Daimler plans to spin off Daimler Truck as a separate business and establish two independent pure-play companies, eventually renaming the car part of the business as Mercedes-Benz.
The Germany-based company said this “fundamental change in its structure” is “designed to unlock the full potential of its businesses in a zero-emissions, software-driven future.”
In a Feb. 3 news release, the company said Mercedes-Benz “will be the world’s pre-eminent luxury car business, committed to leading in electric drive and car software,” while “Daimler Truck will accelerate its path towards zero emissions as the world’s largest truck and bus producer and technology leader.”
“Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses, with specific customer groups, technology paths and capital needs,” said Ola Källenius, chairman of the board of management of Daimler and Mercedes-Benz, in the release.
The Daimler Truck business will have fully independent management and stand-alone corporate governance, including an independent chairman of the supervisory board. The separate listing of Daimler Truck in Frankfurt planned for year-end 2021.
Mercedes-Benz and Daimler Truck will each be supported by dedicated captive financial and mobility service entities. The company plans to assign resources and teams from today’s Daimler Mobility to both Mercedes-Benz and Daimler Truck.
The new Daimler Truck will accelerate the execution of its strategic plans, according to the announcement, driving forward with its development of emissions-free technologies for trucks and buses.
The final decision on the spin-off has to be made by an extra-ordinary shareholder meeting of Daimler, which is planned to take place in the third quarter.
This story originally appeared at truckinginfo.com