Daimler CEO Kang Songlin: Orders without government assistance still huge

Although factories and supply chains have been threatened, Daimler has not shown pessimism.

Recently, Daimler CEO Kang Songlin said in an interview with the German Business News that although Daimler's major plants in Europe have suspended production to control the spread of the new coronavirus epidemic, Daimler currently has sufficient funds No need to apply for government assistance.

"At present, Daimler does not need government assistance. Generally speaking, the automotive industry still has a very large order volume in the face of the crisis." Conlinson said in an interview.

In addition, Conlinson said that Daimler has reopened its factory in China and that demand for cars is recovering in China, the world's largest automotive market. "The vast majority of our Chinese dealers have reopened and customers have returned. Every day more people come to car dealers to watch cars. Demand is picking up, which makes us optimistic."

Kang Songlin's statement was a response to the speech of German politicians on March 23.

According to foreign media reports, due to the epidemic, Daimler's financial pressure will further increase, and it is very likely that it will be maliciously acquired. In order to protect domestic enterprises, some politicians in Germany have asked government departments to protect domestic enterprises from being acquired maliciously by foreign capital. The German government has also promised to provide liquidity support to enterprises. A government source said that the German cabinet will support a supplementary budget of 150 billion euros (about 1.14 trillion yuan) to further assist German companies.

In response to funding pressure, if you do n’t want to be acquired maliciously, Daimler has to take the initiative to “warm up” or form a “German-German alliance” with BMW, or Renault-Nissan formed the "French-Japanese-German" alliance.

In its 2019 annual report released in February, Daimler had said that due to the epidemic, the group will face a decline in sales performance and may also pose a threat to the manufacturing, procurement and supply chain markets. Currently, Daimler has stopped most of Mercedes-Benz's production lines in Europe and the United States due to a broken supply chain. The temporary suspension is applicable to Daimler's automotive, truck and commercial vehicle plants in Europe, and will resume full operation when conditions improve.

In addition, starting March 24, Daimler's plants in Tuscaloosa, Alabama, and Charleston, South Carolina, will be closed for two weeks.