Volkswagen's Traton sees tepid truck market in 2025

Reuters

Mon, Mar 10, 2025, 12:03 AM 2 min read

(Reuters) -Volkswagen's motortruck portion Traton guided for a tepid commercialized conveyance marketplace successful 2025 connected Monday aft persistent weakness successful Europe, peculiarly successful Germany, weighed connected past year's results.

"We expect the planetary system to suffer immoderate momentum successful 2025," Traton said successful a statement, adding that it would proceed to absorption connected ratio measures this year.

The motortruck shaper forecast 2025 income improvement successful a scope of -5% to +5% and an operating instrumentality connected income of betwixt 7.5% and 8.5%. The outlook is taxable to geopolitical developments, peculiarly successful the United States, it said.

The Scania owner's shares were up 1.3% successful aboriginal Frankfurt trade.

European motortruck makers' shares person risen importantly this twelvemonth connected hopes of higher bid books up of U.S. President Donald Trump's tariffs, decisions to determination much accumulation to the Unites States and an improving European outlook.

Sweden's Volvo successful January reported beardown bid intake for the 4th fourth of 2024, and immoderate analysts said this mightiness beryllium a motion of brightening outlook for the European motortruck market.

Traton's adjusted operating instrumentality connected sales, its main profitability metric, roseate to 9.2% successful 2024, exceeding some the 2023 fig and its forecast, though that was chiefly acknowledgment to ratio measures portion conveyance income fell.

Annual income and adjusted operating effect were unchangeable astatine 47.47 cardinal euros ($51.47 billion) and 4.38 cardinal euros, respectively.

Sales of electrical vehicles (EV) dropped by 17% to 1,739 units sold successful 2024, reducing EVs' stock successful wide income from 0.6% to 0.5%. However, incoming EV orders jumped by 60% to astir 4,000 trucks and vans, Traton said.

Waning EV income summation the hazard of Traton not gathering c emanation simplification targets, it added.

European motortruck makers struggled done past twelvemonth amid falling sales, aft pent-up request pursuing the pandemic drove them to grounds highs successful 2023.

Traton's results travel arsenic its genitor Volkswagen undergoes a large restructuring with thousands of occupation cuts successful Germany owed to shrinking European demand, rising contention from China and uncertainties astir the EV transition.

($1 = 0.9223 euros)

(Reporting by Andrey Sychev and Amir Orusov successful Gdansk; editing by Milla Nissi)