FILE - In this Wednesday, May 22, 2019 file photo, Daimler CEO Dieter Zetsche poses prior to the annual shareholder meeting of the car manufacturer Daimler in Berlin, Germany. Automaker Daimler releases second-quarter earnings on Wednesday, July 24. (AP Photo/Michael Sohn, file)

Automaker Daimler loses $1.3 billion on diesel, air bag woes

July 23, 2019 - 10:58 pm

FRANKFURT, Germany (AP) — Daimler AG, maker of Mercedes-Benz cars, says it lost 1.2 billion euros ($1.3 billion) in the second quarter as the company saw 4.2 billion euros in one-time charges for troubles with diesel cars and air bag recalls.

The quarterly loss reported Wednesday was the company's first since 2009 and a bumpy start for new CEO Ola Kallenius, who took over from Dieter Zetsche on May 22 and since then has had to issue two profit warnings.

The company is under investigation in Germany and the U.S. and faces U.S. civil lawsuits in connection with its cars' diesel emissions. It also is facing expenses for recalling cars with faulty air bags from supplier Takata, losses suffered by other automakers, too.

The company said it expected "significant improvement" in the second half.