Daimler to Enter Light-Pickup Truck Market By End of 2017
October 25 2016 - 6:10PM
Dow Jones News
Daimler AG Chief Executive Dieter Zetsche said the German auto
maker will be participating in the global light-pickup truck market
by the end of 2017, with the company's Mercedes-Benz unit becoming
the latest premium brand to try expanding into a segment that
traditionally appealed to blue-collar buyers.
Mr. Zetsche, speaking in Stockholm on Tuesday in a webcast
presentation, said the auto maker is eager to fill a hole in its
lineup with a midsize truck that is smaller than the big pickups
popular in the U.S. He said the midsize pickup truck segment is
poised to increase 40% by 2025 and is among the "most attractive
targets" in the world.
The auto maker expects buyers to be more accepting of the pickup
body style as an everyday-use "lifestyle" vehicle due to advances
in engineering that make them more comfortable, increased
efficiency and carry more carlike attributes, Mr. Zetsche said.
Daimler had earlier outlined plans to joint-develop a pickup
truck with the Renault SA/Nissan Motor Co. alliance, and had shown
sketches of the vehicle. Mr. Zetsche's presentation included two
brawny "X-Class" concept trucks intended to show the company's
attempt to blend the company's luxury heritage with a pickup
truck's rugged stature.
While General Motors Co.'s hulking Chevrolet Silverado or Ford
Motor Co.'s F-150 are held up as iconic pickups, they are most
popular in the U.S. and not representative of what most markets
demand. The non-U.S. pickup market is far more fragmented than the
U.S. pickup sector because most full-scale auto makers have smaller
units sold in markets outside the U.S., including Volkswagen AG and
Ford.
Daimler officials said its X-Class pickups—which are about the
size of a Honda Motor Co. Ridgeline sold in the U.S.—will initially
be sold in Latin America, Australia, South Africa and Europe. No
plans have been set for the U.S. even though the midsize pickup
truck in America is enjoying resurgence as several new models hit
the market amid low gasoline prices and a move away from the
passenger cars that Mercedes is known best for. GM recently
relaunched its midsize trucks, and Ford will reintroduce its Ranger
to U.S. buyers in coming years.
Mercedes' foray into light pickup trucks follows moves by U.S.
luxury brands into the segment in recent decades.
Ford's Lincoln division once sold a pickup called the Blackwood,
but a high price tag and limited functionality led to a quick
demise. Lincoln again attempted to revise the luxury pickup truck
idea a few years later with the Mark LT, but that also failed.
GM's Cadillac brand also sold a pickup truck variant called the
Escalade EXT, which combined the cabin of an SUV with a pickup bed.
Since killing the Caddy truck, GM has designated the GMC brand as
the premium division for pickup trucks.
Trucks can command a hefty premium, with the most capable and
luxurious of models selling for nearly $80,000. Mr. Zetsche saw the
potential of the pickup market during his years in the U.S. when he
ran Fiat Chrysler Automobiles NV's Chrysler division when it
belonged to Daimler.
Daimler has had success on several projects related to heavier
trucks and capable SUVs. It has long built the Gelandewagen, or
G-Class, a rugged sport-utility vehicle built to drive to remote
locations and compete against Land Rovers or Toyota Motor Corp.'s
Land Cruisers.
Daimler also owns one of the largest heavier truck-making
operations in the world, which includes the Freightliner brand and
Western Star brands.
Write to John D. Stoll at john.stoll@wsj.com
(END) Dow Jones Newswires
October 25, 2016 17:55 ET (21:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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