[Introduction to Commercial Vehicle Network]At the beginning of 2020, the global commercial vehicle leader Daimler released an official announcement on its official website that sales are expected to decline, reflecting that the risks in the commercial vehicle market are intensifying, and at the same time, it has made measures to improve profitability. Various measures are more intriguing. Written in front: Recently, it has coincided with the annual meeting season of China's truck companies, and there is a bit of a Great Leap Forward atmosphere. The most common news headline is "×× Company, Challenges ×× Thousands of Vehicles", which is full of excitement and optimism. . Affected by the continued high growth of China's truck market, many car companies have set extremely challenging goals in 2020. But are there no risks as the market grows? Does total growth mean that every company can achieve growth? While purely pursuing sales targets, which company has formulated profit indicators? At the beginning of 2020, the global commercial vehicle leader Daimler released an official announcement on its official website predicting a decline in sales, reflecting that risks in the commercial vehicle market are intensifying, and its various measures to improve profitability are even more intriguing. . On January 3, 2020, Daimler's official website announced that due to the weak market environment since the summer, Daimler Trucks' sales in 2019 declined compared with the same period in 2018. As of November 2019, Daimler's truck brands A total of 446,800 units were sold. Daimler's Mercedes-Benz, Fuso, Freightliner, Western Star, Thomas Birt and Bharat-Benz dropped 4% year-on-year (sales volume from January to November 2018 was 466,900). Daimler will Accurate sales figures for 2019 were announced at the annual press conference on February 11, 2019. Daimler Truck AG's annual press conference is scheduled for February 18, 2020. Daimler Trucks expects that in 2020, truck sales wi
[Introduction to Commercial Vehicle Network]At the beginning of 2020, the global commercial vehicle leader Daimler released an official announcement on its official website that sales are expected to decline, reflecting that the risks in the commercial vehicle market are intensifying, and at the same time, it has made measures to improve profitability. Various measures are more intriguing. Written in front: Recently, it has coincided with the annual meeting season of China's truck companies, and there is a bit of a Great Leap Forward atmosphere. The most common news headline is "×× Company, Challenges ×× Thousands of Vehicles", which is full of excitement and optimism. . Affected by the continued high growth of China's truck market, many car companies have set extremely challenging goals in 2020. But are there no risks as the market grows? Does total growth mean that every company can achieve growth? While purely pursuing sales targets, which company has formulated profit indicators? At the beginning of 2020, the global commercial vehicle leader Daimler released an official announcement on its official website predicting a decline in sales, reflecting that risks in the commercial vehicle market are intensifying, and its various measures to improve profitability are even more intriguing. . On January 3, 2020, Daimler's official website announced that due to the weak market environment since the summer, Daimler Trucks' sales in 2019 declined compared with the same period in 2018. As of November 2019, Daimler's truck brands A total of 446,800 units were sold. Daimler's Mercedes-Benz, Fuso, Freightliner, Western Star, Thomas Birt and Bharat-Benz dropped 4% year-on-year (sales volume from January to November 2018 was 466,900). Daimler will Accurate sales figures for 2019 were announced at the annual press conference on February 11, 2019. Daimler Truck AG's annual press conference is scheduled for February 18, 2020. Daimler Trucks expects that in 2020, truck sales will decline significantly as market demand, which has continued to rise in recent years, further returns to normal, especially in core markets such as NAFTA, Europe and Japan. Daimler Trucks will give a more precise forecast of trends in core markets when it releases full-year data on February 11, 2020. At the same time, Daimler Trucks is preparing to cope with increasing investment and cost pressures in the next few years, including the development of new technologies such as truck and bus electrification, autonomous driving, and connectivity, which will require continued investment. Martin Daum, Chairman of the Board of Management of Daimler Truck AG, said, “The decline in important markets such as Europe and North America in the second half of the year is faster than expected. We already started preparing for this in the summer and immediately adjusted our production capacity. However, We are not at all satisfied with our return on sales in 2019. Therefore, we have taken extensive structural measures to increase our margins to at least 7% by 2022. In 2020, we will continue to invest in future technologies Under the circumstances, we will significantly improve our cost position." Various measures to comprehensively improve profitability. Under the above-mentioned market conditions, by taking various measures, Daimler Trucks and Buses expects that the return on sales of its current business will be in 2019. It will reach 6%, at least 5% by 2020 and at least 7% by 2022. Especially in the U.S. and European markets, in addition to short-term adjustments to production capacity in response to reduced demand, the company has taken many structural measures to improve medium-term profitability. One of the priorities is to increase the profitability of Mercedes-Benz Trucks in Europe and Latin America, most importantly reducing variable costs by 250 million euros and personnel costs by 300 million euros by the end of 2022. In Brazil, the number of vehicle platforms sold will be significantly reduced, while the remaining product portfolio will be revamped to restore profitability. In Japan, the sales and after-sales network will be organized more efficiently. NAFTA and Europe: Sales fell sharply at the end of 2019 Daimler Trucks' most important NAFTA and European truck markets returned to normal levels in the second half of 2019 after entering a phase of strong growth in 2018. The process went faster than expected. Daimler Trucks sales in NAFTA actually increased by 8% to 187,400 units (January-November 2018: 172,700 units). However, single-month sales in November fell sharply by 16% compared with the same period last year. In Europe, sales from January to November 2019 fell 5% compared to the same period last year, reaching 72,400 vehicles. Brazilian market: Despite sales growth, profitability remains unsatisfactory In Brazil, Daimler Trucks significantly increased sales of Mercedes-Benz Trucks in a recovering market, selling around 27,000 trucks, 40% more than in the same period last year (19,300 vehicles from January to November 2018). However, despite several measures taken since 2016, Mercedes-Benz Brazil's profitability remains unsatisfactory. Therefore, the material and personnel cost reduction actions initiated by Mercedes-Benz Trucks will not only affect the European business unit, but also its subsidiary Mercedes-Benz Brazil. In addition, with the launch of the new Actros trucks for the Brazilian market, Mercedes-Benz Trucks will reduce the number of vehicle portfolios from eight platforms to three to reduce business complexity and costs. Asian Market: Sales in Indonesia, India, and Japan Decline In Asia, Daimler Trucks’ important markets Indonesia and India both experienced significant shrinkage compared to last year. From January to November 2019, a total of 121,900 vehicles were sold, with unit sales down 18% year-on-year (147,900 vehicles from January to November 2018). Among them, sales in the Indonesian market dropped by 40%, from 57,400 vehicles in January to November 2018 to 34,500 vehicles in the same period in 2019. In India, Daimler Trucks sold 13,200 Bharat Benz-branded trucks in January-November 2019, 35% less than the same period last year (20,500 units in January-November 2018). By the end of November 2019, Daimler Trucks had sold approximately 38,200 Fuso brand vehicles in the Japanese market, a decrease of 4% from the previous year (40,000 vehicles from January to November 2018).
