(By Observer Network, Zhang Jiadong; Editor: Gao Xin)
According to the Wall Street Journal, on July 8 local time, Daimler Trucks said that due to plans to transfer truck production to more cost-effective countries, the company expects to lay off about 5,000 people in Germany over the next five years.
Reuters
The company said that this layoff means a reduction of 20% in the number of employees at its headquarters and administrative departments, and a 15% reduction in sales staff by 2030. The layoffs may be achieved through natural attrition, expanding early retirement options, and targeted severance packages.
In addition, Daimler outlined a business restructuring plan aimed at improving efficiency, reducing complexity, developing service businesses, and balancing investments in diesel and zero-emission technologies to achieve higher profitability targets.
Daimler stated that its current goal is to have an adjusted sales margin of more than 12% for its industrial business by 2030, compared to 8.9% last year.
The company also said that its goal is to achieve an annual revenue growth of 3%-5% by 2030, which will mainly depend on the defense business, the growth of zero-emission car sales in Europe exceeding 25,000 units, growth in the Indian market, and the push from high-margin service businesses and North American truck operations. Among these, the company plans to raise its expected profit margin for North American trucks in 2030 from 9%-12% to 10%-14%.
Reuters noted that this layoff reflects the collective difficulties currently faced by European truck manufacturers.
Daimler had previously issued a statement in March, saying that due to poor performance in the European market, the company decided to launch a cost-cutting plan, aiming to cut costs in Europe by up to 1 billion euros (about 8.41 billion yuan) by as late as 2030. At that time, Daimler attributed part of the reasons to the comprehensive tariff war initiated by Trump.
From a financial perspective, Daimler, which has planned a comprehensive cost-cutting strategy, is already the best-performing among the three major European truck manufacturers.
Stock price trends of major European truck manufacturers in the first quarter, Reuters
In the first quarter of this year, Traton, the truck division of Volkswagen Group, reported revenue of 10.33 billion euros (about 86.88 billion yuan), a decrease of 10% year-on-year, with an adjusted operating profit of 646 million euros (about 5.44 billion yuan), a sharp drop of 58% year-on-year; Volvo Trucks reported revenue of 121.79 billion kronor (about 91.86 billion yuan), a decrease of 7% year-on-year, with an adjusted operating profit of 13.26 billion kronor (about 10 billion yuan), a decline of 27% year-on-year; while Daimler Trucks reported revenue of 13.3 billion euros (about 111.86 billion yuan), basically flat with the previous year, and an adjusted EBIT of 1.21 billion euros (about 10.17 billion yuan), an increase of 4% year-on-year.
Behind the overall decline in the financial performance of European truck manufacturers lies many uncertainties. The most direct impact is the decline in demand for local markets in Europe.
According to data from the European Automobile Manufacturers Association (ACEA), the commercial vehicle market in Europe in the first quarter of 2025 did not look optimistic, with a total of 72,900 heavy vehicles (over 3.5 tons) registered in Europe during the quarter, a 16% decline compared to the same period in 2024. In major selling countries, the truck registration volume in Germany dropped by 25.4%, France by 17.6%, and Spain by 12.8% compared to the previous year.
At the same time, increasingly strict emission regulations and environmental requirements are also causing a gradual decline in demand for traditional fuel-powered trucks. Under this background, the local business of European truck manufacturers is facing significant challenges.
These market issues are also the fundamental factors behind Daimler's decision to implement significant cost-cutting measures, but this is still insufficient to address the cost increase pressure caused by U.S. tariffs.
Since the implementation of U.S. steel tariffs, global automakers have been bearing huge cost risks. Data from the internal information of Volvo Group shows that due to the 25% punitive tariff on key components, the cost of the chassis assembly for its heavy trucks increased by 13.7%, and the cost of the powertrain increased by 9.2%. To this end, Volvo has announced that it will lay off 800 manufacturing employees in three states in the eastern United States.
Facing the combined impact of declining domestic market demand, the tide of anti-globalization, and geopolitical instability, European truck manufacturers are undoubtedly experiencing a more stringent market environment and challenges than the passenger car market. Whether Daimler's "self-sacrificing" self-rescue measures, such as moving production lines and laying off workers, can help it cope with the changing market landscape remains unknown for now.
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