Daimler axes trucks unit, will become Mercedes-Benz

Daimler will drop its truck unit and instead concentrate on cars and vans. Photo: Daimler

Daimler plans a major shake-up to its operations by splitting up into the world’s largest makers of luxury cars and commercial vehicles, renaming itself Mercedes-Benz, and separately listing its truck unit.

The spinoff will appease investors who long advocated for the move, citing a stubbornly low valuation for the group company. 

While Daimler recently tweaked its corporate structure to give more independence to its main divisions, it was viewed as a half measure and did little to boost sentiment, says Europe Automotive News.

The move represents the start of a "profound reshaping of the company," said Daimler boss, Ola Kallenius in a statement.

“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 needs. Mercedes-Benz is the world’s most valuable luxury car brand, offering the most desirable cars to discerning customers,” said Kallenius.

“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," he said.

The Daimler Truck business will have fully independent management, stand-alone corporate governance including an independent Chairman of the Supervisory Board, and is targeted to qualify as a DAX company. The transaction and the listing of Daimler Truck on the Frankfurt stock exchange is expected to be complete before year-end 2021.