For its first results as an autonomous group, Daimler Truck recorded in 2021 the fruits of the strategy to improve its profitability. A strategy launched since 2019 with a total commitment to electromobility. With 455,400 vehicles sold in 2021, compared to 378,300 in 2020, revenues reached 39.8 billion euros, up 10%. And the manufacturer received 590,000 orders, an increase of 37%. Its EBIT amounted to 2.552 billion euros, with a gross profit of 6.1%, compared to 1.9% in 2020. Its outlook for 2022 is also good with 590,000 vehicles ordered last year. The sales forecast is between 240 and 280,000 vehicles in Europe. In North America, the manufacturer is aiming for 255 to 295,000 vehicles. For an expected turnover between 45.5 and 47.5 billion euros.
Return on investment and reduction of ancillary costs
Daimler Truck claims to have derived its profitability in 2021 from the increase in sales of its new and used vehicles and its after-sales services. But other factors came into play. Its strategy of structural improvement of its production put in place to offset the costs of covid-19 has reduced its costs. The same goes for the delegation, from March 2021, of its production of Chinese thermal trucks to its joint venture with Foton. An approach also carried out for its mid-range combustion engines with Cummins. This has freed up funds to develop its electromobile range.
This electric range already benefits from sales aid from European and American states. Aid that will offset part of its industrial costs. In addition, the strategy of “co-opetition” (competition-cooperation) with Volvo Trucks and Traton to finance the deployment of an electric charging network, also reduces its share of financing. Its collaborations with energy companies like Shell will do the same for its hydrogen vehicles.
Double-digit profitability in all activities
With these guarantees, Martin Daum, President of Daimler Truck, wants to “focus on the factors we have in our hands to further unlock our profit potential and be at the forefront of sustainable transport. From 2022, the group will work on all profitability levers. It will thus reduce its annual R&D investments by 15% compared to 2019 until 2025, to make capital and sustainable transport more profitable. He hopes to increase the returns of Mercedes-Benz by 10%, Trucks North America by 12%, Trucks Asia by 10%, Daimler Buses by 7.5% and its financial services by 14%. Even the effects of the shortage of semiconductors and the war in Ukraine will not affect its results since the group has already provisioned them for 2022.
