Daimler Truck Signs Letter of Intent to Establish Vehicle Assembly Plant in Senegal

Daimler Truck, the German commercial vehicle manufacturer, has signed a letter of intent with the Government of Senegal and Global Truck Systems (GTS) to set up a truck assembly plant in Senegal. Under the agreement, Daimler Truck will serve as the exclusive supplier of Completely Knocked Down (CKD) kits and act as the project’s technology partner.

The Government of Senegal and GTS have formed a joint venture to manage plant operations, with production scheduled to begin in 2026. The first locally assembled vehicles are expected to reach customers in 2027.

The new facility will assemble a range of Mercedes-Benz trucks designed for various public and private sector applications, including vehicles for the Ministry of Defense, fire and police departments, as well as trucks for waste management, construction, logistics, and transport.

Strategic Significance and Partnership Approach

Franziska Cusumano, CEO of Mercedes-Benz Special Trucks, emphasized the strategic value of the project, stating:
“The delivery of CKD kits, combined with knowledge transfer and technical support, reflects our collaborative approach with both the German Federal Government and the Republic of Senegal.”

Michael Dietz, CEO and President of Daimler Truck Middle East and Africa, added:
“This initiative showcases our long-term commitment to West Africa. By supporting local assembly, job creation, and technology transfer, we aim to foster regional economic growth and build a strong, enduring partnership between Germany and Senegal.”

Building on a Strong German-Senegalese Partnership

Germany and Senegal have a long-standing development partnership. Since 2019, both countries have worked under a bilateral reform agreement, further strengthened in 2023 through the Just Energy Transition Partnership (JETP). The CKD-based assembly project emerges as a direct result of this cooperation, promoting local industrial development and sustainability.

Senegal’s Industrial Development Drive

As part of its strategy to boost domestic production and address growing mobility demands, the Senegalese government is backing the project by allocating industrial land, offering tax and customs incentives, and facilitating worker training.

GTS to Lead Operations

Global Truck Systems will oversee the establishment and operation of the assembly facility. This includes recruiting and training personnel, designing production workflows, and assembling vehicles with optional specialized bodies such as cranes or container chassis. GTS will also manage local sales and distribution.

Daimler Truck’s Role and Contribution

Daimler Truck will ensure a robust and reliable supply chain, enforce high-quality standards, and lead technology transfer efforts. The company will also offer long-term support to guarantee the quality and durability of the trucks produced locally. The project is expected to generate skilled employment opportunities and enhance the region’s manufacturing capabilities.

A New Benchmark for Industrial Cooperation in West Africa

This collaborative effort among Daimler Truck, GTS, and the Senegalese government marks a significant step toward sustainable automotive manufacturing in West Africa. It sets a precedent for regional industrialization, economic growth, and technological advancement through international cooperation.

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