Daimler Truck considers new U.S. plant amid shifting tariff policies

The top executives of Daimler Truck Holding AG haven’t ruled out building a new U.S. production plant as they continue to adjust to shifting tariff policies.

After Daimler Truck, the parent company of the Freightliner and Western Star truck brands in North America, shared its 2025 earnings recap, CFO Eva Scherer told analysts that “it’s a bit early” to say that the manufacturer has moved on from the option of adding to its U.S. footprint as a way to offset tariff cost pressures.

“We’re still […] in discussions with the U.S. administration about how we navigate that environment,” Scherer said during a March 12 conference call. She noted that a key item on which Daimler Truck needs more clarity is the credit OEMs can receive for 3.75% of their vehicles’ suggested retail price if they’ve been assembled domestically. That incentive program is part of the truck tariffs the White House rolled out last fall.

“We’re looking at that increased U.S. content, and we will absolutely do what makes sense and what adds value to our customers and our shareholders once we have that full clarity,” Scherer added.

Also on the conference call, which Daimler Truck hosted to discuss its fourth-quarter and full-year 2025 results, Scherer noted that the company’s North American operations have traditionally been flexible in moving production between plants in the United States and Mexico. Across its North American operations, Daimler Truck finished 2025 with 25,261 employees, down more than 3,000 from the end of 2024. The executive team, led by Karin Rådström, last year held off longer than some of its peers on making major job cuts amid a struggling market, but began pushing through layoffs in the third quarter.

Daimler Truck North America (DTNA) sold a little more than 34,000 vehicles last quarter, down 27% from late 2024. The division’s full-year drop versus 2024 was roughly the same, and its earnings before interest fell 35% in 2025 to about $2.3 billion.

As their peers at Traton SE (parent of International Motors) said a few days earlier, Rådström and Scherer told investors that the pace of truck orders has remained solid early this year. Scherer said activity suggests DTNA is adding share and called out positive momentum for its flagship Freightliner Cascadia.

“Which is obviously then a good sign also for our production program and for our margin dynamics as the year progresses,” Scherer added.

In a similar vein, the CFO said the good order activity makes it more likely that buyers of Freightliner and Western Star vehicles could see slightly higher prices or tariff surcharges later this year. A big caveat there is that order momentum holds up, which the war in and near Iran could quickly affect.

Shares of Daimler Truck (Ticker: DTG) rose about 4% in Frankfurt after the company’s leaders reported results. On March 16, they closed around $48.75 and are now up about 13% over the past six months. The company’s market value is roughly $37 billion.