Mercedes projects 10% growth for the truck market – 01/14/2022

Closing the visit to the Brazil this week, Karin Radström, world head of the Mercedes-Benz truck business, said yesterday that the ongoing restructuring in the country’s operation is progressing with satisfactory results. She made it clear, however, that the work was not yet complete.

Presented in May, the strategic plan by Daimler, the parent company of Mercedes, to eliminate losses in Brazil has among its objectives to reduce dependence on imported parts and increase exports, so that the company is less exposed to the more expensive exchange rate, together with cost cutting, for example, a 10% reduction in the payroll of administrative departments.

Yesterday, Karin assessed that, counting on the resumption of production after the initial shock of the pandemic, factories in Brazil are managing to improve the balance between imports and exports, thus softening the exposure to the exchange rate.

“We’ve made a lot of progress and clearly there has been an improvement in the situation. But we still have to take more steps and keep working hard,” said the executive. “I’m very optimistic, but we still have a lot of challenges and we haven’t finished the restructuring yet,” he added.

Daimler Truck’s goal is to be, by 2025, an automotive group in which the profit margin is measured in the double digits. The recovery of financial results in businesses both in Brazil and Europe is at the heart of this objective.

For the management of the automaker in Brazil, the truck market will continue to rise this year, although the increase in interest rates may postpone decisions to expand the fleet of carriers.

If MercedesBenz forecasts are confirmed, truck sales in Brazil, in the sum of all brands, will reach something around 140 thousand units, up 10% over 2021. Confidence is based on heated orders from agribusiness, given the need to transport the record grain harvest, in addition to the demand coming from e-commerce, civil construction and mining. The two factories of the automaker in the country, located in São Bernardo and Juiz de Fora (MinasGerais), are operating in three production shifts.

Roberto Leoncini, vice president of sales and marketing for Mercedes-Benz’s truck and bus business in Brazil, considered, however, that this growth will depend on the availability of parts on the assembly lines. “We need global logistics to work and help us”, commented the executive, anticipating another year of crisis in the supply of electronic components, a bottleneck responsible for stoppages of automakers around the world.

This year, Mercedes-Benz concludes the R$ 2.4 billion investment program started in 2018, and the new president of the automaker in Brazil, Achim Puchert, said that the company will wait for the results of the investments already made before leaving. to a new cycle.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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