MUNICH/STOCKHOLM (dpa-AFX) - Traton CEO Christian Levin wants to further improve the results of the Volkswagen commercial vehicle holding company in the coming years. The SDax group has higher ambitions for the operating profit margin than the market expects, he said in an interview with the Swedish business newspaper "Dagens Industri" (Monday). The company intends to announce new and more ambitious financial targets at an upcoming Capital Markets Day. According to a spokesperson, a specific date for the event has not yet been set.

At its investor event last summer, the Volkswagen Group announced a medium-term return on sales of 9 percent for Traton's vehicle business, which is also the key strategic target. According to the Traton Capital Markets Day 2022, the 9 percent mark should be reached as early as 2024. Analysts expect an average margin of around 8% for 2023, with the margin likely to fluctuate around 8% and remain below 9% in subsequent years.

The turnaround in Traton's business is now complete, Levin said optimistically. Scania is back in the double-digit margin range, the US acquisition Navistar has increased profitability and gained market share. The long-time problem child, the Munich-based truck manufacturer MAN, has finally shown that it can deliver a decent return after 15 years.

The North American market should remain strong this year, said Levin. In Europe, however, business is likely to slow down from a record level. However, if 300,000 heavy-duty trucks are sold in Europe, it will still be a very strong market. Brazil is showing clear signs of a turnaround after the downturn in 2023. The order book as a whole will carry Traton well into the second half of the year with good sales prices.

According to Levin, he is hoping for a larger free float of Traton shares. Around 90 percent of the shares belong to the Volkswagen Group./men/nas/mis