Daimler Truck expands Defence business globally

Daimler Truck has emphasized the significance of its Defence business and introduced a new umbrella brand, „Daimler Truck Defence.“ This brand consolidates the company’s global activities in the defense sector and aims to align the business for global growth. The portfolio will not only include vehicles from Mercedes-Benz Trucks but will gradually encompass solutions from other global vehicle portfolios and brands of Daimler Truck. To achieve these goals, the company plans to invest a mid-three-digit million amount in expanding its development, production, sales, and service capacities.

Around 1,000 employees are engaged in the Defence sector. The growth strategy is significantly shaped at the Wörth location, leading to an increased demand for qualified professionals. Daimler Truck has set a revenue target of one billion euros by 2028.

Strategic Investments and Global Orientation

Karin Rådström, CEO of Daimler Truck, emphasizes the central role of the Defence sector in the company’s growth strategy. „That is why we are strategically investing in our production facilities, the development of new solutions, as well as in our sales and service network,“ she explains. Dennis Kinzelmann, CEO of Daimler Truck Defence, highlights that the demand for reliable military mobility is growing worldwide. With global manufacturing capacities and an expanded portfolio, the company aims to provide military vehicles and solutions in high quality and large quantities.

The introduction of Daimler Truck Defence is also intended to enhance efficiency. Customers will receive expertise and suitable solutions from a single source while the product portfolio is expanded. The group plans to offer global vehicle portfolios and brands as military commercial vehicles and leverage synergies between the products of various brands.

Expansion of Production Capacities

As part of the strategic expansion, Daimler Truck will also enhance its development, production, sales, and service capacities. This is intended to enable a broader product portfolio and support the realization of military vehicle orders in higher volumes. The production facilities in Wörth am Rhein and Molsheim (France) form the backbone of Defence production in Europe and allow for the integration of military variants into existing production lines. Additionally, the company will offer local assembly of Mercedes-Benz trucks with military equipment in the countries of its customers.

The global service and support network will also be expanded. With around 5,000 workshops in over 160 countries, Daimler Truck already ensures a high readiness of vehicles for international deployment. The expansion aims to enable faster availability of spare parts and high-quality services.

Growth Area Defence

Daimler Truck views the Defence business as an important growth driver. Recent contracts include a large order from the Bundeswehr for military logistics vehicles and a tender from the Canadian Armed Forces in cooperation with General Dynamics Land Systems for at least 1,500 logistics trucks. Furthermore, a framework agreement has been concluded with the French Armed Forces for 7,000 trucks based on the Zetros.

These programs illustrate the focus of the Defence sector on European and transatlantic partnerships as well as robust industrial delivery capability. Technologically, Daimler Truck Defence utilizes the civilian series of the group and collaborates with partner companies to drive innovations.

Expansion of the Product Portfolio

The Defence portfolio is continuously being expanded to meet the demands of modern military operational scenarios. In the future, the offering will include a wider range of vehicle solutions, from light multipurpose vehicles to heavy tactical logistics platforms. Customers will benefit from a greater selection across various price ranges and can access already established vehicles with military equipment.

Moreover, Daimler Truck is pursuing the development of an integrated offering that encompasses development, production, system integration, and long-term service and lifecycle support. The company is increasingly focusing on modular platform concepts and collaboratively developed system solutions to quickly and flexibly meet specific requirements.