesday. The world’s top producer of luxury and commercial vehicles set the scene for the cutbacks two months ago when Kallenius warned investors returns may remain depressed for the next two years. A target for 2020 of at least 4% operating return on sales at the main Mercedes-Benz car unit disappointed investors, coming in at about half of what French mass-market peer PSA Group generated in the first half of last year.“The capital intensity is very high at the moment and customers are increasingly willing to pay for new technology,” Kallenius said. “But not yet the full price.”(Updates with share price in fifth paragraph)To contact the reporter on this story: Christoph Rauwald in Frankfurt at crauwald@bloomberg.netTo contact the editors responsible for this story: Chester Dawson at cdawson54@bloomberg.net, David Welch, John BowkerFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Tesla Opens Chinese Plant as Era of Real Competition Begins
    Bloomberg

    Tesla Opens Chinese Plant as Era of Real Competition Begins

    (Bloomberg) -- Elon Musk was apparently excited enough about Tesla Inc.’s prospects in China that he was moved to dance, sending the electric-car maker’s shares to new highs.The chief executive officer awkwardly waltzed across a stage at Tesla’s new factory outside of Shanghai on Tuesday during an event to hand over the first Model 3 sedans to public buyers. Musk, 48, also elaborated on previously announced plans to produce the upcoming Model Y crossover at the plant.“Ultimately, Model Y will have more demand than probably all of the other cars of Tesla combined,” Musk said, reiterating a prediction made during the company’s last earnings call. He said Tesla will reveal more in the future about advanced manufacturing technologies the company is applying to Model Y.Tesla shares rose 3.9% to close at a record $469.06 on Tuesday. The stock has surged 84% since Oct. 23, when the company reported a surprise profit and said the Model Y will launch this summer, months ahead of schedule. Its market capitalization is approaching General Motors Co. and Ford Motor Co.’s combined.The kickoff of Model 3 deliveries to local customers marks a major step in Musk’s global push for electric-vehicle domination and heralds what could be the dawn of real competition in the world’s largest EV market. Local production is allowing Tesla to drop prices of the car, narrowing the price premium relative to models from Chinese manufacturers NIO Inc. and Xpeng Motors, and undercutting global giants such as BMW AG and Daimler AG.Musk also said Tesla plans to open a design-and-engineering center in China so that it can eventually develop a new car there.The company named after famed inventor Nikola Tesla, who died 77 years ago today, will now need to avoid a repeat of the glitches it experienced in its original car factory in California. Tesla went through months of what Musk called “production hell” as it ramped up Model 3 production starting in 2017. After consistently falling well short of the CEO’s ambitious targets, the electric-car maker burned through billions of dollars and came within weeks of running out of money.The China plant is already assembling 1,000 cars a week and aims to double that rate over the next year, Song Gang, the manufacturing director at the facility, said on Dec. 30. The company has said it plans to ramp up production to 150,000 Model 3 vehicles a year, or about 3,000 a week, when the first phase of the factory is completed.Tesla plans to boost production capacity to 500,000 a year after the following phase, though it isn’t clear when exactly Tesla expects to achieve those goals.Charm OffensiveMusk’s charm offensive in China has paid off. Originally just a muddy plot about a 90-minute drive away from Shanghai’s city center, the China plant has quickly come online since it broke ground at the start of 2019. It took twice as long for Tesla’s Gigafactory near Reno, Nevada, to begin churning out batteries.Tesla has been winning various concessions from local authorities ranging from approvals to preferential loans — all the more notable given the trade war with the U.S.Various government officials including Mayor Ying Yong and Zhu Zhisong, deputy secretary general of the Shanghai municipal government, were among the dignitaries attending Tuesday’s event. Vice Mayor Wu Qing said at the event that no foreign company has invested in a bigger manufacturing facility in the country.The locally built Model 3 was included last month on a list of vehicles qualifying for an exemption from a 10% purchase tax in China. It also qualified for a government subsidy of 24,750 yuan ($3,560) per vehicle.Price CutsThe subsidies have helped Tesla cut prices, with the company announcing last week it would reduce the starting cost of the Model 3 by 9% to 323,800 yuan, or 299,050 yuan after incentives. Prices could go down further, as people familiar with the matter have said Tesla is considering further lowering the price of the sedans by using more local components and reduces costs.About 30% of the parts now used at the Shanghai facility are sourced locally, and Song, the manufacturing director, said on Dec. 30 that the company plans to increase that to 100% by the end of the year.Those prices put Tesla closer to some models from domestic EV makers, such as Xpeng Motor’s latest P7 sedan, which starts at 240,000 yuan. NIO’s SUVs start from 358,000 yuan, though that price doesn’t take into account subsidies.Volkswagen AG’s Audi plans to start selling nine new-energy vehicles in China during the next two years, with more than half of them being pure battery-electric models. The first electric model, the e-tron, debuted in November at a starting price of about 693,000 yuan.Daimler’s Mercedes-Benz made its EQC available in October starting at 580,000 yuan. BMW plans to start building the iX3 crossover in China next year and is working with a Chinese partner to electrify its Mini model.\--With assistance from Dana Hull.To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at czhang714@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Craig Trudell, David WelchFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Investors sue Daimler for $1bn over diesel-emissions cheating
    Yahoo Finance UK

    Investors sue Daimler for $1bn over diesel-emissions cheating

    The Mercedes-Benz parent company is still battling fallout from the 'dieselgate' scandal.

  • Daimler sued for $1 billion in German court over diesel cheating
    Reuters

    Daimler sued for $1 billion in German court over diesel cheating

    Investors have sued Daimler for 896 million euros ($1 billion) in a regional court in Stuttgart, accusing the carmaker of concealing its use of emissions cheating software, German law firm TILP said on Tuesday. The suit was filed on behalf of institutional investors who accuse Daimler of failing to inform investors about the risks and costs of using such devices, which amounts to a violation of capital markets law, the lawfirm said. Daimler said it had not yet been formally notified of the lawsuit adding it believed that the lawsuit was without merit.

  • German Car Production Drops to 23-Year Low on Waning Exports
    Bloomberg

    German Car Production Drops to 23-Year Low on Waning Exports

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.German car production fell to its lowest in almost a quarter of a century as Europe’s biggest economy suffers from the fallout of a global trade war.Automakers including Volkswagen AG, BMW AG and Daimler AG produced 4.66 million vehicles in German factories last year, the weakest since 1996. The country’s VDA car lobby, which published the figures on Monday, said the 9% decrease was a result of waning demand from international markets.The industry is set for more tough times this year. The VDA predicted global car deliveries will drop to 78.9 million vehicles from 80.1 million in 2019.Germany’s status as a global manufacturing powerhouse has been built on the carmaking industry, but pollution concerns -- intensified by Volkswagen’s 2015 diesel-cheating scandal -- trade conflicts, and slowing economies have all weighed on demand. Daimler, Volkswagen and parts supplier Continental AG are slashing jobs to cut costs.At the same time, the industry has to spend billions of euros to develop cleaner vehicles, self-driving features and counter the emergence of ride-sharing services like Uber Technologies Inc., which has a market value equivalent to Daimler.Germany is particularly exposed to regulatory demands for cleaner vehicles because brands such as BMW, Porsche and Audi focus on power and performance. That prods the country’s automakers to explore unusual projects.At the CES electronics show in Las Vegas, Daimler’s Mercedes-Benz unveiled a concept car inspired by the film Avatar. The electric-powered vehicle features lateral crab-like movement and biometric controls to allow “human and machine to merge.”Germany’s domestic autos market grew 5% last year after buyers registered 3.6 million new cars, the VDA said, the most since 2009. However, the industry body has said the market is likely to contract this year and has predicted that job losses will accelerate amid the transition to electric cars, which require fewer parts and less labor to assemble.The country cemented its recently acquired lead over Norway as Europe’s biggest electric-vehicle market after selling 63,281 e-cars last year, according to latest data from the country’s Federal Motor Transport Authority, or KBA.(Adds global forecast in third paragraph, Mercedes concept car in seventh)\--With assistance from Oliver Sachgau and Chris Reiter.To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Andrew NoëlFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Daimler, Volvo mull combustion engine cooperation: report
    Reuters

    Daimler, Volvo mull combustion engine cooperation: report

    Luxury German carmaker Daimler and Volvo Cars, owned by China's Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources. The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody. A Daimler spokesman said the company's cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further.

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