Traton Way Forward

Traton Way Forward

  • Responsible Company
    Responsible
    Company

    Make responsible behavior a top priority in everything we do

  • Value Creation
    Value
    Creation

    Focus on sustainable value creation for our stakeholders

  • TRATON Accelerated!
    TRATON
    Accelerated!

    Actively shape our role in the future logistics ecosystem

  • Strategy Execution & Governance
    Strategy Execution &
    Governance

    Consistently take the steps we need to reach our goals

Our new strategy, the TRATON Way Forward, means that we have set clear targets for ourselves and are consistently taking the steps we need to reach them: fostering sustainability, creating long-term value, and developing new business models.

The overarching purpose — Transforming Transportation Together. For a sustainable world.

04/04

Strategy Execution &
Governance

01/04

Responsible
Company

02/04

Value Creation

03/04

TRATON
Accelerated!

01 / 04

Responsible
Company

Responsible Company

The TRATON GROUP is committed to becoming even more responsible as a company, with all brands making considerable efforts and progress in becoming more sustainable.

Decarboni­zation plays a key role in these efforts, and battery electric vehicles are our most prominent lever to contribute to climate change mitigation.

TRATON is driving electrification forward, as demonstrated by Scaniaʼs investment in battery manufacturer Northvolt and MANʼs battery pack production in Nuremberg.

MAN e-Truck
This eTruck, MAN’s first battery electric heavy-duty truck, is powered by battery packs manufactured in-house and will be available from 2024 on.

We are building a high-performance charging network in Europe:

World

>1700

public charging points

public charging points

500 m

joint investment

joint investment
  • Milence joint venture founded in July 2022 with Daimler Truck and the Volvo Group
  • Independent management team in place
  • Focus on heavy-duty long-haulage with a 45-minute charging window
  • Make open network accessible to all brands
  • Boost customer confidence in e-mobility
  • Support EU’s transition to climate-neutral transportation

We are boosting our e-mobility investments:

Battery
E-mobility
World

As part of the Group’s commitment to the Paris Agreement and to reducing emissions, all brands have validated science-based targets or are in the process of obtaining those.

Ca.

50%

of the vehicles we sell worldwide are set to be battery electric in 2030.

e-Truck Icon
02 / 04

Value Creation

Value creation

Our brands’ collaboration will become more efficient, while a sharper focus on what ­their customers need will improve their competitiveness.

We are optimizing our cost basis and creating long-term value.

We are striving to achieve
ambitious return on sales (RoS) targets:

Strategic RoS target
Scania
12%
Focus topics
  • Fully committed to sustainability
  • More high-margin services
  • Grow in China
MAN
8%
  • Realignment program & top line improvement
  • Leverage new truck generation
  • Shift to zero-emission vehicles
Navistar
9%
  • Deliver profitable performance
  • Benefit from being part of TRATON
  • Improve dealer performance
VW Truck Bus
8%
  • Volume growth and strong products
  • Higher margin by expanding portfolio of new heavy-duty vehicles
  • Continuous focus on improving efficiency

Expansion of the
Vehicle Services business

TRATON Modular System

Captive Financial Services

Target for the TRATON GROUP RoS in 2024: 9%
World

We will leverage the potential
of our brands in China:

Check World’s largest single market for commercial vehicles

Check Ca. one million trucks typically sold every year

Check Segment shift toward more sophisticated products

We are the first Western truck manufacturer
with a license for fully independent
production in China:

CheckGroundbreaking for the plant in Rugao in June 2022

Check China as an R&D hub for development and future technology and an export hub for other Asian markets

New family member

Navistar uses the Group’s Common Base Engine platform in its S13 Integrated Powertrain.

Truck / LKW

We have already achieved a lot together with our US subsidiary Navistar and are working on further goals:

Continue to harmonize Navistar’s values and culture with TRATON’s

Continue to harmonize Navistar’s
values and culture with
TRATON’s

Create solutions that drive change toward a more sustainable future

Create solutions
that drive change toward a
more sustainable future

Improve profitability to increase return on sales and enterprise value

Improve profitability
to increase return on sales
and enterprise value

Leverage Group technology and expand business models to grow revenue streams

Leverage Group technology and expand business models to grow revenue streams

03 / 04

TRATON
Accelerated!

TRATON Accelerated!

We have a clear roadmap for our electrified, connected, and automated commercial vehicles. We are developing new business models and strengthening partnerships for the transportation of tomorrow.

We are building a solution ecosystem
around our customers:

Truck
Transport
management
Fleet
management
Charging
management
Mobility
Service
Provider
Platform

Platform for autonomous driving as the key enabler

We are developing platform elements that are critical for all business models related to Autonomous Connected Electrified (ACE) vehicles:

Autonomous vehicles + services
  • ACE vehicles
  • Maintenance and repair capabilities
  • Additional services
Autonomous vehicles + services
Self-driving system
  • Virtual driver
  • Autonomous routes
Self-driving system
Control tower
  • Basic dispatching of vehicles
  • Integrated in overarching systems
  • Monitoring and remote maintenance function
Control Tower
VW Truck

Volkswagen Truck & Bus offers tailor-made services with its e-Delivery truck, for example advising customers on the best charging and energy solution for their application for optimum total operating cost.

We are setting up TRATON Financial Services, a powerful Group-wide financing unit:

TRATON Financial Services
04 / 04

Strategy Execution &
Governance

Strategy Execution & Governance

We are consistently executing the TRATON Way Forward strategy. Thanks to our new Industrial Operations setup and the TRATON Modular System, our brands’ collaboration will become even more efficient.

TRATON Modular System

Profitable mass customization based on Scania’s established Bygglåda modular system ensures long-term competitive advantage:

Taking cross-brand collaboration to a new level:

Group Product Management + Group Industrial Operations

orchestrate and intensify collaboration across all areas of the TRATON GROUP.

Batteries
E-mobility
ICE
powertrain
Autonomous
driving
Bus
solutions
Cab
Software
Chassis
Electric-
electronic
architecture
No. 1

Our Common Base Engine is the world’s most sustainable 13-liter diesel engine:

> 50%

of the truck costs are attributable to the powertrain.

> 80%

common components in the engine

Engine

The new CBE diesel
engine is being launched gradually:

Timeline
Scania

The Scania 460 R Highline is the first vehicle equipped with the 13-liter Common Base Engine, a diesel engine developed as a result of close collaboration between the TRATON brands.