Daimler Truck has announced measures to address subdued demand in its European and Asian markets.
The truck and bus maker, reportedly, will implement reduced working hours and a job freeze for employees in its truck-making business in Germany.
The company stated that short-term work would commence in September, with further cost-cutting measures under discussion. This reduction in working hours would 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 per cent compared to the previous year, totalling 1,98,376 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 per cent in the second quarter, up from 13.1 per cent 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 per cent in the second quarter, compared to 9.8 per cent last year. Mercedes-Benz accounted for about 40 per cent 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 specialises in manufacturing a diverse range of trucks and buses under well-known brands such as Mercedes-Benz, Freightliner and Fuso.
The company operates on a global scale, 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.
