Photo: Neil Abt/Fleet Owner
Daum

Daimler: Truck sales outlook positive, but tariffs a cause for concern

June 12, 2018
Even with Daimler Trucks North America having practically sold out all of its production slots for this year, it is worried about a possible trade war.

Even with Daimler Trucks North America (DTNA) having practically sold out all of its production slots for this year and expressing optimism about 2019, the head of Daimler AG’s global commercial vehicles division expressed concern over potential fallout from a global trade dispute.

“The true solution is that we become more and more global. All problems we face are global problems,” Martin Daum said in response to a question during a press briefing following the unveiling of the all-electric eCascadia and eM2 truck models.

Earlier this month, the United States upset allies by implementing tariffs on steel and aluminum. That sparked retaliatory measures by the European Union, Canada, and Mexico. It also has raised the prospect of a wider trade war.

Daum said the result of tariffs and a trade war would be “citizens of those countries suffering by paying more.” He added that he does not think in terms of “national borders,” and is “always committed to the countries we work in.”

In looking specifically at North America, he noted Daimler has a “huge Mexican base” that includes both the selling of trucks to fleets and manufacturing vehicles for export.

Roger Nielsen, president and CEO of DTNA, said that pricing would not be altered for existing orders, but that tariffs would increase production costs.“Those costs eventually … find their way through the whole value chain,” he said.

Nielsen was hesitant to make any predictions on whether this could hurt truck sales moving forward, since “freight needs to be moved” and many fleets simply need to replace their older equipment.

With healthy backlogs at its factories, Nielsen noted DTNA is actively monitoring the supply chain, and working to identify any bottlenecks to ensure suppliers “are keeping pace with customer demand.”

Daum also stated that strong truck sales in 2018 extend beyond North America and Europe. He cited Indonesia and India as two markets of particular strength, while Brazil and Turkey are among the areas still struggling.
 

About the Author

Neil Abt

Neil Abt, editorial director at Fleet Owner, is a veteran journalist with over 20 years of reporting experience, including 15 years spent covering the trucking industry. A graduate of American University in Washington, D.C., he began his career covering sports for The Washington Post newspaper, followed by a position in the newsroom of America Online (AOL) and then both reporting and leadership roles at Transport Topics. Abt is based out of Portland, Oregon.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

The Future of Mirrors is Closer Than it Appears

Why Mirror Camera Systems are the next step for fleet safety and exoneration While many commercial trucking cameras are similarly marketed, they are not all created equally. The...

The 20:1 Solution: Unlocking the ROI of a Modern Asset Maintenance Solution

Discover how modern fleet maintenance software can drive step-change improvements in shop efficiency, cost control and vehicle productivity, along with how to calculate the ROI...

Digital and AI Solutions for Rideshare Safety

Anyline’s study, “How Digital AI Solutions Can Enhance Rideshare Safety,” reveals rideshare drivers are overly confident in their tire knowledge, risking passenger safety. Download...

Introducing the World’s First Mobile Tire Tread Scanner

Anyline’s innovation allows accurate tire tread measurement via any mobile device, ensuring legal compliance for fleets. Read more and find out how you can cut operating costs...