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Daimler
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Daimler accused of selling over one million cars with excess emissions: newspaper
| Reuters
By Andreas Cremer, Ilona Wissenbach and Birgit Mittwollen
German carmaker Daimler has been accused of selling over a million cars with excessive emissions in Europe and the United States, Sueddeutsche Zeitung newspaper said on Wednesday, citing a search warrant issued by a Stuttgart court. -
Daimler announces new $740 million battery factory in China for Mercedes-Benz’s EVs
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By Fred Lambert
Just a few weeks after unveiling its own new battery Gigafactory for electric vehicles in Germany, Daimler is now announcing a new $740 million battery factory project in China. -
Daimler: The Best Dividend And Return Play In The Global Automobile Sector
| Seeking Alpha
By Stefan Redlich
Daimler's stock has performed poorly in 2017 being down 10% on the DAX. Fundamentally the company is very strong, and it is investing heavily in the future of automobiles while improving its profitability metrics. At the same time there is uncertainty regarding emission values. The company boasts a high dividend with a 40% payout ratio and is an attractive long-term value play in a cyclical sector. -
Daimler Uses Blockchain to Issue Bonds
Jul 12, 2017 | The Wall Street Journal
By Nina Trentmann
Daimler AG, the German car manufacturer, floated part of its €100 million ($114.1 million) German bond (Schuldschein) using blockchain technology at the end of June. The pilot project was among the first of its kind, the company said. -
German carmaker Daimler facing its own 'Dieselgate' emissions scandal
Jul 12, 2017 | DW
Daimler is alleged to have sold over a million cars in Europe and the US containing engines rigged to cheat emissions tests. German authorities raided several locations associated with the automaker back in May. -
China's FAW to recall 680,000 more Mazda cars over faulty Takata airbags
Jul 8, 2017 | South China Morning Post
China’s FAW Car Co, a partner of Japan’s Mazda Motor Corp, will recall over 680,000 Mazda cars due to issues with air bags that were supplied by embattled Japanese auto parts supplier Takata Corp. -
Is Daimler AG (DAI.DE) Ready for a Breakout?
Jul 12, 2017 | Rives Journal
Investors may be looking at some different technical levels in order to get a better grasp on the markets.
Traditional Media
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Daimler accused of selling over one million cars with excess emissions: newspaper
| Reuters
By Andreas Cremer, Ilona Wissenbach and Birgit Mittwollen
BERLIN (Reuters) - German carmaker Daimler (DAIGn.DE) has been accused of selling over a million cars with excessive emissions in Europe and the United States, Sueddeutsche Zeitung newspaper said on Wednesday, citing a search warrant issued by a Stuttgart court.
Two months ago Stuttgart prosecutors searched Daimler sites in Germany following allegations of false advertising and the possible wrongful manipulation of exhaust gas treatment systems in diesel cars.
The Stuttgart local court's search warrant triggered the searches on May 23, Sueddeutsche Zeitung said.
According to that document, more than 1 million cars with excessive emissions, including various luxury Mercedes-Benz models, were sold in Europe and the United States between 2008 and 2016, said Sueddeutsche Zeitung, which researched the matter with regional broadcasters WDR and NDR.
A spokesman for Stuttgart-based Daimler declined to comment on the continuing investigation by local prosecutors, adding the carmaker was fully cooperating with the authorities.
The cars in question are powered by engines codenamed OM 642 and OM 651, with prosecutors examining the possible use of defeat devices to manipulate emission levels during tests, the newspaper said.
There is a risk that the vehicles affected in Europe could be banned in the region, the newspaper said, again citing the search warrant.
The Daimler spokesman declined to comment on the report, describing it as "speculation", apart from saying the company did not see any danger of its cars being banned.
A spokesman for Stuttgart prosecutors declined to comment while Germany's transport ministry couldn't be reached for comment.
Carmakers across the globe have faced increased regulatory scrutiny over anti-pollution tests since Volkswagen admitted in September 2015 that it had installed secret software in its diesel cars in the United States to cheat nitrogen oxide emission tests.
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Daimler announces new $740 million battery factory in China for Mercedes-Benz’s EVs
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By Fred Lambert
Just a few weeks after unveiling its own new battery Gigafactory for electric vehicles in Germany, Daimler is now announcing a new $740 million battery factory project in China.
The new factory will support the production of batteries for electric vehicles under the Mercedes-Benz brand.
It’s the first major project as part of Daimler’s new investments in electric vehicles through its joint-venture with BAIC in China.
Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain, commented on the announcement:
“Building another premium eBattery factory is the next step in the implementation of our electric strategy. Thus, we have the first foreign location in our global battery production network. The local production of batteries is crucial in order to meet the demand for electric vehicles flexibly and efficiently,”
While Daimler is making significant investments in battery production, they are still not producing battery cells. Like the one in Germany, the new factory will produce battery modules and packs, but they will be sourcing the cells from elsewhere.
The German automaker wouldn’t confirm from which supplier, but they did say that the cells will be sourced from China.
Berenberg Bank analyst Alexander Haissl recently expressed doubts about the sourcing strategy of traditional automakers:
“Clear visibility about high-volume cell-sourcing strategies continue to elude traditional manufacturers, although we expect announcements for large facilities to eventually emerge to resolve the key issue of battery supply constraints,”
Daimler will be able to choose from several different battery cell manufacturers to supply its new factory. Several companies, like Panasonic andCATL, have been building battery cells factories in China.
Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China, also commented on the announcement:
“We are investing in the world’s largest market for Battery Electric Vehicles, By 2025, the Chinese market will have a substantial share in sales of Mercedes-Benz electric vehicles. Therefore, local production will be key to the success of our EV portfolio, and crucial to flexibly serving local demand for electric vehicles.”
They expect production at the new facility to start in 2020.
The news comes just as Tesla confirmed working with the Shanghai Government to establish its own manufacturing facility in the region.
A clear rush to invest in electric vehicles is happening in China. Tesla wants to tap into what is now the world’s biggest auto market and legacy automakers are speeding up their plans to match the country’s ZEV mandate. Automakers need zero-emission vehicles (ZEVs) to represent 8% of new car sales as soon as 2018 and quickly ramp up to 12% by 2020.
https://electrek.co/2017/07/05/daimler-battery-factory-china-mercedes-benzs-electric-cars/
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Daimler: The Best Dividend And Return Play In The Global Automobile Sector
| Seeking Alpha
By Stefan Redlich
Summary:
Daimler's stock has performed poorly in 2017 being down 10% on the DAX.
Fundamentally the company is very strong, and it is investing heavily in the future of automobiles while improving its profitability metrics.
At the same time there is uncertainty regarding emission values.
The company boasts a high dividend with a 40% payout ratio and is an attractive long-term value play in a cyclical sector.
Prior to the Q2/2017 results to be announced in mid-/end July I am reiterating my bullish opinion on Daimler (OTCPK:DDAIF) for both income and capital appreciation. The stock has been the worst performer of the German stock market (DAX) in 2017 being down 10% YTD in euro terms. Its USD-denominated ADR stock has been pretty much flat this year.
The company has seen a stellar 2016 and the most recent Q1/2017 results have been impressive as well. The market is currently overly cautious regarding Daimler's future, which I consider to present an attractive buying opportunity.
This article will only refer to the stock traded on the Frankfurt stock exchange and hence all values will be expressed in EUR (€).
What is going on at Daimler?
The stock has seen a dismal 2017 so far being down 10% YTD with the overall German market rising by more than 7%.
Source: Godmode-Trader; Daimler stock price (€)
The stock is also subsequently lagging the performance of other global car manufacturers as illustrated below:
What this shows is that apart from struggling Japanese car makers Toyota (NYSE:TM) and Honda (NYSE:HMC), Daimler stock is being outperformed by both its German competitors Volkswagen (OTCPK:VLKAF) and BMW (OTCPK:BMWYY) as well as US major car manufacturers General Motors (GM) and Ford Motor Company (F). Moreover, we can also clearly see that an investment in the stocks of the big automobile companies has not really netted any returns YTD.
With all the talk being about how Tesla (TSLA) is going to disrupt an entire industry, despite neither making any profits nor having comparable financial solidity, and its stock price reaching stratospheric heights, investors have dumped stocks of the established car manufactures on large scale.
Such a sharp sell-off always alerts me to do my due diligence on the stock in order to personally assess if this was warranted or if it indeed presents a discounted buying opportunity.
In the absence of the still upcoming Q2/2017 figures let's review the Q1/2017 results, today's release of US unit sales current concerns surrounding the stock.
Daimler reported record Q1/2017 earnings with an EBIT of €4bn compared to €2.1bn the year before. Despite benefiting from various special effects, most notably +€183m from a revaluing of the company's stake in Here, +€240m from updated fair value estimates of Daimler's stake in BAIC Motor and +€267m from disposing real estate at Mitsubishi Fuso Trucks and Bus Corporation, the business has been growing strongly and also topped analyst estimates. Across the board, return on sales metrics increased - from 7% to 9.8% for Mercedes-Benz Cars, from 6.3% to 8.4% for Trucks and +1.2% for Vans.
For May 2017 the company reported YoY growth of 13.5% in global car sales (China alone grew by more than 30%). For June 2017 Daimler just reported record sales in the United States which grew 1.8% vs. a year ago.
The company is only paying out around 40% of net earnings for its dividend so far and is currently boasting a dividend yield around 5%.
Despite these impressive financial results and its secure dividend, investors are punishing the stock as they are worried about the future.
Currently, we can identify two major uncertainties surrounding the stock:
1) Accusations of manipulating car emission values
In May the company shocked investors when news broke that German investigators have been extensively searching various sites of the company for evidence of manipulating emission values. Although so far no evidence has been found, this large-scale police raid is definitely concerning, and with the outcome being entirely unclear, despite the company cooperating with authorities, this uncertainty drags down the stock.
2) The end of the combustion engine
So while a manipulation of emission values may cost the company dearly (Volkswagen has already been fined for more than EUR 20 billion so far) and jeopardize its dividend it would not pose a going-concern risk.
This second major uncertainty, however, has much more disruptive potential. As a result the company is investing heavily into the future of the automobile in areas such as car connectivity and autonomous vehicles and has recently wholeheartedly acknowledged the danger Tesla presents. In an effort to combat this threat, Daimler is accelerating its $10 billion investment in electric vehicles, which aims at launching 10 new electric car models by the year 2022.
Source: Future Truck 2025: The first self-driving truck by Mercedes-Benz
Investor takeaway
Uncertainty regarding how the future of global car manufacturers may look like has pushed investors to dump stocks in the entire automobile sector apart from Tesla. Daimler has been hit particularly hard here and currently offers a compelling investment.
The company is only valued with a P/E of 7.1 (for reference Tesla basically has no comparable P/E given that it's only posting losses) and boasts a juicy dividend of above 5%. While Tesla's stock has been soaring and is pushed to new records almost daily, Daimler is to my mind the significantly safer play as it has both the financial firepower to invest into the future of the automobile and also ramp up production at will if demand grows stronger than expected. Prior to electric vehicles earning sizable market share, Daimler will benefit dearly from its current global leadership position in the premium car market, which allows to company to load up on its cash position.
I deeply feel that investors are currently overoptimistic and overconfident in what Tesla can achieve and notably underestimate the power of established leading global companies, such as Daimler, in terms of financial resources, human resources and production capabilities, to react to a changing market.
Daimler has been pioneering the automobile for more than 100 years, and I cannot picture a scenario that sees the company fading away.
Investors believing in this thesis do find an attractive entry opportunity in the stock right now and should also eye the upcoming Q2/2017 earnings closely.
I hope you like this article and it ignites some sort of discussion. Please "Follow" me if you want to read more about this, so that you will get informed accordingly and timely!
https://seekingalpha.com/article/4085656-daimler-best-dividend-return-play-global-automobile-sector
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Daimler Uses Blockchain to Issue Bonds
Jul 12, 2017 | The Wall Street Journal
By Nina Trentmann
Daimler AG, the German car manufacturer, floated part of its €100 million ($114.1 million) German bond (Schuldschein) using blockchain technology at the end of June. The pilot project was among the first of its kind, the company said.
CFO Journal spoke to Kurt Schäfer, head of treasury at Daimler, about the potential of blockchain for future bond issuances. Below are edited excerpts. Daimler reported a first-quarter net profit of €2.8 billion on revenue of €38.8 billion.
Q. How long has Daimler been experimenting with blockchain?
A. We’ve been working with blockchain technology for a while. In February, we joined the Hyperledger Project — a cross-industry initiative — to drive blockchain technology and open standards in collaboration with other firms. We want to become an active part of the global blockchain community and have made an effort shaping standards across industries. As a major automotive manufacturer with high funding requirements, we aim to help shape the changes in the financial sector.
Q. How does a blockchain bond issuance work?
A. The borrower, the bank and the investors all receive access to a decentralized customer portal. Drawing certificates and contracts are confirmed in there. A so-called smart contract [a computer protocol intended to facilitate the negotiation of a contract] automates the management of the order book.
A [digital] token is generated on the blockchain once the loan contract is signed. The smart contract then allocates a number of tokens to investors. Compared with a conventional bond issuance, blockchain can significantly speed up the process.
Q. Besides speed, are there additional advantages?
A. Blockchain allows you to manage information without a central control unit, contrary to a conventional issuance where this role is taken up by the bank. It provides for greater transparency and also reduces the administrative burden. Each of the three phases of an issuance — preparation, marketing and implementation — is set to benefit from digitization.
Q. Why did Daimler do the pilot?
A. We want to test new technologies and are keen to reap efficiency gains if possible. Issuances via blockchain reduce complexity and provide greater security and transparency.
Q. How long did it the process take?
A. Regulators do not yet allow issuances via blockchain only, so we had to test it in parallel with the conventional issuance process. This process takes several weeks. We hope we will be able to substantially shorten that time period with blockchain.
Q. How will blockchain impact your bond issues going forward?
A. On a group level, Daimler issues around 50 to 70 bonds annually. While we don’t expect it to impact the total volume of issuances, blockchain…would allow a greater number of transactions which would then be smaller in size.
Q. How soon before blockchain is the sole way Daimler issues bonds?
A. There are various open questions that need to be answered first. Who is responsible for a potentially faulty program code? Are smart contracts an automated execution of a conventional contract? Is the paper form still indispensable for contracts? As long as these and other questions have not been answered by the regulators, transactions cannot be displayed by blockchain only.
https://blogs.wsj.com/cfo/2017/07/12/daimler-uses-blockchain-to-issue-bonds/
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German carmaker Daimler facing its own 'Dieselgate' emissions scandal
Jul 12, 2017 | DW
Daimler is alleged to have sold over a million cars in Europe and the US containing engines rigged to cheat emissions tests. German authorities raided several locations associated with the automaker back in May.
A German media research consortium reported Wednesday that German automaker Daimler, the maker of Mercedes-Benz cars, had for almost 10 years cheated emissions tests on two of its lines of engines.
The allegations prompted a series of raids carried by German authorities on a number of Daimler locationsback in May.
Read more: Daimler trying to dispel Dieselgate fears
According to a joint investigation by Germany's WDR and NDR broadcasters, and the "Süddeutsche" newspaper, Daimler's OM 642 and OM 651 engines used an illegal defeat device to power down the engine during emissions tests. Those two engines are thought to be in one million vehicles sold across Europe and the US. Watch video01:04Daimler in prosecutors' sights over emissions
Reports suggest that it could also lead to Germany's Federal Motor Transport Authority (KBA) forcing the Stuttgart-based carmaker to recall the tens of thousands of affected cars, at least in Europe. US regulators and prosecutors would likely pursue their own legal charges.
Rival carmaker Volkswagen used a similar device to cheat emissions tests, which ultimately led to the so-called Dieselgate scandal and the company having to pay out some 22.6 billion euro ($25.8 billion) in fines and compensation.
German prosecutors are also reportedly looking to charge two specific Daimler employees for allegedly misleading customers into buying the cars through false advertising. Further employees may also face similar charges.
A Daimler spokesperson told German media that it does not comment on ongoing investigations but insisted that the automaker was complying with the authorities.
Stuttgart prosecutors have been investigating Daimler over alleged emissions cheating and misleading advertising since March.
More trouble ahead?
US prosecutors also reportedly have their sights set on the German carmaker, where it faces a number of class action law suits by car owners, who claim Daimler understated the emissions levels for a number of diesel-powered models.
The automaker had agreed last year with the KBA to "voluntarily" recall 247,000 vehicles to update "potentially problematic technology," allegedly installed to prevent engines from being damaged.
However, as recently as March, Daimler's head, Dieter Zetsche, dismissed allegations that the carmaker was guilty of breaching emissions laws.
http://www.dw.com/en/german-carmaker-daimler-facing-its-own-dieselgate-emissions-scandal/a-39664497
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China's FAW to recall 680,000 more Mazda cars over faulty Takata airbags
Jul 8, 2017 | South China Morning Post
China’s FAW Car Co, a partner of Japan’s Mazda Motor Corp, will recall over 680,000 Mazda cars due to issues with air bags that were supplied by embattled Japanese auto parts supplier Takata Corp.CHINA AT A GLANCEGet updates direct to your inboxE-mail *By registering you agree to our T&Cs & Privacy Policy
The recall includes Mazda 6 vehicles manufactured in China between September 2008 and March 31 2016, China’s General Administration of Quality Supervision, Inspection and Quarantine said in a statement on its website on Friday.
All faulty parts will be replaced free of charge.
The watchdog said the issue was related to dangerous defects in the airbag inflator on the passenger side, and follows an earlier recall of 280,000 Mazda 6 models manufactured between 2003 and 2008 for a similar issue.
Takata filed for bankruptcy in Japan and the United States last month, burdened with tens of billions in liabilities related to a decade of recalls and lawsuits over faulty airbags supplied to some of the world’s biggest auto brands.
The airbags have been linked to at least 16 deaths and 180 injuries.
The firm will be largely acquired for US$1.6 billion by Chinese-owned, US-based firm Key Safety Systems as part of its financial restructuring.
On Friday the Chinese watchdog said in a statement that it has asked foreign firms General Motors, Daimler’s Mercedes-Benz and Volkswagen to fulfil their obligations to recall vehicles in China affected by faulty Takata air bags as soon as possible.
Exploding airbag scandal pushes Japanese auto supplier Takata towards bankruptcy
It estimated that more than 20 million cars in China were equipped with the faulty airbags, which can explode on impact and spray shrapnel.
Of 37 car manufacturers affected by the faulty air bag issue in China, 24 had already recalled 10.6 million cars by the end of June while another five had made plans to recall a further 1.7 million vehicles, it said.
Global and Chinese carmakers recalled 4.5 million defective vehicles in the first five months of the year, compared with 8.8 million in the first half of 2016.
http://www.scmp.com/news/china/society/article/2101824/chinas-faw-recall-680000-more-mazda-cars-over-faulty-takata
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Is Daimler AG (DAI.DE) Ready for a Breakout?
Jul 12, 2017 | Rives Journal
Investors may be looking at some different technical levels in order to get a better grasp on the markets. Presently, the 14-day ADX for Daimler AG (DAI.DE) is 27.63. In general, an ADX value from 0-25 would signal an absent or weak trend. A level of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The Average Directional Index or ADX is a technical analysis indicator used to describe if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points.
Daimler AG (DAI.DE) presently has a 14-day Commodity Channel Index (CCI) of 88.08. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is currently at 56.06, the 7-day stands at 69.26, and the 3-day is sitting at 89.34.
Taking a peek at some Moving Averages, the 200-day is at 67.29, and the 50-day is 66.00. Dedicated investors may be looking to employ another tool for doing technical stock analysis. The Williams Percent Range or Williams %R is a technical indicator that was designed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed. Daimler AG (DAI.DE)’s Williams Percent Range or 14 day Williams %R presently is at -19.00. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold.
Investors may be searching for stocks that are undervalued. Scanning the markets during obvious pullbacks may be one strategy, but it may take a more concerted effort to identify these names if the market decides to climb further. Getting caught up in the details from news and various economic reports may leave the average investor dizzy and confused. Focusing on the most important data sets may be helpful when trying to muffle all the noise. Heading into the next quarter, investors will be watching which companies are experiencing positive earnings momentum. Often times, earnings that vastly beat expectations may cause the stock to skyrocket. Filling the portfolio with stocks experiencing positive earnings momentum may be a popular choice. Investors may want to look a little bit deeper into the situation to make sure that the momentum is justified. Some investors may already be adept at figuring this out while others may need to put in a bit more work.
https://rivesjournal.com/is-daimler-ag-dai-de-ready-for-a-breakout/213092/
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