Too many Mercedes-Benz on 5th Avenue: Just a year ago, Donald Trump threatened German car manufacturers with import duties. However, BMW and Daimler are now benefiting from the tax reform of the US president.
Cars from Mercedes-Benz
Friday, 22.12.2017
20:59 clock
The carmaker Daimler and BMW Expect billions of extra profits for the tax reform of the US president Donald Trump – even before it even comes into force. Because the tax rate for companies decreases from 35 percent to 21 percent from 2018, both Daimler and BMW rival have reassessed the future tax assets and liabilities already included in the balance sheet. The result: for the coming financial year 2017, the consolidated profit will be significantly higher than previously assumed, as Daimler and BMW announced just hours after signing the Trump tax reform.
Trump had that Law signed on Friday – and talked about a law “for the middle class and for jobs” and the “biggest tax reform of all time”. The $ 1.5 trillion tax relief bill has been far and away the greatest success for Trump and the Republicans. Core is a massive reduction in income tax for companies from 35 to 21 percent of 2018.
1.7 billion euros for Daimler
“This will result in a taxable income of probably 1.7 billion euros, which increases the consolidated result of the year 2017 accordingly,” it said at Daimler in Stuttgart, However, there are also opposing effects that are not related to the US tax reform. On balance, the consolidated result would increase “only by 1 billion euros”. “In addition, the bill contains various other individual measures, the effects of which on Daimler are currently being analyzed in detail,” continues the statement.
For the first nine months of 2017, Daimler announced a net profit of just under € 7.6 billion, a billion more than in the previous year. Analysts had Daimler 
so far for the year as a whole, a consolidated profit of 9.9 billion euros.
Up to 1.55 billion for BMW
BMW also expects a billion-dollar gift from Trump’s tax reform. The revaluation of tax positions will lead to a positive effect on the consolidated result of 0.95 to 1.55 billion euros, said the Dax Group Munich With. The exact amount can only be calculated in the context of the 2017 consolidated financial statements. From BMW It was also said that in addition to the reduction in the tax rate from 2018, negative effects from the reform could also arise.
BMW came in the first nine months of 2017 to almost 6.2 billion euros profit, 800 million euros more than last year. Analysts’ forecasts for the year as a whole so far averaged € 7.3 billion.
Trump: Too many Mercedes-Benz on 5th Avenue
Trump’s tax gift for the German carmaker is not without irony. In January, the US President, who was not yet sworn in, had criticized in an interview that he saw many Mercedes-Benz cars in New York’s 5th Avenue – but in Germany there are hardly any Chevrolets, That was unfair to the American carmakers. At the time, Trump threatened the German manufacturers with severe times and high import tariffs. In the direction of BMW he complained: “If you want to build a factory in Mexico and sell cars in the US without a 35-percent tax, then you can forget that.” In the Mexican San Luis Potosi the Munich of 2019 want to build the 3 Series for the world market.