Axle and Engine Shortages Slow DTNA Production Despite 51% Sales Gain

Axle and engine supply constraints reduced third-quarter production at Daimler Truck North America and continued into the fourth quarter, according to Transport Topics reporting from Daimler Truck's November 6 earnings call. Some suppliers were unable to add labor, materials and shifts quickly enough as North American truck production accelerated with the freight-market recovery.

The shortages lowered assembly volume, reduced plant efficiency and forced DTNA to use more expedited transportation for delayed components. The company's third-quarter expedited freight expense was described as being in the low-to-mid double-digit millions of dollars. Management expects a difficult production catch-up through the end of 2026 but hopes operations can recover by early 2027.

Demand and sales still improved significantly. DTNA sold 45,629 trucks and buses during the quarter, 51% more than the 30,225 units sold a year earlier. U.S. sales rose 54% to 40,084 vehicles, while Canada increased 39% to 3,830 and Mexico increased 9% to 1,455. Orders totaled 29,357 units, up 12% year over year but 17% below the second quarter. Revenue reached $6.36 billion as cost of sales also increased.

For fleets, stronger reported sales do not guarantee that every configuration will arrive on schedule. Buyers should confirm current build slots, component availability and delivery terms before retiring existing tractors or promising new capacity. Maintenance teams may need to extend replacement plans for units awaiting delivery, while preserving safety and inspection standards. The situation also shows how a truck-market recovery can increase parts logistics demand and production costs before manufacturing networks fully adjust.