The profit for truck manufacturer Daimler Truck plummeted by 80 percent in the first quarter of this year. The company, based in Leinfelden-Echterdingen, reported on Wednesday that the group’s revenue fell from €749 million in the corresponding quarter of the previous year to €149 million. Despite the significant drop, which even led analysts to anticipate weak figures, the company cited several operational challenges.
The primary headwinds included US import tariffs aimed at Mexico, in which Daimler Truck produces vehicles for the US brand Freightliner. Furthermore, a downturn in the US logistics sector resulted in diminished demand for new trucks from major forwarding companies.
However, the company noted positive indicators suggesting a potential recovery. Specifically, the order intake in North America recorded an increase of 86 percent compared to the period last year, casting a hopeful light on the market’s future trend.