Daimler AG to be no more, splitting Mercedes-Benz and Daimler Truck to win EV race

The familiar Daimler AG, one of the world’s most influential car company and owner of the famed three-pointed star logo and Mercedes-Benz marque, will soon undergo a massive restructuring that will see the company broken into the two smaller, nimbler companies – one for Mercedes-Benz luxury cars (and commercial vans), and another for heavy duty Mercedes-Benz trucks and buses.

The company announced yesterday that Daimler Truck AG will be spun off as an independent company and will be floated on the Frankfurt Stock Exchange by the end of 2021.

Daimler didn’t give a specific timeline on when will it rename Daimler AG into Mercedes-Benz AG, but said it will do so “at the appropriate time.”

The company says the split is aimed at “making Mercedes-Benz the world’s pre-eminent luxury car business, committed to leading in electric drive and car software”, while Daimler Truck will “accelerate its path towards zero emissions as the world’s largest truck and bus producer and technology leader.”

Currently, the holding company Daimler AG has three subsidiaries – Mercedes-Benz AG is responsible for the Mercedes-Benz Cars & Vans division, Daimler Trucks is responsible for the trucks and buses business, and Daimler Mobility AG is its financial services arm.

The restructuring will see Daimler AG be restructured into Mercedes-Benz AG and Daimler Truck AG, while Daimler Mobility AG will be broken up and replicated within both Mercedes-Benz AG and Daimler Truck AG.

With this, Daimler (or the new Mercedes-Benz) will cease control over Daimler Truck, but will still minority shares in the new company.

Ola Källenius, Chairman of the Board of Management of Daimler and Mercedes-Benz said:

“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.”

Martin Daum, Member of the Board of Management of Daimler and Chairman of the Board of Management of Daimler Truck said:

“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.”