Mercedes-maker Daimler AG warns of “significant adverse effects” of virus outbreak

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Mercedes-maker Daimler AG warns of “significant adverse effects” of virus outbreak

On Friday, the 21st of February 2020, the Stuttgart-based German luxury carmaker, Daimler AG, had raised an alarming bell over potential downsides of automotive industry alongside its own business network stemmed off the fast-spreading corona virus outbreak in China and other parts of the world.

In point of face, latest comment from the German automotive industry giant, Daimler AG, the manufacturer of Mercedes-Benz, came forth as a consequential narrative of a gruelling epidemic outbreak in China, the world’s largest auto market, while a downbeat sales growth of passenger cars had added to further woes.

Meanwhile, adding that the epidemic would likely to pose significant challenges for the global automotive industry and apparently would yield a higher risk for the economic growth of China, other Asian countries alongside major global economies in North American and Europe, the German luxury car manufacturer said its annual report that release on Friday (February 21st), “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.

” Aside from that, the Stuttgart-based German automotive industry giant had also added that a much stiffer anti-pollution tests in EU and US had exposed carmakers to a harsh challenge to comply with newer carbon emission legislations, while the company reported risks of as much as €4.9 billion in liabilities and litigations from newer emission regulation, up nearly 150 per cent from €2.1 billion compared to the same time a year earlier.