This report does not constitute a rating action. Overview Key strengths Key risks Highly strategic subsidiary of its parent company and 87.5% owner, Volkswagen AG (VW), to which it has close links in terms of financing, IT services, and purchasing platforms. Competitive pressure and increasingly stringent carbon emission regulations could affect TRATON’s product portfolio and sales mix, and ultimately threaten profit margins. Leader in Europe and South America and fourth largest in North America in the heavy commercial vehicle manufacturing industry. Capital expenditure is likely to remain to meet stringent environmental targets and evolving technology shifts, at 5.5%-6.5% of industrial net sales in the coming years. The incremental modularization of its brands could improve profitability. This, coupled with the increased
