It seems that Daimler Truck, the world’s largest commercial vehicle maker, is doubling down on zero emission trucks in its native Europe with some ambitious growth plans announced for electric trucks in the Continental market.
the company last week announced the ambitious growth strategy, which it has dubbed “Stronger 2030,”, including its growth plans for its zero-emission vehicle (ZEV) footprint in Europe.
The European “pivot” for ZEVs came as executives talked about a more favourable regulatory environment and incentives compared with the U.S truck market, where Daimler is a dominant force in diesel powered heavy trucks..
The move by Daimler apparently doesn’t come without a cost.
As part of what it calls its “Costs Down Europe strategy”, Daimler announced a headcount reduction of around 5,000 in its German workforce as well as moving to drive down costs in other areas, including with a combination of material costs, research and development, operations and sales.
the company says the cuts are part of a $AUD 1.8 billion (€1 billion) cost savings goal by 2030.
Daimler claims this is the largest and most holistic efficiency program ever undertaken by the company.
For Mercedes-Benz and its electric eActros 600 cabover, the focus is on turning potential into profit, following strong results in 2023 and recent news that Amazon Europe is starting to purchases more ZEV trucks.
Mercedes hopes to grow its unit sales of its zero-emission vehicles in Europe to 25,000 units by 2030.
In North America Daimler Trucks (DTNA) continues to be a core profit driver within the global Daimler Truck Group. and while DTNA has developed and markets an electric heavy duty Freightliner eCascadia, its diesel Cascadia remains the dominant player in the US heavy truck market as market leader with a whopping 42 per centmarket share.
Daimler Executives cited ongoing uncertainty over electric vehicle (EV) and ZEV incentives and recent regulatory rollbacks in the U.S. market as reasons behind its European ZEV pivot.
Questions still remain in. the USA over the status of California Air Resources Board rule making and clarity on what direction the Environmental Protection Agency wants to take.
NOx emission limits remain another topic under consideration and for a large truck maker, there isn’t a dial you can turn to lower NOx limits; the engines and NOx filtration systems are planned years in advance.
A lack of EV charging infrastructure also is a significant headwind for electric truck sales in the US.
Daimler said that it has seen EV progress in markets such Denmark and Germany, where total cost of ownership paired with shorter distances is making its EV trucks offerings more attractive compared with the North American market, where longer distances prevail.
