1.
MERCEDES-BENZ TRUCKS IN BRAZIL
Clara Sarah, Gilang Hredaya, Hamza Lasri, Hakim
International Business 2013

2.
OUTLINE
1. Background
• Daimler AG Profile
• Daimler Trucks Profile
2. Problem
3. Analysis
• PESTEL Analysis
• Disadvantages
4. Conclusions and Suggestions
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3.
BACKGROUND

4.
Daimler AG
1. Daimler AG is German multinational automotive
corporation
2. Headquartered in Stuttgart, Baden-Württemberg,
Germany.
3. It has several divisions, including Mercedes-Benz
Cars , Daimler Trucks , Mercedes-Benz Vans ,
Daimler buses andfinancial services .
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5.
Daimler Trucks
1. Daimler trucks develop and produce vehicles in a
global network under several brands.
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2. Market Share

6.
Daimler Trucks
3. The division’s 27 production facilities are in the NAFTA region, Europe, Asia,
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South America and Africa.

7.
CASE
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8.
Mercedes-Benz to Expand Brazilian Production Units
• Mercedes-Benz Actros to also be produced in Brazil starting 2011.
• It is necessary to open another production because Mercedes Benz main facility in Sao Bernardo do Campo will reach production
capacity limit in 2012.
• High qualification of employees and the modern installations of the Juiz De For a plant encouraged Mercedes-Benz to open production
there.
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9.
ANALYSIS
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10.
PESTEL Analysis
Political Factor
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Economic Factor
Political Risk Level Chart 2010

11.
PESTEL Analysis
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Social Factor Technological Factor

12.
PESTEL Analysis
Legal Factor
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Environmental Factor
Brazil climate varies. In Juiz De Fora, the climate is classified
as humid subtropical climate, with two distinct seasons, one
hotter and rainier (Oct-Apr), and one cooler and drier (May-
Sept).
Brazil is a civil law country in which
environmental, health and safety laws are
based derived from its Constitution.

13.
Disadvantages
Cultural and Language Barrier Potential Natural Disaster
According to Economist Intelligence Unit, 74%
of Brazilian company suffer financial losses
due to failed cross border transaction.
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With its climate and weather, Brazil’s most
common natural disaster is flood.

14.
Disadvantages
Lack of Local Engineers
1. There are approximately 20.000 annual
deficit of engineers in Brazil.
2. In 2011,only 5.1% of Brazilian college
students choose engineering as their career
path
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15.
Conclusions and Suggestions
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16.
Conclusions
Brazil is a potential place for Daimler Trucks
to expand their production units.
Daimler has made a very successful expansion in
terms of profit. However, they should also emphasize
more on the social benefit of local benefit.
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17.
Suggestions
For cultural and language barrier For Potential Natural Disaster
1. Top level managers should acknowledged
Brazilian Culture.
2. Assign local people for certain positions.
3. Face to face in giving instructions.
4. Expressive emotion during meeting even anger is
normal because it shows interest and
commitment.
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1. Provide Insurance for the facilities and workers.
2. Outsource training course for a comprehensive
disaster management.

18.
Suggestions
For Lack of Local Engineers
1. Outsourcing.
2. Daimler can expand their social responsibility
programs in terms of education such as
Daimler Knowledge College and Daimler
Young College Community.
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19.
ADDITIONAL
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20.
Daimler Nowadays
In 2012, Daimler Trucks remains the world’s biggest
manufacturer of trucks above 6 metric tons gross
vehicle weight.
In Latin America, a substantial worsening of the
overall economy and the introduction at the
beginning of the year of tougher emissions
standards in the region’s main market, Brazil, caused
sales to drop considerable.
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21.
THANK YOU
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