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Daimler Truck To Spin-Off From Daimler On Dec 10; Defines Plans To Increase Its Margin

TNI || New Delhi || 13th Nov 2021

Daimler Truck

Come December 10, Daimler Truck will spin-off from Daimler. With this taking place, the company has outlined measures for cost-cutting, which according to it, will boost profit margins ending up in a double-digit percentage by 2025.

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The truck maker is currently eyeing selling 60% electric models by the end of this decade.

As per the company’s CFO, Jochen Goetz, they are sure that the margins shall either remain the same or grow as the company transitions into electric vehicles.

CEO of Daimler, Martin Daum is of an opinion that the cost of driving an electric vehicle to customers will be the same or even less as compared to diesel vehicles in the long run, even though the electric models come with a heavy price tag at the time of initial buy.

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Notably, Daimler Truck’s first battery-electric truck named eActros costs three times more than its diesel counterpart. Daum adds that cents per mile are what that matters.

Daimler Truck is currently the world’s largest commercial vehicle maker but is reporting lower margins as compared to its rivals.

It is targeting a profit margin percentage of 9% in Europe, 12% in North America, and 10% in Asia by 2025.

As per its board members, cutting costs, focusing on heavy-duty vehicles and raising prices will bring the company closer to the margins it has thought for each region.

Chip shortage, according to Goetz, will continue to have a severe impact on revenues next year as well.

Martin Daum is crystal clear when he says that they have a set goal, are determined to reach higher profitability and at the same time win the race to zero emissions.