- Daimler is divided into two: The truck and van division will become its own company that will be listed on the Dax by the end of the year.
- The remaining group will be called “Mercedes-Benz” in the future and will lead the auto and mobility division.
- Daimler boss Ola Källenius justifies the division of the group with the fact that trucks and cars are technologically developing in completely different directions. There is also an emotional component that would have immediately made sense to everyone in the group.
One should be thrifty with superlatives, but Wednesday is without a doubt a turning point for one of the largest car manufacturers in the world. Daimler is divided into two companies: The truck division will in future be its own company with its own group and supervisory board management. According to current plans, it should be listed in the DAX by the end of the year.
Daimler calls this strategic realignment “Project Focus”, it is part of the long-term strategy announced in autumn by the CEO, Ola Källenius.
The austerity program gave strength to fundamental structural changes
“This day is historic,” the Swede affirmed to journalists in a press conference. The works council welcomed the plans to split up the large tanker Daimler enthusiastically. Sensitive austerity measures from last year, such as the shedding of 10,000 jobs worldwide, would have put the group in a position of strength. And given enough strength to resolve this fundamental structural change in the company.
Was the decision by the Daimler management planned quickly? Why is it happening now of all times? And what are the real reasons for this?
On Wednesday, Källenius stated that the transformation of the automotive industry was just gaining momentum. One evening he sat down with CFO Harald Wilhelm and they both discussed what should fundamentally change in the group. One of the results of this conversation was the split of Daimler.
Daimler becomes Mercedes-Benz
The Daimler boss names three main reasons for the division: The truck and car divisions would develop in different directions technologically. While the Mercedes vehicles are being developed for battery drives, the truck division relies on fuel cells. There are simply hardly any economies of scale here. This leads Källenius to the second reason: Both divisions have so far operated under the same roof from the giant tanker Daimler. On Wednesday, Källenius indicated that the previous governance structures in the group are hampering the desired speed of transformation towards new technologies and business models. Lean structures, apparently the hope, should increase the pace in both sectors.
The final reason is the benefit to Daimler shareholders. They will now hold shares in both groups, because they will automatically be granted shares in Daimler Trucks. When both companies do well, the returns for investors increase.
Mercedes-Benz, as the pure car company will be called in the future, will still hold a minority stake in the trucks group – but this should be understood as a pure financial investment, and they do not want to re-rule there.
Källnius also gets a bit emotional that evening. The Daimler boss says that he and his fellow board members all grew up under the Mercedes roof. Nevertheless, there are car people and truck people in the company, that’s just the way it is. Internally, the decision was therefore received with enthusiasm.
The truck board member Martin Daum agrees with his boss. “The truck division is already a global company. To be honest, the truckers have dreamed of having their own company for years. Now we can finally show the world what potential we have ”.
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