Daimler Truck to go public on December 10, expects margin parity for electric vehicles

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By Victoria Waldersee

BERLIN, Nov 11 (Reuters) – Daimler Truck will be spun off from Daimler on Dec. 10, the commercial vehicle maker said on Thursday, outlining cost-cutting measures it hopes will boost profit margins to double-digit percent by 2025. .

The truckmaker, which aims to sell 60% electric models by 2030, has certain margins that will remain the same or grow as it transitions to electric vehicles, CFO Jochen Goetz said in a presentation.

Driving an electric vehicle would cost customers the same or less than a diesel alternative in the long run due to lower fuel costs, CEO Martin Daum reasoned, even though electric models are still priced much higher up front.

Daimler Truck’s first battery-electric truck, the eActros, costs about three times its diesel equivalent.

“The pennies per mile is the key question,” Daum said. “The biggest intangible is the price and cost of energy and CO2.”

The commercial vehicle maker, the world’s largest but currently reporting lower margins than its rivals, is targeting profit margins of 9% in Europe, 10% in Asia and 12% in North America by 2025, according to a statement. issued prior to presentation.

Cutting costs, raising prices and focusing on heavy duty vehicles will bring you closer to that goal, board members said Thursday.

A planned business-wide fixed cost reduction of 15% from 2019 levels by 2025 is progressing faster than planned and will likely be achieved by 2023, the heavy-duty vehicle maker said.

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