Daimler Truck outlines plans for future at first Capital Markets Day
This week, Daimler Truck held its first Capital Markets Day as a separate entity in Boston, Massachusetts, where it projected robust global revenue growth of 40-60% between 2025 and 2030.
According to the company, its financial strategy for 2030 is driven by technology plans, an increase in service revenue, and the introduction of autonomous vehicles to the market. The company's technology strategy is based on four global platforms: battery, hydrogen, diesel, and software, it told investors.
"Daimler Truck is prospering. We are increasing our 2023 forecast. Martin Daum, chairman of the board of management at Daimler Truck, stated that the company is on schedule to achieve its 2025 goals.
"By 2030, we are prepared to take Daimler Truck to the next stage...Our adaptable technology strategy allows us to not only traverse the historic transformation of our industry, but also seize all associated opportunities. Daimler Truck is transforming for sustainable growth, to the benefit of its employees, customers, and shareholders.
Daum stated that Daimler enjoyed a robust first quarter and an increase in unit sales in the second quarter, causing it to raise its guidance for the year. In the second quarter, worldwide unit sales increased by nine percent compared to the same period last year. North America saw an increase of 14.7%.
Jochen Goetz, member of the board of management and chief financial officer of Daimler Truck, stated, "Beyond 2025, we see multiple growth opportunities in our industry, and we are prepared to capitalize on them."
Daimler has stated that, as the trucking industry decarbonizes, it will accomplish sustainable transportation through two technology fields: power to drive, which consists of the propulsion system, and intelligence to drive, which is focused on electronics and software.
Power to drive entails providing consumers with the lowest total cost of ownership regardless of the energy source used for propulsion, be it diesel, battery, or hydrogen. Intelligence to operate software is of superior quality and can be personalized.
On the medium-duty side, Daimler is committed to a "non-captive procurement" strategy, whereas its heavy-duty engines will be manufactured in-house. The truck manufacturer is persuaded that only a combination of battery-electric and hydrogen-powered propulsion will enable it to reach a future with zero emissions. In the second half of this decade, the company will produce its first fuel cell-powered vehicles as part of its joint venture with Volvo Group.
It is also contemplating hydrogen combustion engines for applications requiring high power, if regulations permit the low-carbon alternative.
Daimler Truck will begin rolling out new software features to improve connectivity, fleet owner data access, predictive maintenance, and over-the-air updates beginning in 2019. All of these will be supported by a more robust computer architecture.