Daimler plans a fundamental change in its structure. The Supervisory Board and the Board of Management of Daimler agreed to evaluate a spin-off of its Truck and Bus business and begin preparations for a separate listing of Daimler Truck. With this split of the organization Daimler believes is will unlock the full potential of its businesses in a zero-emissions, software-driven future. The announcement had an immediate effect, stock price went up by 8%
The Daimler Truck business will have fully independent management, stand-alone corporate governance including an independent Chairman of the Supervisory Board, and is targeted to qualify as a DAX company. The transaction and the listing of Daimler Truck on the Frankfurt stock exchange is expected to be complete before year-end 2021. In addition, it is also Daimler’s intention to rename itself as Mercedes-Benz at the appropriate time. Manfred Bischoff, Chairman of the Supervisory Board of Daimler, sees the planned market listing as an important step to create value: „Mercedes-Benz and Daimler Truck enter this transformation with significant strengths and we are convinced they will emerge even stronger as independent companies, serving their respective customers.
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. In this process, the company plans to assign resources and teams from today’s Daimler Mobility to both Mercedes-Benz and Daimler Truck.
“This is a historic moment for Daimler”, says Ola Källenius, Chairman of the Board of Management of Daimler and Mercedes-Benz. “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. 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.”
Daimler Truck intends to generate value for its shareholders by accelerating the execution of its strategic plans, raising its profitability and driving forward with its development of emissions-free technologies for trucks and buses. At the announcement Daimler’s stock price went up by 8%.
“This is a pivotal moment for Daimler Truck. 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,” said Martin Daum, Member of the Board of Management of Daimler and Chairman of the Board of Management of Daimler Truck.
Daimler Truck is the world’s largest Truck and Bus producer, with industry leading positions in Europe, North America and Asia, and with more than 35 main locations around the globe. With more than 100,000 employees, it unites seven brands under one roof: BharatBenz, Freightliner, Fuso, Mercedes-Benz, Setra, Thomas Built Buses and Western Star. In 2019, a total of around half a million trucks and buses were delivered to customers. Revenue in 2019 for the individual divisions were €40.2 billion for Daimler Trucks and €4.7 billion for Daimler Buses. EBIT amounted to €2.5 billion for Daimler Trucks and €283 million for Daimler Buses.
