Daimler Truck sacrifices profits for expansion in Asia

November 13th, 2010  |  Published in In the Media

Andreas Renschler, the head of the world’s biggest truck manufacturer told the TechWatcher in an exclusive interview for the German financial daily Financial Times Deutschland in Tokyo, that it will be difficult to make a profit in India and China in the beginning. Even after mid-term the profit margins would likely not reach the level of the margins in developed countries, though sufficient. “We can afford it”, said Renschler.

The TechWatcher argues, that Renschlers acknowledgement shows the dilemma of the global truck maker. If they want to stay ahead of the agile Chinese and Indian players, who occupied four of the five top spots in the global truck ranking, they have to enter the low cost segment in these markets. Even if this means, to sacrifice profits.

Unfortunately the Financial Times Deutschland keeps the article behind the paywall. But the German car magazine put something based on the article online. Here you go (if you like to read German) …

More on Daimler Truck: On the TechWatch > Drive your truck like your Porsche.

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