Daimler AG

Daimler profits hit by costs of diesel emissions recall

German automaker Daimler said Friday that its net profit fell 16 percent in the third quarter as a voluntary recall to improve diesel emissions hurt earnings at its Mercedes-Benz luxury car brand.

Net profit fell to 2.3 billion euros ($2.7 billion) despite a 6 percent increase in sales revenue to 40.8 billion euros.

The company based in Stuttgart said that earnings at the Mercedes-Benz division, a pillar of the company's earnings, were hit by a charge of 223 million euros to pay for an engine control software update on existing vehicles to reduce diesel emissions. The voluntary recall is part of an effort by German automakers to restore confidence in diesel technology and...

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