The automaker also took a hit of 1.6 billion euros ($1.8 billion) following a reassessment made in connection with ongoing governmental and court proceedings and measures relating to Mercedes-Benz diesel vehicles.
"A decision by the Board of Management in the context of the product portfolio review and prioritization, which was taken today, will affect earnings of the Mercedes-Benz Vans division in the second quarter (of) 2019 by around 0.5 billion euros ($562.9 million)," Daimler said.
Daimler also said lower-than-predicted growth in the automotive markets had an impact, as did slower product ramp-ups that had affected availability throughout this year.
Sales of Mercedes cars fell 7 percent in the first quarter in part due to manufacturing bottlenecks for the A-class compact car in Aguascalientes, Mexico, the Mercedes-Benz Van in Charleston, S.C., and the Mercedes-Benz GLE SUV in Tuscaloosa, Ala.
Daimler's announcement came after suppliers Johnson Electric Holdings and Sensirion slashed their earnings forecasts on Thursday, blaming a slowdown in car sales and pessimism about the prospects of a Chinese car sector recovery.
Automakers have been grappling with a crackdown on diesel emissions since 2015, when Volkswagen Group admitted to cheating in U.S. pollution tests on diesel engines.
The pressure has come at a time when the industry is also having to invest heavily in electric and self-driving vehicles, cope with slowing growth in China, weak markets in Europe and a rise in global trade tensions.
In May, German competitor BMW warned on profits, citing higher than expected investments, while VW said the return on sales at its passenger cars division would come in at the lower end of its target.