Traton raises lower end of outlook amid growing US truck orders
Traton's Financial Performance and Market Dynamics
Updated 2026 Growth Outlook
July 23 (Reuters) - Volkswagen's truck unit Traton raised the lower end of its 2026 growth outlook on Thursday, expecting its sales revenue to be flat or grow by up to 7%, instead of the previously given range of -5% to +7%.
Improved Operating Return Forecast
The truckmaker also hiked its full-year forecast for operating return on sales to between 6.3% and 7.3%, from 5.3% to 7.3% previously.
Order Intake and Regional Performance
Surge in U.S. Orders
It reported a 30% rise in its half-year order intake to 181,900 vehicles, driven by a 141% uptick in U.S. orders, with the company citing pent-up demand due to market uncertainty.
Impact of U.S. Tariffs
U.S. President Donald Trump in May increased tariffs on cars and trucks imported from the European Union to 25%, from the previously agreed 15%, saying the bloc had not complied with its trade deal with Washington. In September 2025, he had already raised duties on heavy-duty trucks to that level.
Traton supplies the U.S. market through its manufacturing sites in Mexico, which are covered by the USMCA free trade agreement. However, the non-U.S. content of those imports is still subject to the 25% tariff issued under Section 232 of the Trade Expansion Act of 1962.
European and South American Markets
The company's European order intake rose by 10% in the first half of 2026. However, orders from Germany lagged behind other countries, as the German fiscal stimulus did not translate into order gains in Traton's home market.
Meanwhile in Brazil, Traton was able to benefit from an increase in a government financing programme, with new subsidies helping to boost overall truck orders in South America by 22%.
Reporting Credits
(Reporting by Simon Ferdinand Eibach and Emanuele Berro in Gdansk; editing by Milla Nissi-Prussak)