Mercedes-Benz can weather economic storm

As the HGV manufacturing industry battens down the hatches, ready for a rough ride in 2009, the world’s largest supplier of HGVs, Daimler, is more than confident that the Mercedes-Benz brand is well placed to survive the downturn. Nevertheless, despite numerous reports that the group’s luxury car division is facing the possibility of severe job cuts and working time reductions, Dr Joerg Zürn, Chief of HGV Engineering, believes that the HGV side is able to weather a 30% fluctuation in demand, with absolutely no layoff of permanent staff. Therefore, the expected major decline in HGV sales in both Europe and North America, caused by the current financial situation, will be countered by a sharp rise in demand from the so-called BRIC markets, i.e. the markets in Brazil, Russia, India and China.

Apart from all that, Daimler’s North American operation is facing a restructuring that could see the production of some Western Star and Freightliner models moving to Mexico, and so, with the Sterling brand being killed off completely. Nonetheless, Dr Joerg Zürn sees the downturn as simply a temporary blip, before complete recovery in 2010. Firmly believing that the downturn should not be regarded as something that is highly severe and even unmanageable, Zürn says: “HGVs will remain the backbone of the global economy”.