Daimler Truck Aims For Overall Double Digit Return Of Sales By 2025

Daimler Truck will target benchmark profitability in all regions, and aim for an overall double digit return of sales by 2025.

The separation and stock market listing for Daimler Truck is on track. The completion is expected by year end 2021.

Daimler Truck announced that it will reduce fixed costs, capex and R&D spending by 15% by 2025. Fixed cost reduction will include a personnel cost reduction target for Mercedes-Benz Trucks of 300 million euros by 2022, and new measures to reduce complexity streamline processes and drive sustained savings.

Daimler Truck noted that it will also intensify its focus on the most profitable segments and regions. This will include a clearer emphasis on the more profitable heavy duty segment in the main regions, and refocusing investments from ICE powertrains towards zero emission and standardized global EV architectures.

Daimler Truck sees significant growth potential in services and aims to increase the revenues on the service portfolio from the current 30% towards 50% in 2030.

Daimler Truck will further reduce spending in conventional powertrain and redirect the vast majority of R&D spending to ZEV technologies by 2025. For ZEV technology, the company is committed to both battery-electric vehicles (BEV) and hydrogen solutions.

Further products such as a 500km range eActros LongHaul will be launched in the coming years. With a dedicated next generation BEV truck planned for the coming years, Daimler Truck is aiming for a range capability of up to 800 km, Daimler Truck said in a statement.

The lithium-ion battery manufacturer and developer Contemporary Amperex Technology Co. Limited will be the supplier of lithium-ion battery packs for the Mercedes-Benz eActros LongHaul battery-electric truck, which is planned to be ready for series production in 2024. The supply will extend beyond 2030.

Daimler Truck also plans to accelerate the development and deployment of Hydrogen Fuel Cell Trucks (FCEV).

Daimler Truck and Shell have signed an agreement to jointly drive hydrogen-based fuel-cell trucking for decarbonizing road freight in Europe. Both companies are committed on building-up a truck-suitable hydrogen-refueling infrastructure and bringing fuel-cell trucks in customer hands.

This will start with an industry-first 1.200 km 'hydrogen corridor' between Rotterdam, Hamburg and Cologne, with Shell providing hydrogen fueling stations along this route and Daimler Truck committing to supply hydrogen Trucks for use by customers by 2025.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Sturtevant, Wisconsin-based BRP U.S. Inc. is recalling around 20 models of Side-by-Side vehicles citing fire risk, the U.S. Consumer Product Safety Commission. The recall involves about 34,400 units of Model Years 2020 and 2021 Can-AM Defender HD10 side-by-side vehicles. While reporting financial results for the second quarter on Friday, technology company Honeywell international Inc. (HON) raised its adjusted earnings and sales guidance for the full-year 2021, based on the second-quarter performance and management's outlook for the remainder of the year. For fiscal... Shares of Vodafone Group Plc were gaining around 2 percent in the morning trading in London after the British telecom major reported higher revenues in its first quarter. Looking ahead, the company said it is on track to deliver fiscal year 2022 guidance, with Adjusted EBITDAaL expected to be between 15.0 billion euros - 15.4 billion euros and Adjusted free cash flow of at least 5.2 billion euros
Follow RTT