Daimler announces plans of renaming the company Mercedes-Benz. The move should preface the split between the passenger cars and trucks division.
The news was previewed by an announcement of Ola Ola Källenius. The Chairman of the Board of Management of Daimler and Mercedes-Benz said back in November 2020 that Daimler will be a smaller company.
A fundamental change in structure should take place soon within Daimler. It will, according to the company, unlock the full potential of the businesses in a zero-emission, software-driven future. The Supervisory Board and the Board of Management of Daimler agreed to evaluate the respective spin-of. They are also considering a separate listing of Daimler Truck. The Daimler shareholders will take over a significant majority stake in Daimler Truck. It will be a business with fully independent management with stand-alone governance.
The executives should decide on the transaction and listing of Daimler Truck on the Frankfurt stock exchange before the end of 2021.
Following the shift, Daimler will rename itself Mercedes-Benz.
“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”, Ola Källenius, Chairman of the Board of Management of Daimler and Mercedes-Benz stated.
“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”, Källenius added.
Daimler Truck will accelerate to profitability
Daimler Truck will thus accelerate the execution of its strategic plans, raising profitability and working on the development of emission-free technologies for trucks and buses.
“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”, said Martin Daum, Member of the Board of Management of Daimler and Chairman of the Board of Management of Daimler Truck.
Daimler Truck will carry over the lead position in the industry in Europe, North America and Asia. It is the world’s largest truck and bus manufacturer. It holds more than 35 main locations around the globe and more than 100,000 employees.
Daimler will provide further details on the restructure at the extra-ordinary shareholder meeting of Q3.
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