A booming global truck market helped DaimlerChrysler boost commercial vehicle sales 42% in 2004 to a record 712,200 units, the German-American group said on Thursday, according to Reuters.
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It also stuck to its guidance that 2004 operating profit at the division – the world’s biggest maker of trucks and buses – would rise substantially, despite a hefty third-quarter charge for addressing quality issues at its Japanese unit Fuso, the report added.
Excluding sales of Mitsubishi Fuso Truck and Bus Corp (Fuso), which it has consolidated since April 2004, sales rose 19% to 594,100 units, Reuters said.
“Our goal now is to maintain our positive earnings situation over the long term,” division head Andreas Renschler told Reuters, adding: “To this end, we are addressing the current challenges in the commercial vehicle sector by, for example, improving systems that enhance active safety and working on the further development of alternative drive systems.”
The report said the firm’s sales rose around the world, but by less than the 44% seen to the end of November – turnover in western Europe advanced to 274,400 units from 249,500, in North America to 177,100 from 134,200, and in Latin America to 57,600 from 40,200.
The Mercedes-Benz truck business in Europe and Latin America boosted sales 24% to some 137,400 units with the rollout of the second-generation Actros truck, its flagship, Reuters said.
DC’s North American Freightliner trucks increased sales 28% to 152,400 vehicles while Fuso, which has been battling negative publicity over defect cover-ups under previous management, sold around 118,100 vehicles last year, and the biggest increases were outside of Japan, in Southeast Asia and the Middle East, the report said.
A spokesman could not supply Reuters with comparative figures for Fuso sales, but said gains outside Japan had offset a fall in domestic sales.
The news agency noted that DaimlerChrysler took a €405 million charge in the third quarter to cover quality problems at Fuso and is now in talks with Mitsubishi Motors Corp, which still has a 20% stake in Fuso, about recouping its costs.
Reuters said the spokesman reiterated guidance given with third-quarter results that the division would see a significant improvement in 2004 operating profit, thanks to higher sales and cost-cutting – it generated 2003 operating profit of €855 million.
DaimlerChrysler buses and coaches grew sales 16% to 32,800 buses of the Mercedes-Benz, Setra and Orion brands, while sales of vans went up 13% to 260,700 vehicles, the report added.
