Following the news that Daimler has reported a widening Q2 loss amid sharply slower sales caused by the impact of the COVID-19 pandemic;
David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“Given the scale of the drop to sales this year, this set of results isn’t too bad – particularly in terms of steps taken to preserve liquidity and also address the cost base. The company is refocusing investments to critical projects and has moved quickly to make capacity adjustments in its global production network that will reduce fixed costs in the long-term.
“The stated aim of an operating profit this year will require further efforts to increase efficiency, but Daimler appears to be moving in the right direction in its response to the COVID-19 crisis.
“However, it also makes clear that risks to the outlook remain – particularly if a major wave of new COVID-19 infections hits its key sales markets. As vehicle markets recover from historic lows in the second half of the year, this is an ever present danger and risk for automotive companies generally.”