LEINFELDEN-ECHTERDINGEN (dpa-AFX): Commercial vehicle manufacturer Daimler Truck is ramping up its defense sector activities. The group is consolidating its global operations under the new umbrella brand Daimler Truck Defence, strategically aligning the business for international expansion, according to a statement from the company based in Leinfelden-Echterdingen near Stuttgart.

Daimler Truck views the defense business as a clear growth driver for the coming years, the announcement noted. The objective is to reach annual revenue of €1bn in this segment by 2028. For context, the group's total revenue in 2025 amounted to €49.5bn.

Last year, defense revenue reached the mid-triple-digit millions, Dennis Kinzelmann, head of Daimler Truck Defence, told the Deutsche Presse-Agentur. In terms of unit sales, military vehicles currently represent a low single-digit percentage of the total. Consequently, the vast majority of vehicles sold remain traditional trucks and buses.

Team at Worth Site Set to Expand

As part of this strategic expansion, Daimler Truck will increase its development, production, sales, and service capacities over the next few years. Approximately 1,000 people are currently employed in this division, according to the statement. The growth strategy will be primarily driven from the Worth am Rhein site in Rhineland-Palatinate, near Karlsruhe, creating a corresponding demand for qualified specialists. The team in Worth is expected to grow by more than 100 new employees, Kinzelmann said.

In the future, the portfolio will expand beyond Mercedes-Benz Trucks. In addition to the Mercedes-Benz brand, the DAX-listed group also owns brands such as Western Star in North America and BharatBenz in India.

Technologically, Daimler Truck Defence draws from the modular systems of the group's civilian series and collaborates with partner companies. "Given the increased demand, we were and are in a very strong starting position," Kinzelmann said. "We are utilizing products that have already proven themselves." Models such as the Unimog and Arocs have been used for non-military applications for many years.

Commercial Vehicle Manufacturers Under Pressure

The commercial vehicle manufacturer's profit plummeted by 34 percent last year compared to the previous year, falling to €2bn. U.S. tariffs and weak demand in North America weighed heavily on the business. Revenue and unit sales also declined. In the first quarter of this year, profit collapsed by 80 percent. To improve competitiveness, Daimler Truck launched the "Cost Down Europe" savings program last year. /rwi/DP/stk