Shares in Daimler (DE:DAI) fell 7 per cent after it emerged that the US Justice Department has ordered an emissions-related investigation into the carmaker's testing processes. The German giant hasn't been found guilty and isn't the only manufacturer to get caught up in this wave of paranoia. But ironically sentiment still took a noticeable knock on the same day that it revealed an upbeat outlook for the year ahead.
As expected, first-quarter results weren't very inspiring. While sales crept up 2 per cent, operating profit slid 9 per cent in a difficult period clouded by tough comparatives and unstable global economic growth. However, management is confident of making significant progress in the year ahead, fuelled by a sharp recovery from the world's biggest market, China, and a warm reception to its latest Mercedes-Benz range. In the first three months of the year, Mercedes-Benz's sales soared nearly 13 per cent, representing twice the rate of its rival BMW (DE:BMW).
