Daimler to split into two companies, renaming itself Mercedes-Benz

KUALA LUMPUR: With an intent to focus on zero-emissions, software-driven future, the German auto giant Daimler wants to make a fundamental change in its structure. And that is breaking up its business into two different companies - Mercedes Benz and Daimler Truck; one for passenger cars and one for trucks and buses.

Yesterday, the Stuttgart-headquartered company announced the plan for this major shakeup. The Supervisory Board and the Board of Management of Daimler agreed to spin off the bus and truck division into a new, publicly listed entity to be called Daimler Truck. 

So this means, Daimler would disappear in this process and will emerge as Daimler Truck and Mercedes-Benz. The former would handle zero-emissions solutions for heavy-duty trucks and busses, while Mercedes-Benz would pursue battery-electric cars, associated technologies, and vehicle software. 

The company stated that the listing of Daimler Truck on the Frankfurt Stock Exchange will be done by the end of 2021. Daimler will retain a minority stake in the new entity, while the majority of shares will be distributed to existing Daimler shareholders. Besides, Daimler intends to rename itself as Mercedes-Benz at the appropriate time.

“Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths, and capital needs,” said Ola Källenius, Chairman of the Board of Management of Daimler and Mercedes-Benz. “Both companies operate in industries that are facing major technological and structural changes.”

“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,” said Källenius.

At present, Martin Daum handles the operations of Daimler's bus and truck division, which is one of the world's biggest manufacturers of commercial vehicles with operations in more than 35 locations around the globe. It has more than 1,00,000 employees which unite seven brands under one roof - BharatBenz, Freightliner, Fuso, Mercedes-Benz, Setra, Thomas Built Buses, and Western Star. It is also working on battery-electric, fuel-cell-electric, and self-driving technologies.

Daimler will reveal further details on the spin-off in the third quarter of 2021.

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