Daimler to split cars and trucks

One of the world’s oldest and largest auto-makers is changing its name again, as part of a major restructure of its business that will see Daimler AG’s car and van operations split from its truck and bus division.

The German auto giant also announced its intention to rename itself simply as 'Mercedes-Benz' at an appropriate time, providing further distinction between its car/van business and Daimler Truck, while its Daimler Mobility financial service teams will be redeployed to each of the two major company divisions.

Daimler says the division will better allow each business to become technology leaders in their respective fields and sharpen their focus on a zero-emissions, software-driven future.

The separate listing of Daimler Truck is expected to be completed by the end of 2021, after the approval of shareholders in the third quarter of this year. Should the restructure go ahead as planned, Daimler shareholders will be given a significant majority stake in Daimler Truck, which will become a separately listed entity on the German stock exchange.

First announced in November 2019, the move has been a major goal of Ola Källenius since he became chairman of the board of management of Daimler and Mercedes-Benz two years ago.

According to Källenius, the split will allow the firm to play to its strengths in each respective industry.

“This is a historic moment for Daimler,” he said overnight. “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.”

Källenius said the new structure would allow both arms to better embrace the rapid technological change to come.

“We have confidence in the financial and operational strength of our two vehicle divisions,” he said. “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.”

Martin Daum, member of the board of management of Daimler and chairman of the board of management of Daimler Truck, said the change would only accelerate the truck and bus operation's aspirations.

“This is a pivotal moment for Daimler Truck,” he said. “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."

Daimler’s name change will finally see the Mercedes-Benz moniker grace both the German company’s cars, SUVs and vans, and the car-maker that produces them.

Previously named Daimler-Benz and DaimlerChrysler, Daimler AG dates back to May 1924 with the merger between Daimler Motoren Gesellschaft, which was founded in 1890 by Gottlieb Daimler and Wilhelm Maybach, and Benz & Cie, which was founded by Karl Benz in 1883, making it widely regarded as the world’s oldest car-maker.

The company was renamed DaimlerChrysler when it acquired Chrysler Corporation in 1998, and then just Daimler after it sold off the US car-maker to Cerberus Capital Management in 2007.

Fiat Chrysler (and its Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, Mopar and RAM brands) is now owned by Stellantis following the merger of Fiat Chrysler Automobiles and Groupe PSA (Peugeot, Citroen, DS, Opel, Peugeot and Vauxhall).

Now one of the world’s biggest automotive corporations and headquartered in Stuttgart, Daimler controls brands including Mercedes-Benz, Mercedes-AMG, smart, Freightliner, Western Star and Maybach, which was axed in 2012 and then revived as Mercedes-Maybach in 2012.