Profitable growth for the division of Daimler Trucks

The positive trend in the commercial vehicle sector, which last year experienced a decline of 50% was confirmed in the figures of Daimler Trucks for Q3 2010 compared to last year's results, sales of "Daimler Trucks have grown by 44%.

By the end of September of 2010, total sales of Daimler Trucks had increased by thirty-four percent to 249,000 units, compared with total sales of 185,600 units during the same period last year.

Daimler Trucks also expects an increase in global truck markets by year end. This implies an increase of five percent of the European market, ten to fifteen percent in the NAFTA region, 50% in Brazil and between 8:30 p.m. percent in Japan.

Andreas Renschler said today in Wörth prospects Daimler Trucks and Daimler Buses in front of an audience composed of analysts and investors: "Forecasts indicate that global markets for large and medium-tonnage trucks will increase by eight percent to 2.6 million units Between 2010 and 2013. Regarding Daimler Trucks, it seems that we will succeed in increasing sales by more than forty percent to 500,000 units during the same period. Given this horizon, the rate of return on sales of 8% is achievable for Daimler Trucks throughout the business cycle. "

Renschler has attributed this positive development of long-term business strategy of the Global Excellence program. Business developments in the commercial vehicle sector are characterized by pronounced cycles. Thanks to long-term strategy and the four initiatives, Daimler Trucks has managed to maintain its position as the largest producer of trucks, even during the economic crisis.

The purpose of the first initiatives, management of market cycles, is to guide Daimler Trucks as the cyclical nature of business in this sector and thus to ensure long term profitability. Using tools such as flexible production capacity could adjust the production of commercial vehicles and engines during both cyclical downturn and the current recovery.

Reschler added: "We market forecasts grounded optimism and confidence. The economy is recovering, and with it the demand for commercial vehicles. It is true that they vary from market to market, but overall ratios are globally positive. However, I have not yet fully overcome the crisis. I estimate that in 2013 we return to the application that I met in the triad markets in 2007 or 2008. "
The second initiative, operational excellence, focus on the systematic optimization of all processes, in particular the cost base. Daimler Trucks North America (DTNA) and Fuso in Japan realignment implement programs that will lead to savings of around 720 million euros to DTNA and about 760 million Euro Fuso since 2011. Both programs are evolving unusually rapidly. As the largest manufacturer of commercial vehicles, Daimler is also stepping up its efforts to generate further synergy effects and economies of scale by incorporating new products into a smart strategy in these regions. "A common rate of 70% seems to be realistic in terms of today," said Renschler. "This includes not only components such as engines, transmissions and shafts, and electrical and electronic architecture of our vehicles."

The third initiative involves the penetration of existing markets and potential. For developed markets, the priority is to offer customers the best total cost of ownership (TCO). In addition to the line of vehicles, this goal will ever achieve more through a comprehensive range of services including full service leasing and fleet management and intelligent customer costs (FleetBoard).

In terms of new markets, the emphasis is on the BRICs and Next 11. Registrations of new vehicles is estimated that large and medium tonnage will grow in Russia, India and China with more than 10% per year between 2009 and 2020.

Daimler Trucks is well positioned in the BRIC countries. A joint venture with Foton Motor equal proportions received Chinese government approval, and Daimler Commercial Vehicles India is building a truck manufacturing plant in Chennai, India. Trucks for the Indian market prototypes are already being tested on land DCIV experience and will be launched in India in 2012. In Russia, two sites are managed joint venture with local manufacturer of trucks and market leader Kamaz, production and sale of small tonnage truck Fuso Canter and Mercedes-Benz Actros. Both vehicles are assembled at the plant in Kamaz Chelny. At Mercedes-Benz do Brasil, 400 million have been invested to increase plant capacity by 15% SA £ o Bernardo da Campo. Furthermore, the company prepares its plant in Juiz de Flora to produce commercial vehicles, so that she can begin assembling the Mercedes-Benz Actros 2011.

According to Renschler, Daimler Trucks involvement in emerging markets is part of its globalization strategy in the long term. "In some years, when we made known two local brands in China and India and we have created an additional production capacity, Daimler Trucks will be able to enter the volume segment of the market and substantially increase sales there," Renschler said.

Ensuring that future generations of products offer even more innovation and value to our strategic objective is the fourth of the Global Excellence program initiatives. This goal is demonstrated new products and distribution for Europe Truck Mercedes-Benz Atego BlueTec Hybrid and Fuso Canter truck tonnage than that already meets emissions standards for trucks and Japanese fuel efficiency available from 2015. An important aspect of Daimler Trucks are alternative propulsion systems, which proved its supremacy in the division the development of hybrid propulsion, based on natural gas and fuel batteries.

Source: http://www.daimler.com/

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