By Nick Carey
LONDON (Reuters) – Daimler AG’s truck unit aims to cut costs and boost profits across all regions by 2025 as it goes “all in” on electric and hydrogen fuel cell trucks, the company said during an investor presentation on Thursday.
“Both technologies (electric and hydrogen) will be needed,” Daimler Truck CEO Martin Daum said. “And we intend to lead the way in both technologies.”
Later this year German carmaker Daimler plans to spin off Daimler Truck, the world’s largest truck and bus maker, as it seeks to increase its investor appeal as a focused electric, luxury car business.
Daimler Truck will cut costs and capital expenditure while focusing on maintaining double-digit margins in North America, CEO Daum said the truck maker will relentlessly target higher profits in both Europe and Asia.
By 2025 Daimler Truck is targeting margins above 10% under favourable market conditions, and between 6% to 7% under poor market conditions, executives said.
Daimler Truck also plans to cut personnel costs by 300 million euros ($366 million) by 2022.
($1 = 0.8196 euros)
(Reporting by Nick Carey; editing by Jan Harvey and Jason Neely)
