Strategy
TRATON Way Forward
Ongoing climate change, the growing importance of sustainability, decarbonization, and digital transformation pose complex challenges for TRATON and also present a large number of opportunities. The TRATON GROUP’s strategy, the TRATON Way Forward, is based on a long-term vision that describes how TRATON will manage these challenges and hence the resulting changes expected in the transportation and logistics industry. As part of this strategy, TRATON has set itself the overarching goal of acting sustainably and responsibly at all times.
The TRATON Way Forward consists of three pillars, together with an additional focus on the systematic implementation and execution of the strategy. The elements are: (1) Responsible Company; (2) Value Creation; (3) TRATON Accelerated!; and (4) Strategy Execution.
Responsible Company
The TRATON GROUP intends to become even more responsible as a company in every respect. Decarbonization and circularity play a key role in this endeavor and are a top priority for us. Together with our brands, we are working hard on our purpose of transforming transportation in a sustainable way. Our objective is to generate the greatest possible benefit for our customers and society as a whole across the entire life cycle of our products. The TRATON GROUP has a strong focus on achieving its environmental goals and strengthening sustainable conduct toward people, employees, customers, suppliers, and strategic partners. Being responsible has the highest priority and influences everything we do.
As part of our strategy, we have set ourselves a target for around half of our annual new sales in the relevant regions (EU27+3 region, USA, and Canada) to be zero-emission vehicles by 2030. This target is subject to the conditions needed to achieve it, such as the expansion of the corresponding charging infrastructure, being in place. It will also allow us to make a significant contribution to the decarbonization of the global transportation sector. An example of our stronger sense of responsibility is the establishment of the Milence charging joint venture together with Daimler Truck and the Volvo Group. The joint investment of €500 million to build at least 1,700 charging points for heavy-duty trucks and coaches by 2027 is one of the key factors for the expansion of electric mobility. The first site started operating in Venlo on December 7, 2023.
Responsible Company also includes a corporate culture that focuses on people and diversity. Our understanding of the term goes beyond the popular notion of diversity. TRATON will strengthen its actions to consciously bring together and secure the inclusion of people with different experiences, educational backgrounds, and personalities. To be able to act responsibly, the Company also continues to focus increasingly on ethical principles in corporate governance.
Value Creation
The second element of the strategy is Value Creation. It focuses on a sustained increase in value for the TRATON GROUP stakeholders. It also involves tapping into additional sources of revenue and key markets to reach this goal. Making all TRATON brands even stronger is another objective. Each brand has a clearly defined strategic target return and works to deliver on it.
TRATON’s entry into the North American market in 2021 strengthened its global footprint by giving it access to the world’s largest profit pool in the commercial vehicle industry. International plays a key role in this and will be led to new strengths as part of our strategy. The measures for doing this range from using the powerful component and technology setup within the TRATON GROUP and expanding the financial services business, all the way to even more effectively leveraging International’s dealer and service network, which is one of the largest independent networks in the North American market. The development and launch of the new International S13 Powertrain on the basis of the TRATON Modular System is a key milestone.
As part of our global expansion, we will additionally strengthen our footprint in Asia by also establishing an industrial presence in China. China is the world’s largest commercial vehicle market. Chinese fleet customers are increasingly looking toward higher-end vehicles, expecting more and more in terms of efficiency and safety. TRATON will meet this demand by making appropriate investments in this region.
TRATON Accelerated!
The third element of the TRATON strategy is particularly forward-looking. In a world shaped by electrification, autonomous driving, and connectivity, TRATON will create more added value for customers in the future through new business models, solutions, and partnerships. To do this, the Company intends to create new business models and partnerships. The TRATON GROUP is accordingly expanding its perspective on business potential beyond pure transportation. What matters here is developing the right capabilities and partnerships in order to be able to help shape the transformation of the industry. In the field of autonomous driving, Scania and Rio Tinto have agreed a long-term research and development collaboration for the continuous refinement of autonomous technologies, under which Rio Tinto’s Channar Mine has become the first active partner site for Scania’s autonomous mining solution. Rio Tinto and Scania began new trials with Scania’s 40-ton autonomous mining vehicles and quickly reached a key milestone in driverless operation. Another example of this is the establishment of a joint venture called JUNA between Scania and sennder with the goal of making it easier for customers to switch to battery electric vehicles, for example by offering a truck-as-a-service business model.
Strategy Execution
The fourth element is focused on executing the strategy. Among other things, the goal is to concentrate capabilities and hence strengthen the overall competitiveness by developing a TRATON Modular System and through closer organizational integration. We laid the cornerstone by establishing new Group functions (Group Industrial Functions) for research and development and by coordinating purchasing, production, and logistics across the whole Group.
All four elements of the TRATON Way Forward are interconnected. Together, they form the strategy that makes it possible for the TRATON GROUP to create an even more responsible company, add value, and pave the way toward a sustainable future.