Auto manufacturer Daimler to separate into two companies
Founded in 1998, automotive manufacturer - - has announced plans to fundamentally change its structure, separating its operations into two pure-play companies. The new structure is said to be designed to unlock the full potential of its businesses in a ‘zero-emissions, software-driven future.’
“This is a historic moment for Daimler. It represents the start of a profound reshaping of the company. Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs. Mercedes-Benz is the world’s most valuable luxury car brand, offering the most desirable cars to discerning customers. Daimler Truck supplies industry leading transportation solutions and services to customers. Both companies operate in industries that are facing major technological and structural changes. Given this context, we believe they will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure,” Ola Källenius, Chairman of the Board of Management of Daimler and Mercedes-Benz.
It was agreed by the Supervisory Board and the Board of Management of Daimler that the company would evaluate a spin-off of its Truck and Bus business, with preparations being made for a separate listing of Daimler Truck.
It is also expected that Daimler Truck will be listed on the stock exchange before the end of 2021, with the company having further plans to rename itself as Mercedes-Benz at the appropriate time.
Simplifying Daimler’s structure
WIth a focused corporate structure, Mercedes-Benz and Daimler Truck will be supported by dedicated captive financial and mobility service entities. The two companies will drive sales with tailor-made financing, leasing and mobility solutions, increasing retention and building customer loyalty.
“We have confidence in the financial and operational strength of our two vehicle divisions. And we are convinced that independent management and governance will allow them to operate even faster, invest more ambitiously, target growth and cooperation, and thus be significantly more agile and competitive,” comments Källenius.
Daimler Truck: targeting growth and new technologies
When it comes to generating value for shareholders, Daimler Truck plans to accelerate the execution of its strategic plans to raise its profitability and drive its development of emissions free technologies.
“This is a pivotal moment for Daimler Truck. With independence comes greater opportunity, greater visibility and transparency. We will grow further and continue our leadership in alternative powertrains and automation. We have already defined the future of our business with battery-electric and fuel-cell trucks, as well as strong positions in autonomous driving. With targeted partnerships we will accelerate the development of key technologies to bring best-in-class products to our customers rapidly,” said Martin Daum, Member of the Board of Management of Daimler and Chairman of the Board of Management of Daimler Truck.