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Strategic Analysis of TRATON SE, 2025

  • Company Profile

  • 78 Pages
  • September 2019
  • Frost & Sullivan
  • ID: 4841755

With Investments in Connected, Electric as well as Strategic Partnerships, the Group to Touch Revenue of €40.15 Billion by 2025

TRATON SE, erstwhile Volkswagen Truck & Bus, is on the transformational road from being a commercial truck and bus manufacturer to a mobility services provider. With the group’s MAN brand operating on wafer-thin margins while Swedish heavy-truck and bus brand Scania enjoys double-digit profit and growth, the group has laid a target of 9% profit margin in the short term.

The study also examines the pillars of Scania's commercial success and benchmarks its performance against other truck OEM brands well. MAN's RIO platform is being shaped as the base for the group's digital services in the future. TRATON is also pursuing software and device commonality of RIO with Navistar Inc's OnCommand Connection Telematics service in North America.

In the era of connected, shared, autonomous and electric (CASE) commercial vehicles, the group is rationalizing its sparse capital to make products more profitability in the present while also preparing for the future when commercial vehicle offerings will look nothing like those that are in the market today. Ownership by Volkswagen group offers TRATON SE the advantage of leveraging synergies from passenger vehicle technologies as well. TRATON will benefit in its own autonomous driving technology program through Volkswagen’s myriad partnerships such as with Microsoft, Argo AI and Ford, Audi Autonomous driving unit, etc.

TRATON SE’s IPO in June 2019 was off to a disappointing start with the company managing to raise a mere € 1.55 Billion in the capital for its strategic initiatives but its growth outlook remains robust with the host of initiatives it is taking on profit generation, new business growth, and digital solutions. It has the potential to leverage Scania’s industry-leading profitability and modularization efficiency to MAN and VW Caminhoes as well as build on strategic partnerships with Sinotruck, Navistar, Solera, etc to emerge a truly global leader in commercial vehicle space. The study looks at the performance of TRATON brands in the last 4 years, examines the activities and investments the group is making around CASE and provides an estimate of the group’s revenue in 2025.

Key Issues Addressed

  • What is TRATON SE? How does it fit into the Volkswagen Group?
  • What are the key activities around CASE by TRATON?
  • How much revenue and profit did each of the brands generate in 2018?
  • What will be the revenue of TRATON SE in 2025?
  • What makes Scania relatively so much more successful?

Table of Contents

Executive Summary
  • Executive Summary-Volkswagen (VW) Group and TRATON SE
  • Executive Summary-TRATON Group-Key Facts
  • Executive Summary-TRATON Global Footprint
  • Executive Summary-Scania: Top 5 reasons for Leadership
  • Executive Summary-TRATON Revenue Forecast 2018 and 2025

Research Scope, Objectives, Background, and Methodology
  • Research Scope
  • Research Aims and Objectives
  • Key Questions this Study will Answer
  • Research Background
  • Research Methodology
  • OEMs Compared in this Study

Strategic Imperatives and Structure of TRATON SE
  • VW Group and TRATON SE
  • From Volkswagen Truck and Bus to TRATON SE
  • TRATON-Evolution
  • TRATON Listing-A Disappointing Start
  • TRATON Group-Key Facts
  • TRATON Global Footprint
  • Strategic Alliances
  • R&D Spending

Sales Performance
  • Global Vehicle Delivery Volume-TRATON and VW CV
  • TRATON Revenue and Operation Margin
  • Scania-Top 5 Reasons for Growth and Profit Leadership
  • Scania-Pillars of Modularization
  • Scania-Leading Modular Design
  • Scania NXT-Pinnacle of Modularization
  • Scania-Thrust on Health, Wellness and Wellbeing (HWW)Technology

Electrification Roadmap
  • Alternative Powertrain Milestones
  • TRATON Common Base Engine (13L)
  • Alternative Powertrain Strategy
  • TRATON Electric Powertrain Portfolio
  • Electric Powertrain Profile-VW eDelivery
  • Electric Powertrain Profile-chargE e-school Bus by IC Bus
  • NG Powertrain Profile-Scania R410 LNG Trucks

Connected and Shared
  • TRATON Telematics Offering
  • TRATON Telematics Offering (continued)
  • RIO-the Digital Platform leading TaaS transformation
  • RIO’s Digitization Efforts-Logistics Flow of Data
  • TRATON Shared Services
  • Digitizing Freight Brokerage in Germany

Autonomous Driving Technology
  • TRATON Autonomous Driving Technology Initiatives
  • TRATON Platooning Initiative
  • Volkswagen Automotive Cloud
  • TRATON Autonomous Driving Ecosystem

Investment Activity
  • TRATON Key Investments 2009-2020
  • TRATON Key Investments

Growth Projection 2025
  • TRATON Revenue Forecast 2018 and 2025
  • TRATON Unit Sales 2014-2018, 2025 (Projection)-Truck and Bus
  • Scania Unit Sales 2014-2018, 2025 (Projection)-Engines, Used Truck
  • Service Revenue 2014-2018, 2025 (Projection)-Connected, Financial

Growth Opportunities and Companies to Action
  • Growth Opportunity 1-M&A, JVs in Electric Ecosystem
  • Strategic Imperatives

Conclusions and Outlook
  • Key Conclusions and 2025 Outlook
  • Legal Disclaimer

  • Upcoming Topics in the Commercial Vehicles Research Program
  • Legacy Content in the Commercial Vehicles Research Program
  • Market Engineering Methodology
  • List of Exhibits

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Argo AI
  • Audi
  • Ford
  • MAN
  • Microsoft
  • Navistar Inc
  • RIO
  • Scania
  • Volkswagen