Daimler Truck Slashes Projections Due to US Tariff Turmoil
Daimler Truck adjusts expectations due to uncertainties surrounding potential US tariffs. - Daimler Truck reducing forecast due to US customs duties impacts
Let's dive into the latest shake-up in the commercial vehicle industry, with Daimler Truck dialing back its annual forecast due to the tempestuous uncertainties surrounding US tariffs. The bigwig behind the wheel, CEO Karin Radström, has revealed a rather gloomy forecast—fewer truck sales, less revenue, and falling profits, as shared by the DAX-listed entity based in Leinfelden-Echterdingen.
It's not looking rosy for North America, where Daimler Truck is banking on a disappointing 155,000 to 175,000 truck sales this year—a significant drop from their initial expectation of 180,000 to 200,000 units. The big-league heavy-duty truck market on the highway is also feeling the heat, as Daimler Truck tweaks its overall outlook.
When it comes to the US, Daimler Truck packs a mean punch, thanks to its aces, Freightliner, and Western Star. As the undisputed champ in heavy-duty trucks, this segment makes up the bulk of their earnings. Now, the company predicts a total of 430,000 to 460,000 units sold, which is a noticeable decrement from their previous forecast of 460,000 to 480,000 units.
Radström's revised estimates for revenue and profit paint a mixed picture. She now expects revenue of 48 to 51 billion euros in the industrial business by 2025, down from the initial target of 52 to 54 billion euros. The revised operating profit is expected to range from a downturn to a 5% increase compared to last year, contrasting the previous target of a 5 to 15% increase.
As the US tariff saga continues, here's a quick recap of the impact on Daimler Truck:
- Between 155,000 to 175,000 units in North America sales this year (a decline of over 10%) [2][3][4].
- A dip in sales in the first quarter of 2025, with 38,992 units sold compared to 46,229 in the same period of 2024, yet earnings before interest and taxes increased by 7% YoY [2].
- Production disruptions, with short-term production suspensions instead of significant layoffs [2].
- A downward adjustment in global sales forecast, with expected sales of 430,000 to 460,000 units [4].
Despite the challenges, Daimler Truck expects their North American biz to stay in the black, with a projected return on sales between 11% and 13% for the entire year [4]. Buckle up, folks, as the US tariff rollercoaster ride continues!
- Keywords: Daimler Truck, Commercial Vehicles, North America, Tariffs, Leinfelden-Echterdingen
- Industry: Automotive
- Impact: Reduced sales forecast due to US tariffs, dip in Q1 2025 sales, short-term production suspensions, revised global sales forecast, projected North American profitability.
In light of the US tariff-induced instability, Daimler Truck has revised its community policy to prioritize cost-effectiveness and adaptability. Given the downturn in sales forecast, the company is also considering employing a more flexible workforce through vocational training programs, enabling them to adjust their manpower based on the market demand in the automotive industry. With the reduced sales projections, Daimler Truck is examining potential collaborations with other manufacturers in the transportation sector to share resources and financial burdens, aiming for long-term sustainability in the volatile market conditions.
