Daimler hikes risk provisions, sees a difficult second quarter

Daimler on Wednesday warned that the automaker faces a difficult second quarter as it increased credit risk provisions to expect rising delinquencies among consumers who leased or bought Mercedes-Benz passenger cars.

The automaker reported 448 million euros in credit risk provisions to cover possible credit losses following the coronavirus pandemic which has caused global demand for passenger automobiles to stall.

Daimler, the owner of Mercedes-Benz, is among the automakers that have halted production in their auto plants due to the spread of the coronavirus.

Coronavirus has so far infected more than 3,141,981 people and killed more than 218,564 people worldwide.