Daimler expects unit sales increase in 2013 for commercial vehicles

India key to expanding segment in Asia & Africa

2014/01/07

Summary

Daimler Commercial Vehicle Sales
Note:
1)Goals for Daimler Buses and Mercedes-Benz Vans for 2020 are not released.
2)Values for Daimler Trucks in 2012-2013 do not include vehicles of BFDA (Auman Trucks).

 Daimler has three divisions which focus on commercial vehicles: Daimler Trucks, Daimler Buses, and Mercedes-Benz Vans.There were 560,000 commercial vehicles sold during the period from January to September 2013, a 2.5% increase year-on-year. The Trucks, Vans, and Buses divisions each recorded an increase in unit sales year-on-year for the same period, and expect an increase in unit sales in 2013 full-year.
 The Daimler Trucks will advance its growth strategy “Daimler Trucks Number One” with the aim of achieving sales of 700,000 units by 2020. As part of the strategy, the company will produce FUSO brand trucks targeted to the Asian and African market in its Indian subsidiary, Daimler India Commercial Vehicles, and aims to sell 290,000 units by 2020.
 The Mercedes-Benz Vans will build production and sales networks for the Sprinter in Russia, South America, and China as well as Europe. The vehicle is positioned as the most important model in the division.

The Daimler Buses will strengthen its bus business in India and China with the aim of achieving sales of 40,000 units in 2015.


Related Reports:
Daimler: new models boost car sales to record highs for 2013 (Nov. 2013)
European CV Manufacturers: Adopting ‘Euro 6’ and turning to emerging markets (Oct. 2013)


Targets of the Daimler commercial vehicle divisions

Daimler Trucks * In accordance with its growth strategy "Daimler Trucks Number One (hereinafter DT#1),"
  Daimler Trucks will expand its model range with the aim of achieving sales of 500,000 units in 2013 and 700,000 units in 2020.
* As a part of DT#1, the division aims to sell a total of 290,000 units by 2020, by exporting
   FUSO brand to Asian and African markets and Bharat Benz brand trucks in India.
* Daimler Trucks aim to achieve a Return on Sales (RoS) of 8%.
Mercedes-Benz Vans * The "Vans Goes Global" strategy aims to increase unit sales by expanding model ranges,
  modifying the models according to the market needs, strengthening sales, and advancing
  local production. Daimler has started local production at the Argentine Plant since 2007
  and at the Chinese Plant since 2011. The division started production at a Russian plant of
  its affiliate company, GAZ, in June 2013.
* In September 2013, Mercedes-Benz Vans prioritized the Sprinter as its most important
   model. The division will discontinue the collaboration with VW in 2016, and will allocate
   the existing production capacity for the VW brand vans to the production of the
   next-generation Sprinter. (VW Crafter is presently produced at an annual capacity of
   40,000 units)
* To achieve sales of 400,000 units in 2015 based on the "Vans Goes Global" strategy.
* To reduce costs with the aim of increasing profits by EUR 100 million.
Daimler Buses * To achieve sales of 42,000 units by 2015. (2012: 32,000 units)
* To implement the cost reduction plan/growth strategy with the aim of achieving a return
   on sales (RoS) of 6%.
* To achieve EBIT of EUR 100 million in 2013 and of EUR 200 million in 2014.
* To strengthen sales by investing in production sites in Germany, Turkey, and Czech, and
   by rolling out models for emerging and existing markets.
* To enhance production in India and strengthen the sales network for Evo Bus in Russia.
   To strengthen the truck/bus business in China by establishing a new company.

 

 


Highlights of each region

 Daimler will produce BharatBenz brand trucks and trucks based on the Fuso brand for the Asian and African markets in India, and establish sales and production networks for commercial vehicles in China. Also in regions such as Brazil and Turkey, the company will invest in new products, Research and Development (R&D) and in establishing IT centers.

China/India: Establishes sales and production networks and rolls out new brands

 In November 2013, the Daimler Trucks Asia announced its plan of investing EUR 300 million during the period from 2014 to 2018  as a part of the Daimler Trucks growth strategy DT#1. The division aims to increase sales in the Asian and African markets, where potential sales are expected. In India, Daimler and Mitsubishi Fuso will produce "FUSO" brand vehicles to be exported to the Asian and African markets. In China, Daimler will enhance production and sales networks for the truck and van business.

 

India: Rolls out brands for the Asian and African markets

Rolls out the FUSO brand to the Asian and African markets  Daimler and Mitsubishi Fuso announced the "FUSO" brand trucks for Asia and Africa to be produced in India. A Daimler's subsidiary in India, Daimler India Commercial Vehicles (DICV) started production of the trucks at its Chennai Plant in April 2013 and launched them in June. DICV produces heavy-duty trucks the"FJ," "FO," and "FZ," and medium-duty trucks the "FA" and "FI." The five models will be produced at the DICV's Chennai Plant, at the same production line as BharatBenz brands, trucks exclusively produced for the Indian market. The vehicles, including models based on BharatBenz brands, will be launched for Asian and African markets as a FUSO brand in Bangladesh, Zambia, Kenya, and Brunei in 2013, and in Indonesia, Thailand, and Malaysia in 2014.
 Daimler also set out the Asia Business Model in May 2013. In this strategy, Daimler will use DICV and Mercedes-Benz Research and Development India for the integration and expansion of its product lineup for Asian markets and the development in Asia. Mitsubishi Fuso and DICV will implement joint procurement, and the Kawasaki Plant and the Chennai Plant will be positioned as the two major production sites. The Chennai Plant will produce the FUSO brand trucks to export the brand trucks to the Asian and African markets with intense price competition.
 Based on the growth strategy Daimler Trucks No.1, the Daimler Truck sector aims to achieve global sales of more than 500,000 units in 2013 and more than 700,000 units in 2020. DICV aims to achieve the sales of 290,000 units in 2020 as the Asian truck department.
Transfers the bus sector to DICV  In April 2013, Daimler transferred the bus sector to DICV, formerly assigned to Mercedes Benz India. Daimler announced that it will produce the buses at the Chennai Plant and sell them through the sales network of the BharatBenz brand.

 

China: Unifies the local sales/service networks and establishes R&D Center

Daimler Trucks and Buses China established  In April 2013, Daimler established "Daimler Trucks and Buses China Ltd. (DTBC)" in Beijing as a new subsidiary in charge of Daimler Trucks and Daimler Buses. The forerunner of this new company was Daimler Trucks China, under the umbrella of a Daimler's subsidiary "Daimler Northeast Asia Ltd." The company was engaged in the truck business in China. Daimler will provide services such as telematics and financial services in the new company, and also expand its bus business in China. Daimler announced that this establishment would enable the company to provide better products and services meeting the local customer needs.
Unifies the sales and service networks into Fujian Benz  In April 2013, Daimler unified the sales and service networks for imported vehicles and locally produced vehicles into a joint venture of Daimler and Fujian Motor, "Fujian Benz Automotive Corporation (Fujian Benz)." Viano, Vito, and Sprinter vans are produced and sold at its local plants. The annual production capacity is 40,000 units. It will import the models currently produced at plants outside of China such as Vario and Citan to the Chinese market.
Fujian Benz opened Product R&D Center  In April 2013, Daimler opened the R&D Center of Fujian Benz as the only overseas development base for vans. Daimler invested a gross amount of EUR 60 million. The center includes designing and calculation departments and facilities such as test facility for completed vehicles, parts and emission. The data is shared with the research and development headquarters of Daimler. The company plans to sell Mercedes Vans models modified to meet the needs of the Chinese market.

 

Other markets

Turkey Established IT Center  In November 2013, Daimler announced its plan to establish the IT Service Center in its base in Turkey, Mercedes-Benz Turk. Daimler plans to invest EUR 13 million for the next two years to develop products, applications and business solution and system software to be used for business in European, Middle Eastern, and African markets. In January 2013, Daimler had announced its plan to invest a gross amount of EUR 40 million in its Istanbul Plant and Aksaray Plant that produce commercial vehicles.
Russia Production of Sprinter in Russia  Daimler started the mass production Sprinter Classic, model based on former generation sprinter, in July 2013, at the Nizhny Novgorod Plant of a leading commercial vehicle maker, GAZ. The vehicle was launched in Russia in September. The two automakers co-invested in the production of the Sprinter Classic at EUR 100 million from Daimler and EUR 90 million from GAZ to renovate the production facilities and improve distribution. Welding, painting, and assembly lines are integrated in the production network.
Brazil Invests in the commercial vehicle sector  In October 2013, Daimler announced that it would invest BRL 1 billion in its commercial vehicle sector in Brazil to renovate the production facilities of the Sao Bernardo do Campo Plant and the Juiz de Fora Plant. Daimler will renovate the facilities to strengthen its research and development of new products and new technologies. Daimler positions Brazil as its most important market of Daimler Trucks.
U.S./
Mexico		 Personnel downsizing in the production sector  In January 2013, Daimler Trucks announced that it would reduce 1,300 persons in total in the commercial vehicle sectors of North America plants by April 1 due to the sluggish sales of the Freightliner brand. The number of persons actually reduced in April 2013 was less than announced―resulting in layoff of 570 persons.

 

 


Model plans

Daimler Trucks

Atego  The model is based on the new platform for medium-duty trucks, and was exhibited for the first time at the Commercial Vehicle Show held in April 2013 in England. The specified OM934 and OM936 engine series are all compliant with the Euro6 standard. The Gross Vehicle Weight (GVW) is 6.5t to 16t.
Arocs  This construction truck is based on the new platform designed for heavy-duty trucks, and was exhibited for the first time at the Commercial Vehicle Show held in April 2013 in England. The specified 175kW to 375kW engines are all compliant with the Euro6 standard. The Arocs adopts two- to four-axis axles and will be available in various body shapes, including dump truck, agitating truck, and tractor, to meet customer requirements flexibly. The GVW is 16t to 41t.

 

FUSO brand

 The FUSO brand will be produced by DICV in India and will be exported to Asian and African markets.

FJ  The FJ was developed based on the platform of Daimler Trucks' heavy-duty truck the Axor and is 25t in GVW. The truck features a newly developed 6.4L6S20 diesel engine with an output of 170kW to 205kW combined with a 6-speed or 9-speed MT. The vehicle is equipped with a 6x2 or 6x4 axle and is available in the form of cargo, dump, and agitating trucks.
FO  The FO is a derivative model of the FJ. The vehicle is equipped with an 8x2 or 8x4 axle. It is 31t in GVW. The FO is available in the form of cargo, dump, and agitating trucks.
FZ  The FZ is also a derivative model of the FJ. The FZ is a tractor available with a 4x2, 6x2, or 6x4 axle.
FA  The 4x2 medium-duty cargo truck, the FA, was developed based on the cabin of a light-duty truck the Canter and the suspension of a medium-duty truck the Fighter. It is mounted with a newly-developed 4D37 diesel engine and a 6-speed MT. The 3.9L engine has an output of 100kW (420Nm) to 125kW (520Nm), and is 9t in GVW.
FI  The FI is a FUSO brand 4x2 medium-duty truck. The FI is equipped with the same powertrain as the FA. The GVW is 12t or 16t. The FI is available in the form cargo, dump, and agitating trucks.

 

Mercedes-Benz Vans

Citan  The Citan is a model developed based on Renault's Kangoo as a result of the business alliance between Nissan and Renault. Following the 3,937 mm and 4,321 mm long models launched in April 2012, the new 4,705 mm long seven-seater model will be released in the market in the spring of 2014.
Sprinter  In October 2012, Daimler announced a new model mounted with an electronic control 7-speed AT and a CDI engine with a fuel economy of 6.3L/100 km compliant with the Euro6 emission standard. Daimler started receiving orders of the new Sprinter in June 2013. The automaker produces the vehicle at the Ladson Plant in South Carolina, U.S., the Gonzales Catan Plant in Argentina, and the Fuzhou Plant in China, as well as at the Dusseldolf Plant and the Ludwigsfelde Plant in Germany, based on the Vans Goes Global strategy.

 

Daimler Buses

Setra Top Class 500  The new Setra Top Class 500 announced in June 2013 is a coach available in three variations (12.5 m long, 13.3 m long, and 14.2 m long). The vehicle achieves a Cd value of 0.33 by improving the front and side designs of the body. The bus cabin also improved noise-reduction. It is mounted with the OM471 engine with a maximum output of 350kW to 375kW which is compliant with the Euro6 emission standard. The vehicle weight has been reduced by 150 kg compared with the new Setra Comfort Class announced in July 2012.
Tourismo K  Tourismo K is a coach for a small number of passengers announced in October 2013. It measures 10.3 m in length, 3.3m in height, and 2.6m in width. The wheelbase is 5m. It has 32 passenger seats. It features the OM936 engine with a maximum output of 260 kW (354hp) which is compliant with the Euro6 emission standard.

 

 


Daimler commercial vehicles unit sales and performances

 With regard to the prospect for the EBIT of the commercial vehicle sector in 2013 full-year, Daimler estimates that the Trucks sector will show a slight increase in the unit sales from the 2012 level and an EBIT of EUR 1.7 billion. Daimler estimates that the Vans sector will achieve an EBIT of EUR 600 million with the new models of the Citan and Sprinter contributing to the increase in the unit sales. In the Buses, Daimler estimates an EBIT of EUR 100 million as a result of revived demand in South America and the sales increase in Western Europe.

 Daimler's commercial vehicles sector showed an increase in unit sales by 2.5% year-on-year to 560,000 units from January to September 2013. The Trucks, Vans, and Buses also showed an increase in unit sales respectively. The commercial vehicle business, however, showed a 1.3% decrease in sales year-on-year at EUR 32.5 billion and a 4.8% decrease in EBIT from EUR 1.64 billion to EUR 1.56 billion. Daimler Trucks, among others, showed sluggish sales in the first to the second quarters due to the slump in sales in Eastern Europe, especially in the Turk market, and in the North America market. However, the division showed a favorable turn of EBIT in the third quarter at a 4% increase year-on-year. The sector showed a 23.5% decrease in EBIT for the period from January to September year-on-year.

Daimler's commercial vehicle business: sales volume by divisions
(units)
2008 2009 2010 2011 2012 YoY
2011-
2012		 Jan.-Sept.
2012 2013 YoY
Trucks 472,074 259,358 355,263 425,756 461,954 8.5% 349,023 349,661 0.2%
Vans 287,198 165,576 224,224 264,193 252,418 (4.5%) 176,289 187,373 6.3%
Buses 40,591 32,482 39,118 39,741 32,088 (19.3%) 21,571 23,595 9.4%
Total 799,863 457,416 618,605 729,690 746,460 2.3% 546,883 560,629 2.5%

Note: Values for Daimler Trucks in 2012-2013 do not include vehicles of BFDA (Auman Trucks).

 

Daimler's commercial vehicle's business results
(1 million EUR)
2009 2010 2011 2012 YoY
2011-
2012		 Jan.-Sept.
2012 2013 YoY
Revenues Daimler Trucks 18,360 24,024 28,751 31,389 9.2% 23,607 22,971 (2.7%)
Mercedes-Benz Vans 6,215 7,812 9,179 9,070 (1.2%) 6,592 6,673 1.2%
Daimler Buses 4,238 4,558 4,418 3,929 (11.1%) 2,697 2,812 4.3%
Total 28,813 36,394 42,348 44,388 4.8% 32,896 32,456 (1.3%)
EBIT Daimler Trucks (1,001) 1,323 1,876 1,714 (8.6%) 1,401 1,072 (23.5%)
Mercedes-Benz Vans 26 451 835 541 (35.2%) 442 437 (1.1%)
Daimler Buses 183 215 162 (232) - (200) 55 -
Total (792) 1,989 2,873 2,023 (29.6%) 1,643 1,564 (4.8%)
Return on Sales Daimler Trucks (5.5%) 5.5% 6.5% 5.5% (1.1%pt) 5.9% 4.7% (1.2%pt)
Mercedes-Benz Vans 0.4% 5.8% 9.1% 6.0% (3.1%pt) 6.7% 6.5% (0.2%pt)
Daimler Buses 4.3% 4.7% 3.7% (5.9%) (9.6%pt) (7.4%) 2.0% -
Total (2.7%) 5.5% 6.8% 4.6% (2.2%pt) 5.2% 13.2% 8.0%pt
Capital
Investment		 Daimler Trucks 597 1,003 1,201 989 (17.7%) - - -
Mercedes-Benz Vans 113 91 109 223 104.6% - - -
Daimler Buses 78 95 103 82 (20.4%) - - -
Total 788 1,189 1,413 1,294 (8.4%) - - -
R&D Costs Daimler Trucks 1,116 1,282 1,321 1,197 (9.4%) - - -
Mercedes-Benz Vans 193 267 358 371 3.6% - - -
Daimler Buses 212 223 225 222 (1.3%) - - -
Total 1,521 1,772 1,904 1,790 (6.0%) - - -
Number of
Employees		 Daimler Trucks 70,699 71,706 77,295 80,519 4.2% 81,044 80,130 (1.1%)
Mercedes-Benz Vans 15,226 14,557 14,889 14,916 0.2% 14,959 15,288 2.2%
Daimler Buses 17,188 17,134 17,495 16,901 (3.4%) 17,166 16,716 (2.6%)
Total 103,113 103,397 109,679 112,336 2.4% 113,169 112,134 (0.9%)

 

 


Reference: Regional unit sales of each Daimler commercial vehicle division

Daimler Trucks
(1000units)
2009 2010 2011 2012 YoY
2011-2012		 Jan.-Sept.
2012 2013 YoY
Western Europe 44.0 55.4 61.4 58.0 (5.5%) 42.3 42.9 1.4%
(of which Germany) 24.9 30.3 31.2 31.1 (0.3%) 22.5 21.7 (3.6%)
NAFTA 61.7 76.7 114.0 135.0 18.4% 102.4 100.7 (1.7%)
(of which US) 52.4 62.6 96.9 113.8 17.4% 85.7 87.3 1.9%
Latin America 37.1 58.1 61.9 46.2 (25.4%) 32.7 45.2 38.2%
Asia 86.7 120.4 134.9 163.7 21.3% 128.9 118.3 (8.2%)
(of which Japan) 23.1 24.8 27.0 35.0 29.6% 26.8 27.7 3.4%
Other 29.5 44.6 53.5 59.0 10.3% 42.7 42.5 (0.5%)
Total 259.3 355.3 425.8 462.0 8.5% 349 349.7 0.2%
BFDA
(Auman Trucks)		 0 0 0 31.3 - 13.9 75.4 5.4
times
Total including BFDA 259.3 355.3 425.8 493.3 15.9% 362.9 425.1 17.1%

Note:*BFDA started production of its vehicles from June 2012.

 

Mercedes-Vans
(1000units)
2009 2010 2011 2012 YoY
2011-2012		 Jan.-Sept.
2012 2013 YoY
Western Europe 128.1 156.8 178.3 164.9 (7.5%) 114.0 114.7 0.6%
(of which Germany) 58.2 62.2 77.6 71.0 (8.5%) 48.7 48.5 (0.4%)
Eastern Europe 11.0 16.4 22.6 24.0 6.2% 16.9 19.6 16.0%
NAFTA 2.6 13.3 22.3 26.4 18.4% 19.3 19.5 1.0%
(of which US) 1.6 10.5 18.0 21.5 19.4% 15.7 15.6 (0.6%)
Latin America 9.5 12.5 13.7 14.0 2.2% 9.6 14.4 50.0%
Asia 5.3 16.4 17.6 13.1 (25.6%) 8.9 12.1 36.0%
(of which China) 1.3 12.2 13.5 8.8 (34.8%) 5.7 9.1 59.6%
Other 9.2 8.8 9.6 10.0 4.2% 7.6 7.1 (6.6%)
Total 165.6 224.2 264.2 252.4 (4.5%) 176.3 187.4 6.3%

 

Daimler Buses
(1000 units)
2009 2010 2011 2012 YoY
2011-2012		 Jan.-Sept.
2012 2013 YoY
Western Europe 7.2 7.2 5.9 5.9 0.0% 3.6 3.7 2.8%
(of which Germany) 2.8 2.6 2.2 2.0 (9.1%) 1.1 1.3 18.2%
Eastern Europe 1.3 1.3 1.6 1.7 6.2% 1.1 1.5 36.4%
NAFTA 3.9 3.9 4.0 3.9 (2.5%) 2.7 2 (25.9%)
(of which US) 0.9 0.6 0.5 0.4 (20.0%) 0.3 0* (84.0%)
Latin America 16.3 23.2 25.0 17.8 (28.8%) 12.3 14.4 17.1%
Asia 2.0 1.5 1.7 1.9 11.8% 1.2 1.2 0.0%
Other 1.8 2.1 1.5 0.9 (40.0%) 0.6 0.8 33.3%
Total 32.5 39.1 39.7 32.1 (19.1%) 21.6 23.6 9.3%

Note：*The number of vehicles sold in 2013 Jan.-Sept. for the US is 46 units.

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