Daimler rebrands as Mercedes-Benz Group
German auto giant spins-off truck and bus division and renames its car and van business to focus on electrificationDaimler has officially rebranded itself as the Mercedes-Benz Group in a renewed effort to refocus the business on its Benz, AMG, Maybach and EQ brands.
The decision to rename the group comes a year after it separated its passenger vehicle and commercial van businesses from its truck and bus division, which is now know as Daimler Truck AG.
Officially, the changes are claimed to enable Mercedes-Benz to 'refocus' on its transition to electrification, but it's been reported the real motivation behind the massive rebranding exercise is the hope the new entity will command a higher share price.
Marking the biggest reshuffle since the Daimler-Benz Group was founded in 1926, shares of the newly formed brand reached their highest levels since 2015 on the day of the split, with senior execs hoping future investors could begin viewing Mercedes as more of a tech firm, rather than a traditional car-maker.
"We have a real chance to raise the multiple," CEO Ola Kallenius told journalists following the split.
Shares of Daimler Truck AG have also risen slightly since their debut on the global markets.
But some industry pundits have warned that in the short-term at least, it might take some time before Benz's value catches up with the likes of Tesla.
Speaking to Reuters, RBC Capital Markets analyst Tom Narayan said: "Investors could start viewing Mercedes as a Lucid Motors or Tesla type and start to give it an EV [electric vehicle] multiple.
"But Lucid and Tesla get to start at 100% EV. For Mercedes you have to convert your existing ICE [internal combustion engine] business to EVs. That may be a limitation on how far the multiple could go near-term."
Others have said that as Benz claims an increasing foothold on the pure-electric car market its newer rivals will be the biggest losers.
"Tesla's valuation is based on the assumption that Tesla will win market share from German manufacturers, who don't have a comparable revenue growth potential," said Daniel Schwarz, an analyst at wealth management company Stifel.
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