Daimler Truck has announced measures to address reduced demand in its European and Asian markets. The truck and bus maker will implement reduced working hours and a job freeze for employees in its truck-making business in Germany. Short-term work will start in September, with further cost-cutting measures under discussion. This reduction in working hours will specifically affect employees at truck manufacturing facilities in Germany, while the bus division remains unaffected. Although job cuts are not currently planned, there will be no new hiring.
The company’s first-half total orders, an indicator of future sales, dropped by 10 percent compared to the previous year, totaling 198,376 units. This decline is attributed to weakened demand in key truck markets, particularly in Asia and Europe.
Despite these challenges, Daimler Truck’s North American business benefited from price hikes, achieving a margin of 14.5 percent in the second quarter, up from 13.1 percent in the previous year, even as unit sales fell. However, lower volumes in the Europe-focused Mercedes-Benz business brought margins down to 6.5 percent in the second quarter, compared to 9.8 percent last year. Mercedes-Benz accounted for about 40 percent of Daimler Truck’s earnings last year.
Daimler Truck was established as an independent entity in December 2021 following a strategic spin-off from Daimler AG. Headquartered in Stuttgart, Germany, the company specializes in manufacturing a diverse range of trucks and buses under well-known brands such as Mercedes-Benz, Freightliner, and Fuso.
The company operates globally, with manufacturing plants and sales offices spread across Europe, North America, South America, Asia, and Africa. Committed to reducing its carbon footprint, Daimler Truck is investing heavily in advancements such as autonomous driving, connectivity, and sustainable transportation solutions, including electric and hydrogen fuel cell vehicles.
