DaimlerChrysler expects a flat market for trucks and buses this year, the head of its commercial vehicles unit reportedly said on Monday, but he would not rule out job cuts as a global truck boom wanes.
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“I expect stable demand globally,” Andreas Renschler told Reuters, saying tougher emission standards in the European Union and United States and new safety rules could bring forward some orders for commercial vehicles this year.
The flourishing trucks business could start to slow down by next year at the latest, and Daimler’s task is to smooth out results over the entire business cycle, Renschler reportedly said, which is why he could not rule out job cuts.
In Germany any cuts would be limited to workers who do not have long-term contracts, he told Reuters. Around 800 such staff work at its plant in Woerth. Other German staff have flexible working times so that they work more at busier times.
Demand in North America could plunge by up to 40% from 2007, he added, which could lead to layoffs.
According to Reuters, Renschler was speaking at an event to unveil the new Mercedes Sprinter van, which cost around EUR1.8bn (US$2.18bn) to develop and produce. It goes on sale in late March.
The report said the Sprinter is built at two plants in Germany and Daimler spent EUR550m to expand the paint and body shop at Duesseldorf and EUR300m in new paint and body shops for the Ludwigsfelde plant.
New Sprinters will also be assembled in South Carolina for the North American market, Reuters added.
DaimlerChrysler sold 28,100 Sprinters in the NAFTA zone last year under the Mercedes-Benz, Dodge and Freightliner brands, up 49% from 2004, the report added.
