Daimler shares fell sharply today after the German carmaker said tougher emissions rules will hit earnings in 2020 and 2021.

It said this has forced it to seek more than €1 billion in personnel cuts at Mercedes-Benz Cars by end of 2022.

The company said it expects to achieve a return on sales from operating activities at Mercedes-Benz Cars & Vans of at least 4% in the year 2020 and at least 6% in 2022. 

Earlier this year, Daimler had said it hoped to achieve a return on sales of 3% to 5% at Mercedes-Benz Cars.