DAIMLER Truck AG is aiming to separate from its parent company and stock market listing by the end of this year and, in addition to a financial shake-up, plans have been unveiled by the company to form partnerships for fuels development and outsourced engine building.
CEO Martin Daum confirmed that standalone Daimler will have a huge electric future, with partnerships already in place for advanced battery development as well as high-speed charging and hydrogen fueling infrastructures.
In addition, and in a break away from traditional inhouse diesel engine building, Daimler will seek more partnerships for heavy-duty engines similar to the current tie-up with Cummins for medium duty trucks.
“But it is on the financial side that we will be making the most immediate decisions,” said the Daimler boss. “We will reset profitability and every region must be competitive. We are willing to take hard decisions to lower our break-even point and raise our performance.
“We will aim for a double digit return on sales by 2025, as well as reducing our fixed expenditure which will include reducing personnel costs by 300 million Euros next year. Conversely we plan to grow aftermarket and financial services revenues from a current 30% to 50% in 2030.”
Daimler confirmed that development spending on conventional powertrains will be reduced and redirected to zero emission technologies by 2025.
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