BERLIN -- Daimler warned of risks for the economy and its own business from the outbreak of coronavirus that is spreading in China and around the world.
"Risks for the Daimler Group may not only affect the development of unit sales, but may also lead to significant adverse effects on production, the procurement market and the supply chain," the Stuttgart-based company said in its annual report.
It also noted that the epidemic posed a risk for economic growth in China, other Asian countries and worldwide.
In its annual report, Daimler also said the introduction of the stricter WLTP emissions testing regime in Europe had made it harder to comply with new rules.
"In the light of today's knowledge, this makes it more difficult to achieve the CO2 targets as of 2020," Daimler said.
The current public focus on vehicle emissions as well as possible certifications stops and recalls could result in damage to Daimler's reputation, the company said.
Daimler increased provisions for regulatory proceedings, liability and litigation risks to 4.9 billion euros, up from 2.1 billion euros in 2018. The increase relates to ongoing governmental and legal proceedings and measures taken with regard to Mercedes diesel vehicles in several regions and markets, as well as an updated risk assessment for an extended recall of Takata airbags.