Mercedes-Benz Projects Growth in Truck Market, Aiming for 140,000 Units Sold in 2022, a 10% Increase

Truck Market in Brazil Expected to Rise 10%, Mercedes Assumes

To conclude the visit to Brazil this week, the global head of the Mercedes-Benz truck company, Karin Rådström, stated on Thursday, the 13th, that the ongoing restructuring in the country is progressing satisfactorily. However, she made it clear that the work is not yet finished.

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Daimler’s strategic plan, the parent company of Mercedes, aims to address the losses in Brazil by reducing dependence on imported parts and increasing exports, so that the company becomes less susceptible to a more expensive exchange rate, along with cost-cutting measures such as a 10% salary reduction for administrative departments.

Karin assessed on Thursday that, with the return of production after the initial impact of the pandemic, the truck industry in Brazil is managing to improve the ratio between imports and exports, easing exposure to exchange rates.

“We have made a lot of progress, and there has clearly been an improvement in the situation. But we still need to take more steps and keep working hard,” said the head of Mercedes. “I am very optimistic, but we still face many challenges and we are not done with the restructuring yet,” she added.

Daimler Truck’s goal is, by 2025, to become an automotive company where profitability margins are measured in double digits. Restoring financial results in the truck market, both in Brazil and Europe, is central to this goal.

For Mercedes’ management in Brazil, the truck market will remain strong in 2022, even if rising interest rates may delay fleet expansion decisions by transport companies.

Truck Sales Could Reach 140 Thousand Units

If Mercedes-Benz’s estimates are confirmed, truck sales in the Brazilian market, across all brands, will reach 140 thousand units, reflecting a 10% increase over last year. This is based on orders from agribusiness, considering the need to transport record grain harvests, and demand from the electronics market, mining, and construction. The two Mercedes factories in the country, in São Bernardo do Campo (SP) and Juiz de Fora (MG), are operating on three production shifts.

The Vice President of Sales and Marketing for the truck and bus segment of Mercedes-Benz in Brazil, Roberto Leoncini, noted, however, that this growth will depend on the availability of parts in the production line. “We need global logistics to work and help us,” he commented, predicting another year of supply issues for electronic components, a major obstacle causing shutdowns at automakers worldwide.

This year, Mercedes is concluding a R$ 2.4 billion investment project started in 2018, and the new company president in Brazil, Achim Puchert, revealed that the automaker will wait for the results of the investments made before starting a new cycle.

In light of Daimler’s plan to reduce global investments by 15% compared to pre-pandemic levels, aiming for smart capital allocation focused on more profitable markets and sectors, he anticipated that decisions on new investments would be linked to the competitiveness and sustainability of Brazilian operations compared to other markets.

“If we are going to invest, the investments need to be competitive compared to other possibilities,” said Puchert, who, as he highlighted in the interview, took over the leadership of Mercedes in Brazil with the goal of balancing market share gains with financial sustainability.