FRANKFURT, Germany — Daimler will cut up itself into two unbiased corporations by spinning off its truck and bus division, a transfer the corporate stated would give each the liberty to function extra nimbly in a fast-changing surroundings targeted on zero-emission autos and software program.
The Stuttgart-headquartered firm stated Wednesday {that a} important majority stake within the truck enterprise could be distributed to present shareholders, and that Daimler would “on the acceptable time” be renamed Mercedes-Benz, the model identify beneath which it sells luxurious vehicles.
CEO Ola Kallenius stated the choice was made as a result of the companies of creating luxurious vehicles and heavy vehicles and buses “have very completely different constructions.” He stated that two corporations every targeted on their core enterprise could be extra versatile and make choices sooner as they deal with technological change.
“We’re in a really dynamic entrepreneurial surroundings,” Kallenius stated in a convention name with journalists. “Velocity of choice making… is one thing that may be enhanced in a pure play construction.”
The truck and bus division has greater than 100,000 staff and makes Freightliner vehicles and Thomas Constructed buses. It has manufacturing areas everywhere in the world, together with in Cleveland, Ohio, Woerth and Gaggenau, Germany, Sao Bernardo do Campo, Brazil, and Portland, Oregon. Engines are made on the Detroit Diesel facility in Redford, Michigan. The division had income final yr of 40.2 billion euros ($48.1 billion) for vehicles and 4.7 billion for buses.
One motive for the spinoff is that the auto enterprise and the truck enterprise are pursuing completely different applied sciences as they search to scale back automobile emissions. The luxurious automobile enterprise is bringing out new battery-powered fashions, whereas the truck enterprise is investing in hydrogen gas cell know-how.
Firm officers stated that regardless of the spinoff, the 2 corporations would nonetheless be open to cooperating on new know-how.
The market itemizing is topic to a choice by a rare shareholder assembly of Daimler shareholders to happen within the third quarter of 2021.
Daimler Board Chair Manfred Bischoff stated the transfer ought to attraction to traders: “With their completely different return profiles and capital wants, the rationale for 2 unbiased entities is obvious,” he stated in a press release. “We’re satisfied that the capital markets will admire the chance to put money into extra clearly targeted, pure-play companies.”
Daimler shares rose on the announcement and closed up 8.9% at 64.56 euros.
