Daimler will quit building sedans in U.S. and Mexico to cut costs

FRANKFURT — Daimler said on Thursday it will stop building Mercedes-Benz sedans in the United States and Mexico as part of cost-cutting measures to streamline production, after saying it will post a smaller-than-expected operating loss in the second quarter.

The company said it will post an operating loss of 1.68 billion euros ($1.91 billion) in the second quarter, pre-releasing earnings ahead of July 23.

"Daimler pre-released better than consensus second-quarter numbers," Jefferies analyst Philippe Houchois said in a note late on Thursday.

A slump in demand forced by dealership closures and lockdowns due to the coronavirus crisis pushed Daimler to report an adjusted second-quarter loss before interest and taxes (EBIT) of 708 million euros during the same period.

At its Mercedes-Benz Cars & Vans unit it posted an operating loss of 1.13 billion euros, and an adjusted operating loss of 284 million euros.