Daimler seeks to sell French factory in production overhaul

imageStock Markets4 hours ago (Jul 03, 2020 12:30PM ET)

(C) Reuters. FILE PHOTO: The Mercedes-Benz logo is seen on a car in front of the Mercedes-Benz Museum in Stuttgart

FRANKFURT/PARIS (Reuters) – Daimler (DE:DAIGn) will seek to sell its factory in Hambach, France, as part of an overhaul of its production system, the German carmaker said on Friday, prompting France’s finance minister to urge the company to reconsider.

The move comes as the auto industry faces overcapacity and plunging demand for new cars in Europe.

It will also lead Daimler to take a restructuring charge of hundreds of millions of euros in its second quarter, the company said.

Daimler, which owns the Mercedes-Benz and Smart brands, had used the Hambach factory to produces electric and combustion-engined variants of its two-seater Smart vehicles, making more than 80,000 cars in 2017.

But production of the Smart will move from France to China after Daimler said last year it would build its next generation of Smart electric cars through a joint venture with Geely (HK:0175).

“I hope that the future of this modern and exemplary site which has chosen the ecological transition, notably by producing electric vehicles, will be assured,” French finance minister Bruno Le Maire said in a statement.

“Daimler must keep all options open, including keeping the site,” he said.

Daimler seeks to sell French factory in production overhaul

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *