Daimler Truck’s CEO, Karin Radström, has publicly spoken about a planned far-reaching cost-cutting program at the world’s largest truck manufacturer. She specifically mentioned that German locations and job sites will be particularly affected by the cost reductions.
Radström told the “Frankfurter Allgemeine Sonntagszeitung” that the company aims to reduce its annual costs in Europe by at least one billion euros by 2030, with a focus on Germany. The company will look at all types of costs, including material, variable and personnel costs, she announced. As the CEO of Daimler Truck, Radström has been at the helm of the Stuttgart-based Dax company since October 2024.
Radström justified the cost-cutting program by stating that other truck manufacturers are earning higher returns than her company. “I would rather have this discussion about how we can become more profitable now, when Daimler Truck is not a distressed company, than only react when we’re with our back against the wall” she said. The company’s best competitors achieve around 15% of their sales in profit, while Daimler Truck has not yet achieved this, she reckoned.
Daimler Truck employs around 34,000 people in Germany, with internal reports suggesting that approximately 5,000 positions could be cut. Radström declined to comment on this number, stating, “If you want to save a billion euros in costs, it won’t happen without job cuts, even if we’re not planning any redundancies.” The company is currently negotiating with the works council about the cost reductions.