Daimler AG keen on making Passenger Cars and CV Business Independent
Published On Oct 24, 2017
Final decision on the matter will be taken by 2019.
Daimler is one of the biggest names in the world of automobiles, boasting massive presence in various different segments with brands like Mercedes-Benz in the passenger vehicles market and Daimler Trucks & Buses in the CV market.
To further strengthen its position, Daimler is planning to bifurcate its business into two different entities. As you’d expect, the first is the passenger car business and the other is the commercial vehicle business. According to Daimler, this move will help the company to strengthen the future viability of its business units and better utilise the potential for growth and earnings in various markets.
After getting positive results on feasibility reports and a green flag from the supervisory board, the company has started taking preparatory measures for the move. It will also invest a three-digit million-euro amount for these first steps.
After the split, Daimler AG will be dealing with three individual entities - Mercedes-Benz Cars & Vans, Daimler Trucks & Buses, and the already existing Daimler Finance Services AG. All three will have their registered offices under one roof in Germany. According to Daimler, this move will provide the first two companies financial independence and enable them to be more focused and prepared to take on modern-era challenges in terms of customer satisfaction and market position.
Currently, no final decision has been made on the implementation of the new structure of the Daimler group. The final decision on the move will be taken after the board of management and the supervisory board of Daimler AG comes to a resolution, followed by an approval at the shareholders’ meeting of the company, scheduled earliest for 2019.