New CEO must adapt Daimler Truck to weaker market, chairman says By Reuters

STUTTGART (Reuters) – Daimler Truck expects a further slowdown in demand for commercial vehicles and its new CEO needs to take steps to adjust, the German company’s chairman Joe Kaeser said on Thursday.

“Our profitability is not yet where our competitors are, that has to change in the medium to long term,” Kaeser said in a news conference after Karin Radstrom was announced as the company’s next CEO on Wednesday night.

He did not say what action Radstrom might have to take.

The truck and bus maker named Mercedes-Benz ( OTC: ) truck brand chief Radstrom as its CEO effective Oct. 1, just over a month after it lowered its revenue guidance and cut hours work at its German factories due to weak demand in Europe and Asia.

Her predecessor, Martin Daum, will retire as planned but will remain on the board until the end of this year.

Daimler Trucks is facing reduced demand after shortages of chips and other parts due to the pandemic pushed up production costs. The industry also faces challenges to reduce pollution from commercial vehicles.

Radstrom, the first woman to take the helm of the world’s largest heavy truck maker, hails from Södertälje in Sweden, home of Europe’s most profitable truck maker, Volkswagen’s Scania ( ETR: ), where she spent about 20 years , starting with the marketing activity. intern Joined Daimler in 2021.

“I think with Ms. Radstrom, we have someone who is extremely client-focused, who is well-versed … and knows the industry well because of her experience outside of the company,” Kaeser said.