Daimler Expects Continuing Profit From Truck Unit

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DaimlerChrysler AG said it expects its heavy truck division, including Freightliner, to maintain its profitability, even in the face of flagging U.S. sales, Bloomberg reported Friday.In spite of the “massive decline” expected in the U.S. in 2007, “we will remain profitable and meet our capital cost goal,” said Andreas Renschler, the head of Daimler’s truck unit.Renschler added that U.S. heavy-duty truck sales could decline by as much as 40% as consumer demand tapers off in the wake of the new emissions regulations that went into effect Jan. 1, Bloomberg said.The German company said its truck unit has a return-on-net-assets goal of 11%, a target it expects to match in 2007, Bloomberg reported. Last year, Daimler sold about 537,000 heavy trucks, an increase of 1.4% compared with 2005, Bloomberg said.The company last year introduced a parts-sharing initiative among its different heavy truck brands in an effort to trim costs, Bloomberg reported.Daimler is also planning to purchase a 24% stake in China's state-owned automaker, Beiqi Foton Motor Co., and is awaiting regulatory approval of the deal from the Chinese government, Bloomberg said.