In Dialog with Till Oberwörder

Mr. Oberwörder, the bus industry has regained momentum over the years since the COVID-19 pandemic. Where does Daimler Buses stand today?
After a few challenging years, I can say with confidence: Daimler Buses is back. We delivered strong results in 2024. Our products and services are in high demand. With around 26,600 units sold, we remain the undisputed market leader in our most important core markets in Europe, Brazil and Mexico. In addition, we were able to increase our revenue by 15 percent to over 5.2 billion euros, and we achieved a strong return of 8.3 percent. Our figures show that we made the right decisions in recent years. Moreover, they confirm our strategy, and we can all be proud of that. I am confident that we will continue along this successful path in 2025.

These are impressive results. How did you manage this turnaround?
First, it was essential for demand to slowly but steadily increase again after the pandemic. People wanted to travel again, and leisure activities, day trips or going to the office became the norm again as well. That was the basic prerequisite. Secondly, it was important to invest in the future of our product portfolio, even though times were very challenging. We have consistently focused on how we can support our customers best. At the same time, we worked continuously and very hard on our efficiency and streamlined all processes. It was not easy to get there, and we had to make tough decisions in the past. But now they are paying off, and Daimler Buses is stronger and more resilient than ever before.

Let’s take a look at the current challenges. What is your company facing today?
We are in the midst of the transformation of our industry, which we, as a manufacturer, are actively driving forward together with our customers. For this, we have a clear e-roadmap across all our segments and are consistently implementing it. In line with the dual strategy of Daimler Truck, our parent company Daimler Buses is relying on both battery-electric and hydrogen-based technologies.

The fully battery-electric Mercedes-Benz eCitaro city bus has been in series production since 2018. The vehicle has also been available with a hydrogen-based fuel cell as a range extender since 2023. Our first battery-electric intercity bus, the Mercedes-Benz eIntouro, is scheduled to follow from 2026 onwards. With this vehicle, we are starting to electrify the important passenger transport segment between urban centers and rural regions. This is a major milestone and the next step in advancing the transformation towards the nationwide use of locally CO2-neutral buses. In addition, we plan to have electrically powered coaches in our portfolio by the end of the decade.

But there is still a lack of the e-infrastructure necessary for widespread use of electrified buses, right?
It depends very much on the segment, whether we are talking about bus operators from the public transport sector or more from the travel industry. But one thing applies to both: To operate electrified fleets, a widespread and reliable charging or hydrogen fueling infrastructure is required. For city bus operators, the electrification of their own depot is one of the biggest challenges. We have understood this, and our strategic approach goes far beyond the vehicle itself. We not only offer our customers electric buses, but also complete solutions for operating electric fleets. For this purpose, we established a new subsidiary, Daimler Buses Solutions GmbH, in 2023.

On request, bus operators can obtain a complete e-system from a single source, from individually configured electric buses to complete charging infrastructure for the depot, including construction, electrical installation, chargers, battery storage and digital services. Here, we have been able to gather a lot of experience together with our customers over the past few years. Overall, it can be said that city buses are a real pioneer when it comes to electrification. They clearly show that if you have the right solutions for the e-infrastructure, e-mobility works perfectly in everyday use.

However, coaches require public charging infrastructure, and this is a far greater challenge. You cannot charge a coach at the depot in the evening like a city bus. Our customers here are tour operators. They travel long distances with their passengers, for example, on vacation trips. They need to be able to charge both at managed rest stops and far away from the highway, for instance, at tourist attractions or amusement parks. There is still a big gap here, especially when we look at the ambitious CO2 targets in Europe.

How big is the gap? How many charging stations and hydrogen filling stations are actually needed?
We assume that in order to achieve the CO2 targets in Europe for 2030, approximately 35,000 fast charging points with 800 kW or more and approximately 2,000 hydrogen refueling stations are needed. This means, from now on, around five hundred new charging points will have to be built every month. Instead, today we have a total of far fewer than 1,000 charging points for heavy commercial vehicles throughout Europe, which also have too little charging capacity. Progress with hydrogen filling stations is even slower. There is still a lot to do here. We are relying on an intense dialog with policymakers, energy suppliers and our customers. Only if all parties involved are fully committed to driving electrification forward will it work in the long term and across the board.

What do you think the future holds for the bus industry and where do you see further potential for you as a manufacturer?
We are absolutely convinced that the future of buses is electric. Consequently, we plan for further growth in the area of e-mobility as well as beyond vehicles and infrastructure. An important factor will be that our customers need to have long-term confidence in the technology of our electric-powered buses. They must be able to use electric buses economically and for as long as conventionally powered vehicles.

To this end, we have introduced new services, especially for e-buses, to extend the useful life of electrically powered buses. For example, we now offer our customers reworked batteries for electric buses through a standardized remanufacturing process and will expand our portfolio in 2026 to include a latest-generation battery replacement that offers a longer range. We aim to ensure long-term, and thus, sustainable use in the vehicle with the remanufacturing and replacement of batteries. This makes us pioneers in the industry and gives our customers confidence.

So, does that mean the portfolio of Daimler Buses covers the entire life cycle of electrified vehicles?
Exactly. At the beginning of the transformation, it was important to have electric products in our portfolio and to support our customers in converting their depots. The first vehicles have now been in use since 2018. We need to think ahead in terms of e-mobility and offer our customers corresponding services for these vehicles, too. Best example: Our first-generation Mercedes-Benz eCitaro city buses are still in successful use today. The new e-services help to ensure that this remains the case for many years to come. This sends a clear message that E-buses are here to stay!

Many people question the future of old batteries when vehicles are decommissioned. Do you already have plans for this?
We are already thinking in a kind of closed-loop model and have solutions ready. After the first life of the batteries in the vehicle, we offer solutions for what are known as »repurpose« applications. Here, the former high-voltage batteries of the e-buses are used, for example, in energy storage units to compensate for peak loads in the power grid or as intermediate storage units in solar and wind farms. Subsequently, at the end of the life cycle, we offer, together with partners, recycling opportunities to recover bound raw materials as far as possible.

To summarize: Buses are now on the way to becoming even more sustainable?
At this point, it is particularly important for me to emphasize one thing. Buses and coaches are already today one of the most sustainable means of transportation, even with conventional drives. Many people are not aware that they cause one of the lowest CO2 emissions per capita when traveling long distances by coach, for example. With the transformation, our vehicles will become even more sustainable. Consequently, even more sustainable means of transport will meet the increasing demand for sustainable transportation. This creates a perfect synergy, and thus, makes an important contribution to mitigating climate change. We are firmly convinced that this is the »decade of the bus«.