Daimler is planning an organizational restructuring, where Mercedes-Benz could be a legal independent entity. In addition to the existing legally independent Financial Services division, the parent company aims to create two more legally independent entities – Mercedes-Benz Cars & Vans as well as Daimler Trucks & Buses “to take greater entrepreneurial responsibility”.
Simply put, Daimler wants to move away from the current conglomerate structure into more of a holding company. Similar to how Exor controls FCA and Ferrari – two legally independent entities.
Daimler said that this plan is based on the positive results of a feasibility study. The Board of Management decided to continue with the project and to take preparatory measures, subject to the Supervisory Board approval. Daimler will invest “three-digit million euro” for these first steps.
Also, an agreement has been reached to secure Daimler’s employees’ future, which includes safeguarding employment until the end of 2029, contribution of €3 billion to pension funds and an extension of the profit-sharing bonus of Daimler AG.
The three entities (Mercedes-Benz Cars & Vans, Daimler Trucks & Buses, Financial Services) would continue to have their registered offices in Germany. Daimler AG does not plan to divest any of its divisions, said the company.
“Daimler is today facing an exceptional challenge: On the one hand, we are more successful than ever before; on the other hand, our business is changing like never before,” – Dr. Dieter Zetsche, Chairman, Daimler AG.
“Whoever aims for sustainable competitiveness and profitability must continuously evolve and adapt to rapidly changing surroundings – technologically, culturally and also structurally”.
According to several media reports, the planned spinoffs is due to the industry’s disruptive shift to self-driving and electric vehicles.