„We are putting the brakes on costs“
Ms Scherer, will short-time working remain in place at the Mercedes-Benz plant in Wörth, and will other factories follow soon due to the weak demand for trucks in Europe?
We are flexible and could theoretically extend short-time working. So, we have not yet reached the maximum, but we will be doing quite well with this measure in the short term. For our engine, axle and transmission plants in Kassel, Mannheim and Gaggenau, however, the demand situation is different.
Why is that?
These three plants deliver globally. They are benefiting because North America is doing very well. However, if the economy and, therefore demand in Europe remains weak for longer, we could also consider measures such as short-time working for these locations. Unfortunately, there are still no signs of a turnaround in Europe's economy.
How do you also intend to prevent a further decline in the profitability of Mercedes-Benz Trucks?
We are putting the brakes on costs in order to keep profitability at an acceptable level this year. We imposed a spending freeze at the beginning of August.
Which means exactly what?
We are reducing all costs that do not lead to sales, such as travelling and events. We are also avoiding new hires or replacing employees if it is not necessary. We are utilising natural fluctuations to reduce the number of employees.
At the beginning of August, you announced a resilience and efficiency programme. What will it involve?
This is a medium-term programme. Once the plans have been finalised, we will announce the details. We are looking at how we can streamline our processes and interfaces within the organisation. This is not just about Mercedes-Benz Trucks but also about our headquarters and our truck technology organisation. Now is a good time to do this.
Why is that?
Almost three years after the IPO, we are looking at comparisons with our competitors, for example: What functions have we built? Are they competitive? Which tasks can we outsource that others can do more efficiently? We are taking a very close look at our IT systems, for example. Much more automation is possible. We need to make our IT landscape more future-orientated. There is enormous potential there.
In other areas, too?
Yes, we are also looking at our product range, the complexity of development, and controlling. The question is: how do we ensure that we get the maximum output for every euro we spend?
Were these considerations already in place before you joined the company, or did you launch these initiatives?
Both, and it can be helpful if you haven't known a company for so long. You then question some things from a different perspective. What is clear is that clever strategic financial planning is what makes the far-reaching technological change that our industry is undergoing possible in the first place.
With regard to China: Can we expect further financial strain due to the BFDA joint venture? The book value has been written down to zero. However, you have not ruled out additional charges.
We are currently discussing long-term business development and our production in China with our Chinese partner, Foton. Because the market receives cheap gas from Russia, LNG drives are favoured, and demand for our diesel trucks has collapsed.
Will Daimler Truck possibly withdraw from China altogether?
We are looking at various options. It would be too early to talk about a withdrawal or anything like that. China is the largest truck market in the world. But of course, we have to examine what market share we can gain in the future with the products we produce there.
Such a step is not out of the question.
As I said, we are looking at various options.
In conclusion, How does the profitability of electric trucks and buses compare with diesel vehicles?
The contribution margins as a percentage of turnover for our electric vehicles are generally not lower than those of lorries and buses with diesel engines. After all, electric vehicles currently cost at least twice as much to purchase. The absolute value contribution is, therefore, higher. Of course, there are very high start-up costs due to development. The investments are amortised over the years.
Approximately how long does that take?
That depends on how the sales figures develop. The big problem is that there are still far too few charging stations for batteries. In Europe, we would need 35,000 stations by 2030 in order to meet the EU's CO2 emission targets. But there are only 600. Four hundred more would have to be added every month for this to happen.
