Axle and engine shortages stall Daimler's North American truck ramp-up

Daimler Truck North America assembled fewer trucks than planned in the third quarter of 2026 because third-party axle and engine suppliers couldn't keep pace — and Q4 has brought little relief, CEO Karin Radstrom told analysts on the company's Nov. 6 earnings call.

The numbers underneath tell a stranger story. DTNA sold 45,629 trucks and buses in Q3, up 51% from 30,225 a year earlier, and revenue jumped 43% to $6.36 billion from $4.45 billion. Yet the shortfall in parts hurt plant efficiency and inflated costs. Cost of sales rose 37% to $5.23 billion, partly because Daimler paid a premium to rush late components to its assembly lines.

What does this change for shippers and fleets?

Deliveries, mostly. DTNA expects it will struggle to catch up on production before year-end, though Radstrom hopes the backlog clears by early 2027. Any fleet that ordered a Freightliner or Western Star this year should assume patience remains part of the spec.

The squeeze traces back to spring, when DTNA asked suppliers to hire staff, buy raw materials and add shifts ahead of a steep production ramp-up. The rebound spread from the spot market into contract and dedicated haulage, and some suppliers simply couldn't scale fast enough.

Cummins, which supplies engines alongside Daimler's in-house Detroit Diesel division, confirmed the pressure. "The pace of the industry's production ramp-up has created challenges across the supply chain, and we have experienced some component constraints, particularly in axles," a spokesperson for the Columbus, Ind.-based manufacturer told Transport Topics on Nov. 6. "We're encouraged to see the continued strengthening in the North American truck market."

Where the trucks actually went

The Q3 sales split across North America:

• United States: 40,084 vehicles, up 54% year over year
• Canada: 3,830 trucks and buses, up 39%
• Mexico: 1,455 units, up 9%

Orders told a more mixed tale. DTNA booked 29,357 orders in the quarter, up 12% from 26,168 a year earlier but down 17% against Q2 — a sign the initial surge is settling into something steadier.

CFO Eva Scherer put a figure on the scramble: expedited freight costs ran in the "low to mid double-digit" millions of dollars in Q3 alone. "I still expect a high impact from expedited freight in the fourth quarter because we will do everything to get the trucks to our customers," she said. Translation: the premium freight bills continue, and someone absorbs them.

The parent's numbers and the 2027 bet

At group level, Daimler Truck remains firmly carried by its North American arm. Group revenue hit $14.01 billion in Q3, up 19% from $11.76 billion, while profit climbed 73% to $782 million from $453.5 million a year earlier. DTNA, which also owns Thomas Built Buses and Freightliner Custom Chassis, is driving those earnings.

Capacity is expanding on the ground. Freightliner is adding workers at its Saltillo, Mexico plant, and a slim majority of Freightliner and Western Star trucks built in North America come from the two Mexican facilities. DTNA is also hiring at its Mount Holly, N.C. plant.

Radstrom's outlook for 2027 rests on one indicator above all: freight rates. "The most important [key performance indicator] for us is the freight rates, and that has continued to develop positively," she told analysts. "We walk into 2027 quite comfortable that the fundamentals are good. We know there is replacement demand in the market, which should support demand even further during 2027."

One caveat remains regulatory. Daimler Truck wants clarity on noncompliance penalties tied to the EPA's 2027 nitrogen oxides rules, which would sharpen planning for both OEMs and buyers.

DTNA may also reveal a new U.S. plant site by Christmas, per earlier reporting — a signal that the capacity bet extends well beyond the current cycle. If freight rates hold, 2027 looks like the year the supply chain finally has to keep up with the market, rather than the other way around.