Daimler reports $1.86bn loss in Q1

Daimler, the parent company of Mercedes-Benz, has reported a first quarter loss in 2009 of $1.86bn. This compares to a $3bn profit in the same period a year ago. The results were much worse than had been expected with all the company's divisions posting losses as a result of the dramatic drop in demand for the company's products. The company says that it is going to slash its costs by around $5bn and hopes that the launch of the new E-Class will improve sales. The company has, however, warned that it expects to make a big loss in the second quarter. The company's share took a plunge after the news was announced but had recovered most of their value by the end of the day.

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