(Reuters) -Sales of Daimler Truck were hit by weakness in its Trucks North America segment in the third quarter, the German truck maker reported on Wednesday. Sales in the segment shrank by nearly 40% from the year before, at 30,225 units. Shares were down 2% on Wednesday after the sales results. An already weak German automotive sector is currently facing U.S. import tariffs, which U.S. President Donald Trump earlier this week said would be ramped up to 25% from November 1 for all medium- and heavy-dut ...

Tariff Impact - The U.S. has announced new tariffs, including a 100% tariff on branded pharmaceuticals, 50% on kitchen cabinets and bathroom vanities, and 25% on heavy trucks, aimed at incentivizing domestic manufacturing [1][2]. Market Reactions - U.S. and European pharmaceutical stocks remained stable, while Asian pharmaceutical stocks declined. Packer, a truck manufacturer, and Wayfair, an online furniture retailer, saw stock price increases due to the tariff news [3]. Economic Sentiment - The University of Michigan consumer sentiment index fell to 55.1 from 58.2, indicating concerns over high prices and job security, approaching the low seen in April [5][6]. Labor Market Data - Upcoming labor market data, including job openings and the jobs report, is crucial for understanding economic conditions, especially in light of potential government shutdowns affecting data release [7][8]. Global Manufacturing Insights - PMI surveys from the U.S., China, and the Eurozone will provide insights into global manufacturing health amidst tariff uncertainties, with recent data showing elevated input costs for U.S. companies [9][10][11]. Currency and Economic Trends - The weakening of the U.S. dollar against other currencies, particularly the euro, is noteworthy, as European and Asian equities have been outperforming due to currency strength [12]. Federal Reserve Commentary - Upcoming speeches from key Federal Reserve officials may provide insights into future monetary policy, especially in light of recent economic data [13][14].

Tariffs Announcement - The US will impose a 100% tariff on branded or patented pharmaceutical products starting October 1st, with exemptions for companies building drug manufacturing plants in the US or those with ongoing construction projects [1][2] - A 25% tariff on imported heavy trucks will also take effect on October 1st [2] - A 50% tariff will be applied to kitchen cabinets, bathroom vanities, and associated products, while a 30% tariff will be imposed on upholstered furniture, both starting on October 1st [3] National Security Justification - The president cited national security as a reason for the new tariffs on kitchen supplies and furniture, indicating a broader interpretation of national security that includes economic productive capacity [3][17] - Section 232 investigations into imports of robotics, industrial machinery, and medical devices may lead to additional tariffs, suggesting a strategic approach to tariff implementation [3][16] Impact on Agriculture - The trade war has negatively affected American farmers, particularly in soybean exports to China, prompting the president to develop a mechanism to transfer tariff revenues to support farmers [4] Trade Agreements and Exemptions - Questions arise regarding how these new tariffs will interact with existing trade agreements with countries like Japan, Korea, and Europe, particularly for products already covered under those deals [5][6] - The potential for exemptions from tariffs has raised concerns about crony capitalism and favoritism towards large businesses, as highlighted by industry leaders [8][9] Future Political Landscape - Speculation exists that even if a Democratic administration were to take power, the current tariffs may not be fully rolled back due to the political implications of harming American workers [20][21] - The ongoing use of tariffs as a tool for political leverage may complicate future trade negotiations and exemptions [22]

Electric truck production at MAN Truck & Bus in Munich. Daimler Truck Holding AG and Volkswagen AG’s Traton SE declined in early trading as Europe’s truckmakers try to decode what to make of President Donald Trump’s latest tariff salvo. Most Read from Bloomberg The US plans to impose a 25% duty on imported heavy trucks starting on Wednesday, Trump announced in a post on Truth Social, without providing more details. Daimler Truck shares fell as much as 4.9% in Frankfurt, while Traton’s stock dropped 3.1%. ...

Stellantis, the parent company of Ram, said Friday that it will no longer develop a battery-electric full-size pickup. The company cited low demand for full-size battery-electric trucks as the primary reason. https://t.co/WqTAoXDI5g ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **China Heavy-Duty Truck Sector**, particularly the growth of electric trucks (e-trucks) and their export potential to Europe and other markets [2][3][8]. Core Insights and Arguments 1. **E-Truck Sales Performance**: In H125, China sold **80,000 e-trucks**, achieving a **27% penetration** in the domestic market. The export market is identified as the next growth driver, potentially contributing **20% to 30%** of incremental revenue and profit by **2030E** [2][8]. 2. **European Market Potential**: The EU aims for a **45% reduction** in truck emissions by **2030**, with an estimated **30% penetration** of e-trucks. The European truck market, while smaller than China's, offers higher average selling prices (ASP) and gross margins [3][10][28]. 3. **Sinotruk's Position**: Sinotruk is highlighted as a leading e-truck manufacturer in China, holding a **40% market share** in truck exports. The company is expected to benefit significantly from the e-truck export trend, with a forecasted **20% EPS CAGR** from **2025 to 2027**, which is **10% above consensus** [4][8][75]. 4. **Weichai Power's Outlook**: Weichai is viewed as having a balanced risk-reward profile. While its big bore engine business is growing, the increasing penetration of e-trucks may limit growth in its traditional engine business. A **9% earnings CAGR** is forecasted for Weichai from **2024 to 2027** [107][108]. Financial Projections - **Sinotruk's Financials**: - **2026E PE**: 6.6x, below the historical average of 9x. - Expected to generate **2% of revenue** and **30% of EBIT** from e-truck exports by **2030** [8][85][94]. - **Weichai's Financials**: - Projected to maintain **350,000 engine shipments** with a **39% market share** in **2024**, but facing pressure on profit margins due to increased competition [107][108]. Additional Important Insights 1. **Export Strategy**: Sinotruk is expanding its export strategy, with plans to begin selling e-trucks overseas by **2027**. The company has established a significant global presence with **80 representative offices** in over **110 countries** [76][77]. 2. **Market Dynamics**: The e-truck market is still in its early stages, and current pricing is influenced more by market dynamics than costs. E-trucks are expected to have an ASP **3-4 times** higher than domestically sold trucks [75][85]. 3. **Parts and Services Growth**: There is potential for growth in parts and services revenue, which currently accounts for less than **10%** of Sinotruk's revenue, compared to **20-25%** for global peers [100][101]. Conclusion - The China heavy-duty truck sector, particularly the e-truck segment, is poised for significant growth, especially in export markets like Europe. Sinotruk is well-positioned to capitalize on this trend, while Weichai faces challenges in adapting to the changing market dynamics. The overall outlook for e-trucks is optimistic, with substantial potential for revenue and profit growth in the coming years [2][3][8][10].

Fiat heir John Elkann is leading the charge for his family's Exor empire to ditch trucks in favour of newer sectors like server farms and biotech labs https://t.co/1wbPN9SV5Q ...

Core Viewpoint - The article highlights the successful delivery of 50 JH6 new energy vehicles by FAW Jiefang to Guangxi Panchi Supply Chain Co., showcasing the company's commitment to the new energy vehicle market and its strategic alignment with national goals [2][14]. Group 1: Market Performance - FAW Jiefang achieved a market share of 15.8% in the new energy tractor market from January to May 2025, leading the industry and reflecting strong market recognition of its technological capabilities [2]. - The event in Nanning marked a significant milestone in the green logistics ecosystem, emphasizing the importance of collaboration with local users to create a sustainable future [14]. Group 2: Product and Service Innovation - FAW Jiefang has developed a comprehensive ecosystem covering research and development, infrastructure, and services, offering customized new energy vehicles that meet diverse market demands [5]. - The company has introduced flexible solutions such as battery leasing and vehicle leasing, along with 24/7 safety management services, to address customer pain points related to vehicle purchase and operation [5]. Group 3: Commitment to Quality and Customer Focus - FAW Jiefang emphasizes a customer-centric approach, providing high-quality products and services to support users in their business endeavors [8][14]. - The signing of new contracts during the event demonstrated customers' strong confidence in FAW Jiefang's new energy products, reinforcing the company's commitment to innovation and service excellence [10][14].

Investment Rating - The report maintains a "Buy" rating for Volvo CE, indicating confidence in its growth potential within the machinery sector [27]. Core Insights - Domestic demand for trucks is accelerating, while construction machinery demand is moderating due to factors such as replacement policies and seasonal effects [2][3]. - The growth for construction machinery may have peaked in Q1 2025, with a notable slowdown observed in recent months [3][6]. - Sany expects a 20% year-on-year growth in domestic demand for excavators for the full year, despite a challenging competitive landscape [10][12]. - The electrification of machinery is gaining traction, with significant implications for exports, particularly to Europe [14][16]. Summary by Sections Domestic Demand - There is a divergence in domestic demand, with trucks experiencing growth while construction machinery sales are moderating due to replacement policies and seasonal factors [2][3]. - Sany reported a moderation in machine fleet operating rates and utilization hours, indicating a slowdown in demand [6]. Exports - Demand for exports is stronger in Southeast Asia and Africa, while the CIS region shows weakness [9]. - Sany's excavator export volume increased by 16% year-on-year in the first five months of 2025, with a focus on Asia and Africa [12][13]. Technology and Electrification - The focus on electrification is rising, with Chinese OEMs aiming to penetrate European markets, which are more challenging under traditional internal combustion engine (ICE) standards [14][16]. - Weichai and Sinotruk anticipate a ceiling for electrification penetration in heavy-duty trucks at 25-30% due to infrastructure constraints [16]. Competitive Landscape - Pricing pressure has resurfaced in the industry, particularly for large-sized machines and electrified heavy-duty trucks (eHDTs) [17][18]. - The emergence of a "shared excavators" business model is noted, contributing to monthly sales volume but not considered real demand [20].

Investment Rating - The report maintains an "Overweight" (OW) rating for Weichai Power with a price target of HK$22.00 for the H shares and Rmb24.00 for the A shares, both with a target date of December 31, 2026 [4][13]. Core Insights - Weichai Power is positioned as a growth stock within the heavy-duty truck (HDT) and engine markets, anticipating double-digit year-on-year monthly sales growth due to the China IV HDT trade-in program starting in June/July 2025 [2][3]. - The company is making significant advancements in large-bore engines and AI Data Center (AIDC) engines, targeting sales of 10,000-12,000 units in 2025, with a goal of capturing a 10% market share in China and 5% globally for AIDC engines [7][8]. - Weichai is enhancing its new energy capabilities through collaboration with BYD, focusing on electric HDT solutions and leveraging technology and customer resources to drive growth [2][7]. Summary by Sections Heavy-Duty Truck Market - China's domestic HDT sales are expected to increase significantly due to the trade-in program, with management projecting full-year sales to reach approximately 1 million units, implying a 15-20% year-on-year growth for the remaining months of 2025 [3][4]. - Weichai holds a dominant market share of around 60% in the domestic LNG HDT engine market, positioning itself to benefit from the increased demand for LNG trucks [3][4]. Engine Development - Weichai aims to sell 1,000-1,200 AIDC units in 2025, significantly increasing from 400 units in 2024, with a production capacity expansion to 4,000 units planned for the long term [7][8]. - The company produced nearly 200 AIDC power engines in Q1 2025, with 55% of these engines destined for overseas markets, indicating strong international demand [7]. New Energy Initiatives - Weichai anticipates that EV penetration in China will reach around 30% in the medium term, up from 20% year-to-date, while addressing challenges related to long-distance EVs [7][8]. - The Yantai New Energy Industrial Park Phase I is set to produce electric solutions for various vehicle types, marking a significant step in Weichai's strategic transition towards new energy [7][8]. Valuation - The price target of HK$22.00 for Weichai Power's H shares and Rmb24.00 for A shares is based on a discounted cash flow (DCF) valuation, with a weighted average cost of capital (WACC) of 9.4% [9][14].