Daimler Truck Unveils “Stronger 2030” Vision at Capital Market Day 2025

Daimler Truck hosted its Capital Market Day 2025 at its Cleveland plant in North Carolina, the facility where it builds the Freightliner Cascadia and Western Star 47X and 49X models. This venue underscored the importance of the U.S. market in the company’s global strategy. Under the theme “Stronger 2030,” the company introduced an evolved strategy, grounded in five strategic pillars, and set upgraded financial targets for the next five years.

“At Daimler Truck, we are proud to work for all who keep the world moving. And we want to build the best truck and bus company – for our customers, our employees and our shareholders,” said Karin Rådström, President & CEO. “We have the strategy in place, and we are establishing the performance culture to achieve this ambition. When we do it right, it brings us to a profitability of more than 12% return on sales by 2030.”

Strategy Focus: Simpler Structures, Faster Execution, Stronger Returns

The updated group strategy revolves around five pillars:

• Unlocking potential through growth, scale, and efficiency, with integrations like Mitsubishi Fuso and Hino enabling more reach in key regions.
  
• Pushing services to increase margins. In 2024 alone, the company earned over €8 billion in service revenue. With better parts availability and deeper customer networks, this pillar aims to grow resilience.
  
• Transforming with a modular tech approach, balancing investment between diesel and zero-emission powertrains, including partnerships like Coretura with Volvo Group.
  
• Driving cost cuts through the Cost Down Europe program, which targets over €1 billion in savings by 2030. Key methods include headcount optimization, labor flexibility, and standardized practices.
  
• Fostering a high-performance culture, focused on accountability, fast decisions, lean structures, and pay-for-performance systems.
  

Financial Targets: Focus on Return and Cash

With this strategy, Daimler Truck aims for:

• An adjusted return on sales (ROS) above 12% in its Industrial Business, maintaining a cycle range of 9–13%.
  
• A 50% increase in free cash flow by 2030, compared to 2024.
  
• Revenue growth of 3–5% annually, supported by services, vocational trucks in North America, zero-emission trucks in Europe, and strong momentum in India and the defense sector.
  
• A return on capital employed (ROCE) target of 40–50% by the decade’s end.
  
• A new €2 billion share buyback program, set to begin in the second half of 2025, along with a 40–60% dividend payout policy.
  

“By consistently executing our new strategic priorities, we will deliver a step-change in financial performance, driven by our comprehensive Cost Down Europe efficiency program,” said Eva Scherer, CFO. “We will continue to reward our shareholders by reaffirming our dividend policy of 40 to 60 percent payout ratio, and by implementing our new share buyback program of up to two billion euros.”

Segment Strategy: Regional Strengths, Global Goals

Mercedes-Benz Trucks: Restructure. Leverage. Grow.

Mercedes-Benz Trucks plans to restructure operations to unlock more margin:

• Shift production to best-cost countries.
  
• Cut German headcount via natural attrition and retirement programs.
  
• Use the new MBT ONE platform to unify global product development and reduce complexity.
  

Growth will come from four areas:

• Doubling defense business,
  
• Selling 25,000+ zero-emission trucks in Europe by 2030,
  
• Expanding in India’s domestic and export markets,
  
• And scaling high-margin services.
  

“We will restructure our organization for higher efficiency and reduced complexity... grow in areas with major potential, such as zero-emission trucking in Europe, the defense sector, as well as our parts and services business,” said Achim Puchert, Board Member, responsible for Mercedes-Benz Trucks and BharatBenz.

DTNA: Sustain Growth, Scale Smartly

Daimler Truck North America (DTNA) continues as a profit leader, having already exceeded its 2025 ROS target by reaching 12.9% in 2024.

With a 24% share in heavy vocational trucks, DTNA’s approach blends:

• Value-based pricing,
  
• Efficient product mix,
  
• Close ties with dealers and customers,
  
• And focus on vocational trucks and service offerings.
  

“We’ve strengthened our leadership position in North America with the launch of the Fifth Generation Freightliner Cascadia,” said John O’Leary, DTNA CEO. “The combination of the vocational market’s lower cyclicality and the growth of our service business will further enhance our resilience.”

Technology Strategy: Adaptable, Scalable, Precise

Daimler Truck’s technology roadmap is built around:

• Flexible investments,
  
• Strategic partnerships,
  
• And leveraging global platforms.
  

The company is adjusting its zero-emission roadmap, especially in North America, where EV adoption has slowed. The battery-electric platform will follow demand curves, while fuel cell trucks are now scheduled for early 2030s production in Europe, due to slower hydrogen infrastructure rollout.

At the same time, Coretura, the joint venture with Volvo, is building a software-defined vehicle platform, meant to unlock:

• Continuous fleet improvement,
  
• Remote upgrades,
  
• And lower total cost of ownership.
  

“Our flexible, modular technology strategy enables Daimler Truck to transform at the speed of right,” said Andreas Gorbach, Board Member, Truck Technology. “With flexible investments, strong partnerships, and a focus on global scale, we are well-positioned to lead the future of trucking.”

Conclusion

With clear financial goals, a sharpened execution plan, and scalable technologies, Daimler Truck enters the second half of the decade with its eyes set firmly on higher profitability, export-driven growth, and strong shareholder value. For fast-growing markets like India, the focus on vocational trucks, defense, and commercial vehicle exports could mean more visibility for Daimler truck offerings, as customers seek durability, service, and value.

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