🚛 Daimler Truck under pressure: Change in US emissions rules dampens pre-sale expectations!
Shares of Daimler Truck $DTG.DE fell more than 7 %. The main reason is the announcement by the Environmental Protection Agency (EPA) in the U.S. that it's considering lifting stricter emissions rules. This regulation was supposed to encourage U.S. companies to massively pre-order greener trucks between 2025 and 2026, which is now unlikely to happen.
📌 Daimler Truck bets on decarbonisation in the US
North America is the largest market for Daimler Truck - the company has invested billions of euros in the development of electric and hydrogen trucks here.
Removing regulations means less pressure on transport firms to switch to green vehicles, which may slow the adoption of new technologies.
Daimler Truck now has to adjust demand expectations - the number of pre-orders is not expected to be as expected.
📈 Daimler Truck: Q4 2024 results
Sales: €14.3 billion (-4% YoY, still above expectations)
Adjusted operating profit (EBIT): EUR 1.1 billion (-29% YoY)
Earnings per share: EUR 0.95 (-36% YoY)
Sales down 11% to 124,386 vehicles, but orders up 15% to 124,046 vehicles
📌 2025 Outlook:
Sales expected to return between 8-10%, dependent on macroeconomic and geopolitical factors.
Daimler Truck still sees strong demand in the US and Brazil, but Europe is weaker.
📢 Daimler Truck CEO Karin Rådström:
"The US market remains key. While the market is a key market for the automotive industry, the market is also a key market for the Brazil we are growing in Brazil, in Europe we are facing lower demand. Our division Trucks Asia is holding steady despite weaker markets."
🚛 Competition:
Volvo Group $VOLVB.PR - North America consists of 30 % sales, change in regulation could affect future demand.
Scania (part of Traton Group) - Another European truck maker that could see similar issues.
PACCAR$PCAR - US truck maker of Kenworth and Peterbilt trucks, which in turn could benefit from lower regulation.
If emissions rules are relaxed, the transition to electric and hydrogen vehicles will be slower, affecting demand for new models.
Demand for trucks in USA remains high, but growth in Europe is uncertain.
What is your opinion on truck manufacturers?
Interesting business, but it's hard to say if such a company has great potential or not.
This is not good news for $DTG.DE, but on the other hand it can be a good opportunity and after some time the situation can be completely different again.
From what you write, it doesn't make sense to me to invest in it. Obviously the company won't be doing well for a while now and demand for their vehicles won't be as high.