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New CEO must adapt Daimler Truck to weaker market, chairman says

investing.com 05/09/2024 - 10:59 AM

Daimler Truck’s Future Outlook

STUTTGART (Reuters) – Daimler Truck expects a further slowdown in demand for commercial vehicles, and its new CEO must take measures to adjust for that, the German company’s Chairman Joe Kaeser said on Thursday.

“Our profitability is not yet where competitors are; that has to change in the medium to long term,” Kaeser told a press conference after Karin Radstrom was announced as the company’s next CEO late on Wednesday.

He did not specify what measures Radstrom might need to take.

The truck and bus maker appointed Mercedes-Benz lorry brand head Radstrom as its CEO effective Oct. 1, shortly after cutting its revenue guidance and reducing working hours at its German plants due to weak demand in Europe and Asia.

Her predecessor, Martin Daum, will retire as planned but will remain on the management board until the end of this year.

Daimler Truck faces subdued demand after chip shortages and other parts shortages, which have pushed up production costs. The industry also grapples with challenges to reduce pollution from commercial vehicles.

Radstrom, the first woman to lead the world’s largest heavy truck producer, hails from Sweden’s Södertälje, home to Europe’s most profitable truck maker, Volkswagen’s Scania, where she spent around 20 years starting as a marketing trainee. She joined Daimler in 2021.

“I think with Ms. Radstrom we have someone who is extremely customer-focused, who is well-versed … and knows the industry well thanks to her experience outside the company,” Kaeser stated.




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