1 00:00:00,040 --> 00:00:02,719 Speaker 1: We've been monitoring shares of Diaimler Truck in New York 2 00:00:02,759 --> 00:00:05,480 Speaker 1: and Germany, the world's biggest truck maker, making its case 3 00:00:05,480 --> 00:00:08,920 Speaker 1: to investors today with a focus on lowering costs, increasing 4 00:00:09,000 --> 00:00:12,200 Speaker 1: service revenue, and also tapping that into demand for autonomous 5 00:00:12,280 --> 00:00:15,720 Speaker 1: driving and a mission free trucking, which is obviously what 6 00:00:16,079 --> 00:00:18,160 Speaker 1: the entire industry has been focused on on of late. 7 00:00:18,400 --> 00:00:22,079 Speaker 2: Yeah, absolutely, so Diamalder actually coming out and saying they're 8 00:00:22,079 --> 00:00:24,400 Speaker 2: going to Dimaler Truck, I should say, after that historic 9 00:00:24,400 --> 00:00:26,759 Speaker 2: split in twenty twenty one, saying they're going to buy 10 00:00:26,800 --> 00:00:29,479 Speaker 2: back two billion euros where the shares about two point 11 00:00:29,480 --> 00:00:33,440 Speaker 2: two billion dollars at today's exchange rate, and they're going 12 00:00:33,479 --> 00:00:39,040 Speaker 2: to continue It looks like a focus on margins. They 13 00:00:39,080 --> 00:00:41,199 Speaker 2: want to hit margins in the range of eight and 14 00:00:41,240 --> 00:00:44,640 Speaker 2: a half to ten percent. That is a boost from 15 00:00:44,640 --> 00:00:47,919 Speaker 2: a previous estimate of seven and a half to nine percent, 16 00:00:48,000 --> 00:00:51,120 Speaker 2: So they're trying to catch up to small arrivals with 17 00:00:51,200 --> 00:00:54,160 Speaker 2: bigger margins. Joining us now is the CEO of Dimalerd Truck, 18 00:00:54,200 --> 00:00:57,720 Speaker 2: Martin Down. He's in Boston. Martin, great to talk to 19 00:00:57,720 --> 00:01:01,720 Speaker 2: you on the program today. Tell me about the move 20 00:01:01,880 --> 00:01:05,400 Speaker 2: to a higher forecast. What has made you more confident? 21 00:01:06,440 --> 00:01:09,280 Speaker 3: I mean, the twenty twenty three is going just awesome. 22 00:01:09,920 --> 00:01:11,720 Speaker 3: When we started the year, we were still a little 23 00:01:11,760 --> 00:01:16,200 Speaker 3: bit concerned about the supply situation that East up It 24 00:01:16,319 --> 00:01:20,840 Speaker 3: still tends in the marketplace. Demand is extremely strong, especially 25 00:01:20,840 --> 00:01:24,080 Speaker 3: for our great products all around the globe, and therefore 26 00:01:24,120 --> 00:01:26,800 Speaker 3: we had this great confidence we were able to not 27 00:01:27,000 --> 00:01:31,000 Speaker 3: just raise our forecast for twenty twenty three, but announce 28 00:01:31,319 --> 00:01:34,520 Speaker 3: that massive share buyback program because we're really doing nice 29 00:01:34,520 --> 00:01:36,280 Speaker 3: on the cash flow side as well. 30 00:01:36,560 --> 00:01:39,760 Speaker 1: Martin, what is the balancing act on how much you 31 00:01:39,920 --> 00:01:44,560 Speaker 1: invest in new technology versus what gets earmarked for shareholders 32 00:01:44,920 --> 00:01:47,360 Speaker 1: like that buyback related news, I mean, we. 33 00:01:47,360 --> 00:01:52,000 Speaker 3: Have a very clear investment program going forward, post on 34 00:01:52,040 --> 00:01:56,440 Speaker 3: the traditional products with a combustion engine, but more importantly 35 00:01:56,560 --> 00:02:00,680 Speaker 3: on electric clocks as well as on hydrogen. Convinced that 36 00:02:00,720 --> 00:02:03,840 Speaker 3: we need both technology for an emission free future that 37 00:02:04,000 --> 00:02:08,919 Speaker 3: means battery electric and hydrogen, we have key investment plans 38 00:02:08,919 --> 00:02:11,959 Speaker 3: for those. We're doing a lot with partnerships all around 39 00:02:12,000 --> 00:02:17,880 Speaker 3: the globe, competitors, suppliers to secure ourselves a good position 40 00:02:18,160 --> 00:02:22,720 Speaker 3: as the words leading truck manufacturer and yet being successful, 41 00:02:22,840 --> 00:02:27,880 Speaker 3: being very very valve financed. There is enough left to 42 00:02:27,960 --> 00:02:31,800 Speaker 3: have our shareholders participate as well in that success. 43 00:02:32,160 --> 00:02:36,200 Speaker 2: Love that e Actress Blue, their great big rig that 44 00:02:36,240 --> 00:02:40,240 Speaker 2: we're showing here on screens. Martin, as you make a 45 00:02:40,360 --> 00:02:44,080 Speaker 2: shift which a lot of auto manufacturers have made as well, 46 00:02:44,080 --> 00:02:48,440 Speaker 2: you're selling more of your high margin heavy duty trucks 47 00:02:48,680 --> 00:02:52,399 Speaker 2: in order to fund this transition to electric. What kind 48 00:02:52,400 --> 00:02:56,160 Speaker 2: of margins do you see in the emissions free business? 49 00:02:56,400 --> 00:02:59,480 Speaker 2: How much money can you make on vehicles that are 50 00:02:59,480 --> 00:03:01,040 Speaker 2: not power by gas and diesel? 51 00:03:02,040 --> 00:03:04,960 Speaker 3: I mean that is for me, absolutely no reason that 52 00:03:05,000 --> 00:03:08,480 Speaker 3: the margins on emission free trucks should be lower than 53 00:03:08,600 --> 00:03:11,720 Speaker 3: on combustion trucks, because you have to see there is 54 00:03:12,440 --> 00:03:16,800 Speaker 3: a lot of investment necessary to have battery factories or 55 00:03:16,840 --> 00:03:21,680 Speaker 3: fuel cell factories. And therefore I am not afraid at 56 00:03:21,720 --> 00:03:25,240 Speaker 3: all of that transition. It's not a threat to our industry. 57 00:03:25,560 --> 00:03:26,880 Speaker 3: It's rather a chance. 58 00:03:27,280 --> 00:03:31,440 Speaker 1: And Martin, when we initially saw the Diamoner truck spin off, 59 00:03:31,639 --> 00:03:34,560 Speaker 1: there was a theory that this was going to allow 60 00:03:34,639 --> 00:03:37,640 Speaker 1: you to move faster. Is there anything you can point 61 00:03:37,680 --> 00:03:40,720 Speaker 1: to happening with the business right now which would speak 62 00:03:40,720 --> 00:03:43,720 Speaker 1: to your ability to navigate all this change at a 63 00:03:43,760 --> 00:03:44,480 Speaker 1: faster pace. 64 00:03:45,360 --> 00:03:52,240 Speaker 3: Absolutely, we took an entire level of corporate alignment out 65 00:03:52,280 --> 00:03:55,720 Speaker 3: of the whole thing, and we on the other side 66 00:03:56,360 --> 00:04:00,600 Speaker 3: decided on the structure of a run five independent businesses 67 00:04:00,680 --> 00:04:04,600 Speaker 3: time LA buses, trucks, North America, trucks Europe, trucks Asia 68 00:04:04,720 --> 00:04:08,800 Speaker 3: and financial services. It's more freedom to them than before, 69 00:04:08,920 --> 00:04:12,240 Speaker 3: so that in total speeded us up. And I think 70 00:04:12,280 --> 00:04:16,640 Speaker 3: if numerous examples. Potentially the best example unfortunately last year 71 00:04:18,240 --> 00:04:22,640 Speaker 3: when the crime war started, it took us exactly seventy 72 00:04:22,680 --> 00:04:27,000 Speaker 3: two hours to seize our entire business in Russia with 73 00:04:27,120 --> 00:04:29,880 Speaker 3: a full commitment from the entire boat to that decision 74 00:04:30,080 --> 00:04:33,400 Speaker 3: would have been impossible in a large conglomerate before, would 75 00:04:33,400 --> 00:04:36,440 Speaker 3: have taken weeks. Here we were ableien seventy two hours. 76 00:04:36,440 --> 00:04:39,360 Speaker 3: The same is now this investment decisions and so on. 77 00:04:39,400 --> 00:04:42,120 Speaker 3: There's a lot of things going on in our company 78 00:04:42,440 --> 00:04:43,840 Speaker 3: at record speed, so. 79 00:04:43,760 --> 00:04:46,479 Speaker 2: I guess that will help to streamline the business as well. 80 00:04:46,520 --> 00:04:51,080 Speaker 2: You've already had big moves with Fuso merging with Toyota's HIGHO. 81 00:04:52,120 --> 00:04:54,400 Speaker 2: Is there anything else that we can expect in that 82 00:04:55,120 --> 00:04:59,440 Speaker 2: area in terms of sales, for example, or big partnerships JVS. 83 00:05:00,760 --> 00:05:02,520 Speaker 3: I mean, the next big step is certainly that we 84 00:05:02,560 --> 00:05:05,919 Speaker 3: come up with a battery cell production, most likely in 85 00:05:05,960 --> 00:05:08,240 Speaker 3: the United States, and stay tuned. I think that's a 86 00:05:08,279 --> 00:05:10,559 Speaker 3: good opportunity for us to meet again and talk about 87 00:05:10,560 --> 00:05:12,000 Speaker 3: that in the near future. 88 00:05:12,560 --> 00:05:14,880 Speaker 2: All right, Martin, thanks so much for joining us, and 89 00:05:15,360 --> 00:05:17,440 Speaker 2: I know you've got an investor day today, so good 90 00:05:17,520 --> 00:05:21,919 Speaker 2: luck with your investors. Diamer Truck CEO Martin down coming 91 00:05:21,960 --> 00:05:23,719 Speaker 2: to us out of Boston.