Daimler to split brand for zero-emissions future

Mercedes-Benz will handle cars and vans and Daimler Truck will accelerate zero-emission trucks and buses under a planned separation of Daimler’s industrial businesses.

The Germany-based company will establish two independent companies, renaming Daimler Mercedes-Benz “at the appropriate time” in a move towards zero-emissions and a software-driven future.    

“This is a historic moment for Daimler. It represents the start of a profound reshaping of the company,” Daimler and Mercedes-Benz management board chairman Ola Källenius says.

“Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs.

“Both companies operate in industries that are facing major technological and structural changes.”

Mercedes-Benz will be the world’s pre-eminent luxury car business, committed to leading in electric drive and car software, the company says.

A significant majority stake in Daimler Truck will be distributed to Daimler shareholders, with Daimler Truck due to be listed on the Frankfurt stock exchange at the end of this year.

It is intended that both companies will have strong net liquidity and will pursue ambitious financial targets with Daimler Mobility financial service teams to be allocated to the respective businesses.

“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,” Källenius adds.

Daimler Truck management board chairman Martin Daum says it will pursue battery electric and fuel cell trucks, plus autonomous driving.

It has more than 35 main locations around the world, in excess of 100,000 employees and unites seven brands under one roof – BharatBenz, Freightliner, Fuso, Mercedes-Benz, Setra, Thomas Built Buses and Western Star.

The final decision on the spin-off has to be made by an extra-ordinary shareholder meeting of Daimler, planned in Q3 2021.

An innovation fund of 1.5 billion euros will be established for Daimler Truck to enable investment in new products and technologies.