Daimler Group has decided today to suspend the majority of its production in Europe, as well as work in selected administrative departments, for an initial period of two weeks. An extension of this halt will depend on further developments. Wherever operations need to be continued, the company will take appropriate precautions to prevent the infection of its employees.
The suspension applies to Daimler’s car, van and commercial vehicle plants in Europe and will start this week.
Given the ongoing spread of COVID-19, the economic effects on Daimler cannot be adequately determined or reliably quantified at this time.
Daimler is monitoring the situation constantly and will take further measures as required. Full operations will be resumed when the situation improves.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Daimler AG (ticker symbol DAI) is increasing its financial flexibility with a further loan facility agreement in the amount of €12 billion. This is in addition to the existing €11 billion revolving credit facility with a term until 2025 including extension options. The additional loan facility can be utilized within a 12-month period with two extension options of six months.
The loan facility was agreed with the four lenders BNP, Banco Santander, Deutsche Bank and JPMorgan on April 1, 2020. Syndication has started. The further credit line creates an additional liquidity buffer in addition to Daimler’s already strong liquidity and financial flexibility. At the end of 2019, Daimler had gross liquidity of approximately €24 billion in its industrial business.