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Daimler to split business into three separate units

ABR Staff Writer Published 30 July 2018

German luxury automaker Daimler is set to split its business into three legally separate entities, Mercedes-Benz, Daimler Truck and Daimler Mobility.

The three entities will function under the umbrella of Daimler. The new structure is expected to fit for the future, where entrepreneurial freedom for the divisions will help to easily enter into partnerships.

Daimler is now moving towards the implementation phase, which is expected to take place later this year and early next year, based on business and technical criterion. The next step is secure approval from the shareholders.

Daimler supervisory board chairman Manfred Bischoff said: “The new structure positions Daimler to tackle the rapid pace of change in the mobility sector and the corresponding strategic challenges. Legally independent divisions will sharpen our focus on the future success of the business.”

Once the new structure is fully implemented, the Mercedes-Benz Cars & Vans division, under the leadership of Mercedes-Benz, will have a workforce of 175,000, worldwide.

Daimler Trucks & Buses division, on the other hand will work under the leadership of Daimler Truck and will have a workfoce of 100,000 employees around the world.

The operative businesses corresponding to Mercedes-Benz Cars & Vans and Daimler Trucks & Buses will be transferred to the new legal entities and will then operate as strong divisions, with clear focus on value creation.

Daimler Financial Services, which is already a legally independent company will be called Daimler Mobility and will have a workforce of 13,000 employees.

As the parent company Daimler will exercise corporate governance, strategy and management functions and will offer cross-divisional business services. This will help to keep the synergies between the three entities.

Daimler board of management chairman and Mercedes-Benz Cars head dieter zetsche said: “PROJECT FUTURE is the consistent continuation of our strategy. We are reshaping our organization to put Daimler in the best position for the future: technologically, culturally – as well as structurally.

"At the heart of all these changes are the needs of our customers around the world: With the new structure we will be able to offer them mobility solutions even better tailored to their needs.”

Image: Daimler's headquarters in Germany. Photo: Courtesy of Enslin/Wikipedia.org