Daimler’s truck division plans to boost sales, market share and profit in 2013, relying on its expansion in Brazil and other emerging markets.
“The year 2013 will be challenging on the whole and business has been rather sluggish in the first few months,” said Andreas Renschler, head of the trucks unit, at a press conference today in Woerth, Germany. “However, in the second half of the year the markets should gather momentum.”
Analysts predict that auto demand in Brazil will go up 10% in 2013, which will help automaker make up for the loss in Europe which is to decline 5% and North America, which is also expected to drop between 5% and 10%. Currently, Daimler, which is the largest maker of commercial vehicles in the world, is still behind Volvo and Scania in profitability. To close the gap with its rivals Daimler’s truck division started a program in June aimed at cutting costs by 1.6 million euro by the end of 2014.
“The scope for market share gains is limited,” said Marc- Rene Tonn, a Hamburg-based analyst with Warburg Research. “Mercedes might win a little on new models, but I don’t expect great leaps.”
Daimler has two plants in Russia in a JV with Kamaz, which is the market leader for heavy trucks in this market. In 2008 Daimler purchased a 10% stake in Kamaz and now owns 11% directly.