Traton Sets Five-Year Targets

MUNICH (Reuters) – Volkswagen’s truck unit Traton set out five-year targets during its Capital Markets Day on Tuesday, anticipating benefits from the shift towards electrification and plans to increase the share of battery electric vehicles in its sales.

European truckmakers need to boost the percentage of electric trucks in their sales by 50% to meet the EU’s carbon emissions reduction targets by 2030, or face severe penalties.

Traton’s CEO, Christian Levin, stated, “Our brands have future-proofed their product portfolio by investing in the electrification of commercial vehicles.”

Truck manufacturers are urging governments to expedite the development of charging stations across Europe to create a profitable environment for e-trucks.

The group expects its return on sales to rise to 9-11% by 2029 from the current 8-9%, with revenue anticipated to grow by 20-40% in the coming five years.

Traton, which owns the Scania, MAN, and Volkswagen Trucks and Buses brands, plans to fully repay its debt during this period.

Additionally, it aims to enhance its market share in North America, a crucial sales area, and manage its business more efficiently, beginning with renaming its US unit Navistar to International Motors as of Tuesday.