Shares of Daimler AG traded higher after the company's CEO was quoted in the German newspaper Handelsblatt saying that the auto manufacturer presently does not have any need for state aid.
Auto, truck and commercial vehicle maker Daimler AG's (DDAIF:OTC) Chief Executive Officer Ola Kaellenius, yesterday stated in an article in the German newspaper Handelsblatt that "the company currently has sufficient funding and sees no need to apply for state aid, despite halting production at its major plants in Europe to contain the coronavirus."
Kaellenius reportedly told the paper that "Daimler currently has no need for state aid. Generally speaking, the industry had a very good order intake before the crisis." When asked directly whether the company would help support its suppliers that are in trouble, CEO Kaellenius remarked, "We are in permanent discussions with our suppliers and consult them. Until now there has not been a case where liquidity was an issue."
Kaellenius advised that the company is in the process of shutting production down at its Tuscaloosa, Ala., plant and has reopened its factory in China and is seeing demand for cars recovering in that country.
Daimler AG is an automotive engineering and manufacturing company headquartered in Stuttgart, Germany. The company develops, produces and distributes cars, trucks and vans in Germany, and the oversees the management of the Daimler Group. Its well known business segments include Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and worldwide financing arm Daimler Financial Services.
Daimler has a market capitalization of around $33.5 billion with approximately 1.07 billion shares outstanding. DDAIF shares opened 16% higher today at $28.71 (+$3.96, +16.00%) over yesterday's $24.75 closing price. The stock has traded today between $28.22 and $31.67 per share and is currently trading at $30.82 (+$6.07, +24.51%).
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