In the short to medium term, Daimler Trucks expects demand to decrease in its core markets in Europe and the United States. This normalization has already begun and is expected to continue until 2021. Daimler Buses expects demand to rise. In the Daimler Trucks & Buses division, investment and cost pressure will continue in the coming years. Investment in new technologies is needed, also in the CO2 neutrality of the fleet through electric drive and in the automation and connectivity of trucks and buses.
In terms of market share and profitability, the Daimler Buses and Daimler Trucks North America business units, which together account for 55% of revenue, are among the best in the industry. However, the profitability of Mercedes-Benz Trucks in Europe and Latin America– together accounting for 30% of global revenue – is currently unsatisfactory. Mercedes-Benz Trucks Europe has therefore started to reduce variable costs by €250 million as well as personnel costs by €300 million by the end of 2022. In addition, the sales organization is to be restructured. In Brazil, the number of platforms will be significantly reduced in order to return to profitability. In Japan, sales and the after-sales organization will be set up more efficiently.
The market for heavy trucks, on which Daimler Trucks is increasingly focusing, offers good global growth and earnings prospects. In the long term, the truck manufacturer sees considerable business potential in highly automated trucks that travel between logistics hubs on highways. On this basis, the division Daimler Trucks & Buses anticipates a return on sales from operating activities of at least 5% in 2020 and at least 7% in 2022.