Daimler has begun to prepare for a spin-off of its Truck and Bus business – now named Daimler Truck – from Daimler AG that will be solely focused on accelerating the future of zero-emissions trucks.
Mercedes-Benz Cars and Vans, the company’s luxury car business, will be a separate entity, while Daimler Truck will have fully independent management, stand-alone corporate governance, including an independent chairman of the supervisory board. The company has not yet revealed when the other part of the business will be renamed to Mercedes-Benz.
“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 need,” said Ola Källenius, Chairman of the Board of Management of Daimler and Mercedes-Benz.
“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,” Källenius continued. “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 accelerate its development of emissions-free technologies for commercial trucks and buses.
“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,” said Martin Daum, Member of the Board of Management of Daimler and Chairman of the Board of Management of Daimler Truck.
“Daimler Truck already has a solid financial basis, and our business model is robust. We will continue to work on our cash flow management and we know how to deal with industry market cycles – we have proven that again in the significant COVID-related global market reduction. We have clear strategies to raise our financial performance and accelerate our execution. We will use our strong and well-known global brands, our scale and our exceptional technology to deliver industry-leading returns,” Daum added.
The transaction and the listing of Daimler Truck on the Frankfurt stock exchange is expected to be complete before year-end 2021.