Daimler Truck may exit China manufacturing amid global downturn - FT

Published 21/07/2025, 16:40
© Reuters.

Investing.com -- Daimler (OTC:MBGAF) Truck is considering a potential exit from manufacturing in China as the company faces what its chief executive described as a "crazy" global down cycle, The Financial Times reports.

The world’s largest truck producer is grappling with multiple challenges, including U.S. tariffs and weak demand in Europe, according to CEO Karin Rådström in an interview with the Financial Times.

"Basically we’re looking at everything," Rådström said when questioned about the company’s future in China. "It is the biggest truck market in the world. It’s not an easy market to be profitable in but it’s also a market where technological development moves fast."

The German manufacturer’s difficulties in China have coincided with restructuring efforts in Europe. Last week, the company announced plans to eliminate 5,000 jobs in Germany by the end of the decade.

In 2024, Daimler Truck recorded an impairment charge of €120 million on the value of its Chinese joint venture. The company’s diesel truck sales in China declined as market demand shifted toward liquefied natural gas-powered vehicles, a change triggered by falling gas prices in the country following Russia’s invasion of Ukraine.

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