“Stronger 2030” sets course for profitability and transformation
At its Capital Market Day in early July 2025, held in the United States, Daimler Truck unveiled its “Stronger 2030” strategic initiative – designed to drive profitability and resilience for the decade ahead.
The company introduced new profitability targets, a multi-billion-euro European efficiency programme, and a sharpened view of global market opportunities. Underpinning this is the guiding principle of “Speed of Right” – a commitment to investing with discipline, not haste. In a time of geopolitical and energy uncertainty, investments in diesel engine development are being ramped up again, and e-mobility investments are taking a back seat.
Internal sources suggest that plans for in-house battery production have been put on hold and are unlikely to be revived before the next decade. However, such decisions reflect the current political realities and may change. What remains clear is Daimler Truck’s continued commitment to the energy transition – albeit with pragmatism.
“At Daimler Truck, we are firmly committed to becoming a stronger company by 2030 than we are today,” said CEO Karin Rådström. “We’re focusing on five pillars: modular growth, expanding services, disciplined investment, a lean operating model, and a performance culture that empowers our people.”
A strategy with substance
Speaking in Cleveland, North Carolina – home to Freightliner Cascadia and Western Star production – Daimler Truck executives announced a refined five-pillar strategy: growth and scaling, customer-centric services, technology-open transformation, efficiency improvements, and performance-oriented culture.
CFO Eva Scherer outlined an ambitious target: “A clean industrial operating margin of over 12% by the end of the decade – across all segments. This significantly raises our ambitions and makes profitability the central metric.”
“Cost Down Europe”: €1 billion in savings
A cornerstone of the new strategy is the “Cost Down Europe” programme, which aims to reduce structural costs by more than €1 billion by 2030. The focus is on Mercedes-Benz Trucks, including site optimisation, leaner processes, and socially responsible staff reductions in Germany. An expansion of Daimler Truck’s dealership network across European import markets is also planned.
Growth markets: North America and India
In North America, Daimler Truck North America (DTNA) currently holds a 24% market share and is expected to deliver a 12.9% operating margin in 2024, exceeding previous targets. Strong demand in the vocational segment (e.g. construction and municipal vehicles) is being met with the next-generation Freightliner Cascadia.
In India, the BharatBenz business will focus on local expansion and export growth. Meanwhile, Mercedes-Benz Trucks aims to double its defence business and sell over 25,000 zero-emission vehicles in Europe by 2030.
Asia strategy: Fuso - Hino consolidation
The Fuso business is currently being restructured through the merger with Toyota subsidiary Hino, as Karl Deppen, designated CEO of the newly formed holding, explained: “The integration of Mitsubishi Fuso and Hino aims to strengthen their position amid major industry changes, especially the shift to decarbonised powertrains such as e-mobility and hydrogen. The goals include improving products, expanding service networks, and leveraging scale in a competitive and fast-evolving market. Consolidation is necessary in Japan, while outside Japan – particularly in Southeast Asia, South America, and the Middle East – strong competition from Chinese manufacturers demands a unified and stronger company.”
Technology outlook: Pragmatism over purity
Daimler Truck continues to pursue a technology-neutral approach to decarbonisation. In Europe, it is doubling down on hydrogen (fuel cell industrialisation is expected from the early 2030s). In North America, however, zero-emission investments are slowing due to weak demand and limited charging infrastructure.
Central to future innovation is the Coretura joint venture with Volvo Group, focused on creating a software-defined vehicle platform with over-the-air updates and optimised total cost of ownership for fleets.
Shareholder strategy and capital discipline
Daimler Truck also announced a new share buyback programme worth up to €2 billion, running for two years from Q3 2025, and a dividend payout ratio of 40 to 60% of net income.
The Capital Market Day primarily targets investors and banks, and the message to those stakeholders was that the company is committed to long-term profitability, capital efficiency, and global leadership in commercial vehicles. However, there was also good news for transport operators too. With “Stronger 2030,” Rådström and her team have laid out a bold, disciplined vision that aims to deliver not only long-term shareholder value, but also real-world gains for customers navigating a rapidly evolving transport landscape.
Strategic shift: Daimler Truck targets construction and vocational segment
By Joe Howard, Editor-in-Chief, Transport Topics
(US associate member of the International Truck of the Year Jury)
Daimler Truck is pursuing a long-term strategy. Given an economic environment expected to remain subdued for some time, the company is looking far ahead – toward 2030. This time horizon is realistic in the commercial vehicle industry, considering development cycles and product launches.
A key pillar of this strategy – especially relevant to readers in North Carolina and the US – is the increased focus on the heavy construction and vocational segment. This segment, where vehicles are tailored for very specific applications, offers growth potential that the more saturated on-highway segment currently does not – at least in the North American market.
Daimler executives openly acknowledge the challenges. The construction and vocational segments are small, highly specialised, and long dominated by established competitors. Yet Daimler Truck sees an opportunity here. Through targeted investments in new Western Star products, designed to meet the tough demands of this customer group, the company is positioning itself.
Early feedback is optimistic. According to the company, the new models are already resonating positively. Whether this trend continues remains to be seen – but the strategy is sound: in a market with highly specific demands, those who provide exact solutions can gain ground – and possibly quickly.
As Daimler Truck CEO John O’Leary emphasises, the construction and vocational segment includes some of the toughest customers around. But that’s no reason not to try. The coming years will show if Western Star can establish a foothold in this segment – and perhaps turn it into a long-term success.