Karin Radstrom by Daimler Truck
STUTTGART, Germany — Daimler Truck chief executive Karin Rådström says tariffs are not the biggest challenge facing the commercial vehicle maker in the United States, because the company carries out a large proportion of its manufacturing in the country.
While higher prices for raw materials such as steel, aluminum and copper are a burden, these costs affect all manufacturers, she told the German business daily Handelsblatt in a July 16 story.
“What weighs on us most is the growing uncertainty,” Rådström said. “When the economic outlook is unclear, our customers hold back on orders.”
German-based Daimler Truck is the largest truck manufacturer in North America, operating seven production plants in the U.S.
To meet its annual targets, the company will need a pickup in incoming orders. “The next few weeks will be extremely important,” Rådström said.
READ MORE: DTNA to Temporarily Lay Off 2000 Production Plant Staff
In the U.S., Daimler Truck operates heavy-duty truck brands including Freightliner and Western Star. However, due to heightened uncertainty in North America — its most profitable market — the company recently downgraded its full-year outlook. Daimler Truck now expects lower truck sales in the region, which will weigh on both revenue and profit overall.
Daimler Truck is also aiming to boost its competitiveness globally and recently announced plans to cut around 5,000 jobs in Germany by 2030. The cuts will primarily affect the struggling Mercedes-Benz Trucks brand, which is focused on Europe and Latin America.
