European carmarker shares fell sharply today after Mercedes-Benz owner Daimler issued a profit warning.
Daimler said its profits would be affected by new Chinese tariffs imposed on US imports.
Daimlers own shares dropped by 4.5% to €57.95 following the announcement, while BMW shares fell by 3.1% and Peugeot dropped by 2.4%. VW’s shares dropped by 2.8%, while Fiat Chrysler shares fell by 3%.
A statement from Daimler said: “From today's perspective, the decisive factor is that, at Mercedes-Benz Cars, fewer than expected SUV sales and higher than expected costs - not completely passed on to the customers - must be assumed because of increased import tariffs for US vehicles into the Chinese market.
“This effect cannot be fully compensated by the reallocation of vehicles to other markets.”
Daimler said the new certification process WLTP (Worldwide Harmonized Light Vehicles Test Procedure would also have a negative effect on earnings in the second half of this year.
The statement said: “Furthermore, earnings at Mercedes-Benz Vans are affected in connection with the recall of diesel vehicles. Additionally, earnings at Daimler Buses are negatively affected by the declining demand in Latin America.”