Daimler posts 26% increase in truck orders in Jan-Nov 2011

Article by Anita Panait, on January 1, 2012

Daimler Trucks posted a 26% increase in truck orders to 420,000 units in January-November 2011 from 334,200 units for the same period in 2010. Daimler AG’s truck unit also recorded a 15% hike in sales to 371,200 for the 11-month period. The growth was attributed to Daimler’s performance in the NAFTA region, where it posted an 81% increase in truck orders to 124,400 units.

Daimler’s truck arm logged a 47% surge in sales to 102,400 units in January-November 2011 from 67,900 in the same period in 2010. In Western Europe, Daimler Trucks documented an 11% surge in sales to 53,500 units in the 11-month period to November 2011, from 48,100 units in the same phase in 2010. 

Daimler posted a very slight decrease in sales in Japan with 111,500 units sold in for January to November 2011, from 112,100 units in the same period in 2010. With these positive figures, Daimler Trucks’ plants are expected to produce at full capacity in the first quarter of 2012.

Daimler Trucks is expecting its annual sales to surge to over 500,000 units by 2013, considering an anticipated expansion of global truck markets. Moreover, it is expected to deliver 700,000 trucks annually globally by 2020.

Andreas Renschler remarked that Daimler Trucks is aiming to achieving profitable growth, which is why they have set an objective of posting an eight-percent average return on sales starting in 2013, as they maintain the same level of profitability across the entire business cycle. With demand surging fast in new markets, Daimler Trucks is particularly expanding its production capacity in emerging markets.

For instance, Daimler India Commercial Vehicles (DICV) will commence operations at its new BharatBenz truck production site in April 2012, with initial production capacity of 36,000 units annually. The site’s production capacity is planned to be ramped up to 70,000 units. DICV is planning to take advantage of the capability of the Indian supplier industry by sourcing around 85 percent of the trucks’ parts and components locally.

In addition, Daimler Trucks intends to expand its partnership with Russian truck-maker Kamaz. The joint ventures between Kamaz and Mercedes-Benz Trucks and between Kamaz and Fuso are now operational and have sold 3,400 trucks through November 2011.

Kamaz has unveiled the first jointly built truck – essentially a Kamaz truck fitted with Daimler components and tailored to the needs of Russian customers -- during the Comtrans show in Moscow. Following final approval, a new joint venture between Daimler Trucks and Foton in China is set to commence operations in just a few weeks.

Renschler added that the approval marks an important step in Daimler Trucks’ Global Excellence Strategy, which allows the division to decisively take part in the growth of the truck market in china over the long term. It is expected that the medium and heavy-duty market in China would hit 1.2 million units in 2010. It is also expected that around 1.5 million trucks over six tons GVW will be sold in China annually by the end of the decade.

Daimler Trucks remains optimistic despite some general economic risks. “The truck business is a capital goods business and therefore subject to cyclical fluctuations,” says Andreas Renschler, Member of the Daimler AG Board of Management with responsibility for Daimler Trucks and Daimler Buses. “We’re prepared for these cyclical ups and downs, and the exceptionally difficult year we had in 2008 demonstrated that our business model is effective. Our strategic approach enables us to flexibly adapt our global production systems to any and all sales and market situations, and we also offer the right product range and technologies for every market. In other words, our global sales are evenly balanced.”

Topics: daimler, sales

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