Daimler Stings Investors With Reduced Dividends To Fund EV Push

Daimler on Tuesday slashed its dividend as the company tries to cut costs and conserve cash to pay for an expensive shift to electric cars.

The maker of Mercedes-Benz cars will propose a dividend of 0.90 euros ($0.98) a share at its annual meeting on April 1, the company said in an earnings release on Tuesday. The dividend payout will amount to 1 billion euros ($1.1 billion) compared with 3.5 billion ($3.8 billion) in 2018 when the company paid out 3.25 euros a share.

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PUGPROUD - 2/11/2020 11:15:40 AM

+1 Boost

This is just the tip of the iceberg. The industry is in for some difficult days ahead with both profits and cash flow being squeezed to fund EVs and autonomous driving systems. Both of which have long payback time frames. Raising prices, cutting back on model offerings, reducing dividends, reducing staffing and lowering profit projections are all signs of an industry under pressure. More consolidation is on the horizon.

carloslassiter - 2/11/2020 7:35:55 PM

+1 Boost

Sounds like we all need to buy some electric cars pronto.