German Handelsblatt: Comment: In future, Daimler should also sell truck engines to rivals 002638

Truck models from the Actros series

Daimler works councils also want to sell heavy truck engines to competitors.

(Photo: Daimler AG)

Axles, transmissions, diesel engines – the integrated drive train has been the ultimate differentiator in the truck business for almost a hundred years. The more efficient the engine, the more likely freight forwarders are willing to buy a truck of a certain brand. In contrast to the passenger car sector, soft factors such as design do not count much in this hard-calculated business.
At first glance, it therefore seems somewhat foolish when Daimler works council chairman Michael Brecht now demands that his company should sell its most important unique selling point for trucks – the heavy engine – to competitors in the future. On closer inspection, however, the trade unionist’s request is very promising.
The reason: Electromobility is about to make a breakthrough in the commercial vehicle industry as well. The importance of conventional drives and thus their unique character will decrease drastically within a decade. At the same time, however, the combustion engine will likely remain very important in many markets and in some fields of application for a long period of time for semi-trailers that weigh tons.

If Daimler wants to remain the market leader, the group has to take multiple paths and develop a new generation of heavy-duty engines. However, the expense of hundreds of millions of euros only pays off if the number of items in production remains high. So it makes sense to share your own technology with third parties in the future, as this approach can even result in a win-win situation for everyone involved. For Daimler, because the company can keep its costs low and its market share high. For the employees, because their existing jobs will be kept for a little longer.

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Focus on one technique
And the concept is also attractive for other truck manufacturers. After all, very few providers are likely to have the financial and human resources to further develop several drive concepts in parallel. So you have to focus on one technique. With the bought-in units from Daimler, however, they remain capable of acting everywhere.
Another part of the truth is that Daimler should stop its own development of medium-weight engines, of which Daimler produces not several hundred thousand but only a few tens of thousands per year. The planned cooperation with the US specialist Cummins in this segment is correct – even if the union largely rejects the project in Mannheim.
More: After the split, Daimler wants to hold 35 percent of the truck business

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