Big losses reported by Daimler and Nissan

Carmakers Daimler and Nissan have reported big losses in the face of continuing declines in global vehicles sales. Daimler, the owner of Mercedes-Benz, made a net loss of 1bn euros in the April to June quarter. eanwhile, Nissan’s quarterly loss totalled 16.5bn yen ($170m; £104m).

Honda also reported results on Wednesday. Although it avoided a quarterly loss, its profits fell 96%.

Daimler’s 1bn euros quarterly net loss compares with a profit of 1.3bn euros made in the same period a year earlier.

The firm, which makes buses and lorries in addition to cars, saw group-wide sales fall 25% to 19.6bn euros.

Sales of its Mercedes-Benz cars were down 19% from a year before.

Daimler is also continuing to be hit by the expense of giving up its former 19.9% stake in Chrysler, which saw it write off Chrysler’s outstanding loans, and agree to pay $200m (£122m) a year into the firm’s pension fund.

It said its continuing exposure to Chrysler cost it 387m euros during the quarter.

Nissan’s loss for the April to June period compares with a profit of 52.8bn yen a year earlier. Its revenues were down 36%.

Honda’s quarterly profit, also for the April to June quarter, was 7.6bn yen, down from 173.4bn yen last year. Its revenues were 30% lower.

Koichi Kondo, Honda’s executive vice president, said conditions in the global car market remained “extremely severe”.

However, the company does now predict a slow recovery in the marketplace, and has upgraded its annual profits forecast as a result.

Honda now expects to make a net profit of 55bn yen for its financial year to 31 March 2010. Three months ago it had forecast an annual profit of 40bn yen.