Daimler Chiefs Reveal the Future of Diesel and Driverless Trucks

What Daimler’s Finance and Global Chiefs Revealed About Diesel, Driverless Trucks and the Future of the Industry

Daimler Truck executives used the opening of Daimler Truck Financial Services’ new North American headquarters in Charlotte, North Carolina, to discuss several issues that are shaping equipment decisions for carriers and professional drivers: the EPA 2027 engine, freight-market conditions, higher borrowing costs, alternative powertrains and autonomous trucks.

The panel included Eva Scherer, chief financial officer of Daimler Truck Holding AG; Stephan Unger, chairman of Daimler Truck Financial Services; Kevin Bangston, president and CEO of Daimler Truck Financial Services USA; and Goetz Johanning of DTFS USA, who moderated the discussion.

Daimler expects no major EPA 2027 pre-buy

Scherer said Daimler plans to bring a fully EPA 2027-compliant Detroit engine to market. The company does not intend to rely on emissions credits or penalties to avoid compliance, she said.

The engine will share approximately two-thirds of its parts with the current generation, according to Scherer. Daimler is presenting that commonality as a way to limit the uncertainty that often comes with a new engine platform. The company also expects the engine to deliver about 3% better fuel economy while remaining competitively priced.

Despite the approaching emissions requirements, Daimler has not seen the type of pre-buy typically associated with a major regulatory change. The company released its 2027 price list in September, but orders did not surge as carriers moved to purchase trucks equipped with older engines.

Executives attributed the hesitation to uncertainty surrounding the final rules, engine strategies and potential penalties. Scherer said manufacturers are fully booked for the remainder of the year, while customers are positioning themselves for potential orders next year without making firm commitments.

For carriers, the absence of a pre-buy suggests that equipment decisions are being driven more by freight conditions, financing and operating costs than by an immediate rush to avoid the 2027 standard.

Freight conditions are improving, but the recovery remains uneven

Bangston said the freight market is showing signs of improvement after a multiyear downturn that affected Daimler’s credit portfolio. The recovery has been driven primarily by capacity leaving the market rather than by a sharp increase in freight demand.

As available capacity declined, pricing power began to return. Bangston said renegotiated rates started appearing in the financial results of on-highway customers during the second quarter, and the company’s portfolio moved from stabilization to meaningful improvement.

That improvement does not remove the pressure created by fuel costs. Bangston estimated that customers can pass through about 70% of diesel expenses using fuel surcharges, leaving carriers to absorb roughly 30% of the increase themselves.

That portion can be significant for smaller fleets and owner-operators, particularly those with limited negotiating power or inconsistent surcharge agreements. A rise in diesel prices can therefore affect a carrier’s operating margin even when freight rates appear to be improving.

Higher interest rates are changing equipment decisions

The finance executives also described a more expensive borrowing environment. Unger said interest rates and spreads remain elevated globally, while sovereign debt levels are expected to keep financial conditions tight.

Those conditions are leading more customers to consider Daimler’s captive finance operation, according to Unger. A captive lender focused on trucks may be able to structure financing with a better understanding of equipment cycles and trucking-market conditions than a general-purpose lender.

Daimler is also expanding its focus beyond traditional truck loans. The company is promoting packages that can combine financing, maintenance, repair contracts, insurance, telematics, extended warranties and residual-value arrangements into a broader monthly payment.

Unger pointed to Daimler’s Charterway operation in Europe, which provides short- and long-term rental for more than 6,000 trucks. In North America, Daimler offers full-service leasing through partnerships with Penske and Ryder.

Bangston said North American customers are showing greater interest in bundled services, but he does not see a dramatic shift away from ownership toward leasing. The choice remains dependent on each carrier’s need for flexibility, predictable costs and control over the equipment.

Autonomous trucks are being developed as a separate service

Autonomous trucking was another major topic. Scherer said Daimler expects to put its first autonomous truck on a route by the end of the year, build mileage through testing and development, and target commercialization at scale around 2028.

The system is based on an autonomy-ready Freightliner Cascadia with redundant braking and steering systems. Daimler’s autonomous subsidiary, Torc Robotics, is developing the virtual driver.

The company is designing the platform to be modular, allowing the chassis to work with different autonomous-driving providers. Daimler also described a business model in which the truck and chassis would be financed or purchased in the traditional way, while the autonomous driving capability would be provided as a per-mile software service.

That structure could give fleets a separate way to account for autonomous technology in their operating costs. Daimler said it would finance the equipment regardless of how the autonomous business model develops.

The initial rollout is expected to focus on defined routes that expand gradually, with safety determining the pace. Scherer said advances in reinforcement learning are helping autonomous systems handle routes they have not previously encountered, although the company’s commercialization plans remain forward-looking.

Daimler is taking a dual-track approach to powertrains

On powertrains, Daimler described different priorities for North America and Europe. In North America, the company is concentrating on improving diesel efficiency, beginning with the EPA 2027 engine and continuing with additional improvements planned for 2030 and beyond.

In Europe, tighter regulations are pushing the company more aggressively toward zero-emission trucks. Daimler is also investing in hydrogen technology for the 2030s.

Scherer said Daimler’s flagship long-haul electric truck holds a 38% market share in Europe, above the company’s overall market share. She added that newer battery technology used in Europe could be brought to North American products such as the electric Cascadia when demand supports it.

The company’s stated approach is to prepare for multiple powertrain paths while allowing customers and local markets to determine the pace of adoption. Daimler also said it plans to support depot and warehouse charging through customer assistance and selected partnerships rather than building charging infrastructure at scale on its own.

For drivers and carriers, the discussion pointed to an industry managing several transitions at once: a new diesel standard, tighter margins, higher financing costs and the gradual development of electric and autonomous equipment. The near-term decisions remain practical ones—fuel economy, payment terms, maintenance costs and freight rates—while the longer-term technologies continue moving toward commercial use.