Daimler to split into ‘Daimler Truck’ and ‘Mercedes-Benz’
German car and truck group Daimler has announced its intention to split its industrial business to create two independent companies. The spin-off Daimler Truck should go public and independent by the end of 2021, while Daimler’s premium car business should return to its best-known brand name of Mercedes-Benz.
Daimler Truck will concentrate on its path to zero emissions by becoming the world’s largest truck and bus manufacturer. For its part, Mercedes-Benz aims at becoming a leader in electric drive and car software. Today, ordering is opened for the new electric EQA.
The new compact EV of Mercedes-Benz, the EQA, goes on sale all over Europe. EQA is a derivative of the recently renovated GLA and will be built in Germany and China. The car will be sold in Belgium with a €52 756 price tag (€43 800 VAT excluded).
In a press release published on Wednesday, Daimler announced that its Supervisory Board and its Board of Management agreed to evaluate a spin-off of the Truck and Bus activity and begin preparations for a separate listing of Daimler Truck in Frankfurt by the end of 2021.
“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,” declared Ola Källenius, Chairman of the Board of Management of Daimler and Mercedes-Benz. “Given this context, we believe they will be able to operate most effectively as independent entities.”
Back in 2019, Daimler already reorganized its activity around the three branches of cars, trucks, and mobility services. They should be distributed between the two new entities. Daimler Truck will become the world’s largest truck and bus manufacturer, uniting seven brands under one roof (BharatBenz, Freightliner, Fuso, Mercedes-Benz, Setra, Thomas Built Buses, and Western Star).
The intended split should see Daimler transfer the majority of Daimler Truck to its shareholders. However, the parent company should keep a minority of shares and will be represented at the new Supervisory Board.