Daimler's Mercedes sales drive higher but charges put brakes on profit

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Daimler's Mercedes sales drive higher but charges put brakes on profit
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Daimler cut its dividend after annual profits more than halved

) reported its biggest drop in annual profit in a decade on Tuesday, a 64% drop reflecting more than 5 billion euros in charges as well as investment as Mercedes-Benz pushes into electric and hybrid vehicles.

Kaellenius said restructuring at the vans division would deliver results this year but cautioned Daimler’s passenger car operations face a tough couple of years as the company launches electric and hybrid vehicles. Kaellenius is tasked with safeguarding Daimler’s success as the industry undergoes sweeping changes including tougher environmental rules and a costly shift to electric power.

Mercedes-Benz is readying a major push into electric and hybrid cars, with the proportion of electrified vehicles in its fleet set to jump to 9% from 2% in 2020 with production of an electric A-Class, electric van and electric SUV.

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