By on February 3, 2021

Daimler had decided some serious changes need to be made before the end of 2021, including a name swap and separate listing for its commercial truck division. While the reason given was to better facilitate the company’s transition toward a “zero- emissions and software-driven future,” investors have been critical of Daimler’s share price after it cratered in March of last year. Though we would argue the bigger concern is the automaker’s lackluster (or absent) growth and declining revenue since 2018.

Regardless, CEO Ola Källenius believes continued changes to the firm’s corporate structure are the only way to go. By 2022, Daimler will simply be known as Mercedes-Benz and have spun off Daimler Trucks with its own listing on the Frankfurt stock exchange.

Based on rival manufacturers who have taken similar measures (e.g. Volvo), Daimler leadership assumes its truck and bus division can might see broader operating margins if its allowed to fly solo. This is especially important for Daimler’s European trucking operations, which have been struggling far worse than their American equivalent at Freightliner.

“This is a historic moment for Daimler,” Ola Källenius, Chairman of the Board of Management of Daimler and Mercedes-Benz, said in Wednesday’s release. “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.”

By raising the profitability of Daimler Trucks, it’s also assumed that the unit will be in a better position to develop and implement advanced technologies. This includes the obligatory battery and fuel-cell trucks, in addition to autonomous driving functionalities. There’s also a customer retention program in the works that will be tied to mobility and data services.

From Daimler:

As part of a more focused corporate structure, both Mercedes-Benz and Daimler Truck will also be supported by dedicated captive financial and mobility service entities, driving sales with tailor-made financing, leasing and mobility solutions, increasing retention and building customer loyalty. In this process, the company plans to assign resources and teams from today’s Daimler Mobility to both Mercedes-Benz and Daimler Truck.

While the exact timing has yet to be decided, Daimler stated that “a significant majority stake” in the trucking business will be distributed to shareholders. Daimler Truck will have a wholly independent management team and an independent Chairman of the Supervisory Board. It’s expected to be listed on the Frankfurt stock exchange by the end of 2021. A separate announcement regarding the name change (and any other tweaks made to Mercedes-Benz) has also been planned.

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

[Image: Franz12/]

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10 Comments on “Daimler Is Just Going to Be Mercedes-Benz, Says CEO...”

  • avatar
    schmitt trigger

    Does anyone else suffer a headache by simply reading the corporate-speak?

    • 0 avatar
      SCE to AUX

      Yes, agreed.

      But their CEO has finally endorsed the common use of the term “Mercedes-Benz” to describe the car company. The rest is drivel.

    • 0 avatar

      Germany needs to leave the EU, and get their Mark back, as of a decade ago. At the latest. They’re utterly cooked and done with, in very short order, if this sort of kowtowing to the infinite-free-freshprinted-money-for-the-dumbest-and-most-useless-dunces-on-the-planet nonsense continues.

      Stewards of what was once one of the world’s preeminent engineering and industrial organizations, sitting there taking marching-, or more accurately mindless babbling-, orders from illiterate, negative value add, sub-mediocre at everything, abject monkeys on nothing but central bank welfare, is nothing short of disgusting, cringeworthy and profoundly sad, all at the same time.

      What a bloody disaster.

  • avatar

    Would you like to merge or split? Either way, you can find an investment bank who can give you a list of very good reasons why merging would be ideal, or why splitting would clearly be the best course of action. (And happy to collect fees either way.)

    • 0 avatar

      Good idea. Split, merge, repeat. And in every step evaluation will go up. Synergy, either way. Nice way to pump money out of investors.

    • 0 avatar

      As long as the mindless nonsense, and fees, help further transfer resources: From from those competent enough to create value, to the sort of illiterates on central bank welfare which comprise the childish insult of a joke which is all “investment banking” is, it’s no doubt cheered on in our current by-the-dumb, for-the-dumber, for-the-benefit-of-only-the-dumbest, free falling dystopia.

  • avatar

    If they’ve been losing money since 2018 along with stagnant growth they hired the wrong guy to replace Dieter.

  • avatar

    So, DaimlerChrysler. Marriage of equals. Then first Chrysler was spun off and now Daimler too. What left is Benz and his daughter.

  • avatar

    Will any of this help the company(ies) sell more vehicles? Probably not.
    Will it help them make more profit by finagling the taxes a bit more? Most likely.
    Will they still share the parts bin? Yeah, they’ll figure out a way.

    Does anyone really care about this? Well, not really, no.

    Will Mercedes still be the German Hyundai, at least in the looks department? Signs point to yes.

  • avatar

    Always been a little bit of a confusing name, seeing as the only Daimler branded cars I’ve ever seen have been range topping Jaguars (I think they used the Vanden Plas name in the states)

    Mercedes car range was strangely never harmed by their badge being used on vans, buses and trucks. I’d say more harm has came from the easy-finance Renault-Megane-based A class, a status symbol equivalent to a Ford Focus.

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