Daimler’s truck division had its most profitable year last year, despite a 10% decline in the US and Japan.
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According to Automobilwoche, Daimler Truck division chief executive Andreas Renschler also made it clear that its US brand Freightliner and the Japanese brand Fuso have not gone into the red, despite weak domestic markets.
The division’s success was due to the strategy of sharing parts and achieving scale economies to keep costs down as much as possible. In addition manufacturing operations have become so flexible that they can respond early to any downturn in the economic cycle.
The company reportedly has a lot further to go with engine and component sharing. It expects more substantial savings over the next 10 years as new engines and models come on stream.
While further growth in established markets is a central target, Daimler Trucks is looking more at emerging markets.
The division has agreed a joint venture with the Indian Hero Group, but in China, a planned joint venture with Foton has been repeatedly delayed by changes in government legislation and policy. Many of Daimler’s competitors are doing better than Daimler in emerging markets , including eastern Europe. One of the division’s challenges, said Automobilwoche, is to carve out a role for the Fuso brand in Asian markets.
