Daimler Truck weighs North American leasing, rental expansion

Daimler Truck intends to expand its leasing and rental options for customers in North America. (Daimler Truck)

HANNOVER, Germany — Daimler Truck remains so confident of continued Class 8 demand growth in North America that the truck maker intends to expand its leasing and rental options for customers, according to a senior executive.

Any expansion of the truck maker’s North American leasing or rental operations would be carried out through Daimler Truck Financial Services, the division’s CEO, Stephan Unger, said in a conversation on the sidelines of the recent IAA Transportation conference.

DTFS’ largest market is North America, which accounts for some 60% of its asset portfolio. The division has around $35 billion in assets globally. The majority of its rental portfolio is in Europe, including 6,000 trucks in Germany.

The division opened a new North American headquarters in Ballantyne, N.C., in recent days. Offices in the Detroit and Fort Worth, Texas, metropolitan areas were closed as operations were consolidated in the Charlotte-area suburb.

DTFS operates in 21 countries. The unit was founded in 2021, when Daimler Truck went public in the spinoff from Daimler AG.

In its largest market, the division is looking to expand beyond traditional financing, particularly as the freight market upswing continues, Unger said.

“We are looking into [leasing] expansion. But as we say, speed of right, or step by step. We cannot do everything at the same time,” he told reporters in Hannover, adding that customers also are showing greater demand for North American rental options. Unger could not provide further details.

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Unger. (Daimler Truck)

Pent-up demand is being released. Preliminary Class 8 truck net orders rose 42% year over year to 18,200 units in August, according to FTR Transportation Intelligence. In June, orders jumped 241%, the largest year-over-year increase during an eight-month streak of gains.

Daimler Truck CEO Karin Radstrom told reporters separately in Hannover that Freightliner and Western Star won 45% of Class 8 orders in July and 47%-48% in August.

Radstrom expects positive third and fourth quarters for Daimler Truck North America’s two Class 8 brands to continue into 2027 too.

“Most of the orders are based on replacement demand and supply constraints. I would say I’m fairly optimistic that ’27 could be a good year, but it is a little bit too early to call,” she said.

Carriers that survived the longest freight market recession in living memory are entering the upswing stronger, with their positions enhanced by a crimping of capacity availability, especially in the truckload segment. There is some caution, however, especially as diesel prices soar.

Unger said lessons had been learned following the COVID-19 pandemic, both by original equipment manufacturers and fleets.

The executive offered three tips for carriers in the current environment:

• Watch your balance sheet and income statement metrics. Don’t grow just to grow. Think about what is happening long term.

• Remember the fundamentals of how you organize your business.

• Ask whether you are prepared for the next step of growth.

Demand for both new and used trucks is growing as part of the freight market upswing.

Omdia Automotive data shows August Class 8 retail sales in the United States increased 3.9% to 18,575 vehicles from 17,876 trucks and tractors in the same period 12 months earlier.

ACT Research data show used Class 8 truck sales increased 10.6% year over year in July to 26,100 vehicles from 23,600 units a year earlier and rose 4.8% compared with 24,900 vehicles in June.

“I think we are coming out of freight recession … with a better, more healthier customer base from our point of view. I think that is important and that gives me a very positive outlook going forward, not only for the financing business, but as well for the overall truck market,” Unger said.