Daimler AG Strategizes Splitting up Mercedes Divisions

Daimler AG is working on a corporate holding structure that could see Mercedes-Benz Financial Services broken out into a separate entity before the company’s annual general meeting on April 5, 2019, according to a new interview with chief executive Dieter Zetsche and chief financial officer Bodo Uebber.

In the interview — from German business magazine Manager Magazin — the magazine said Zetsche and Uebber have made a preliminary plan to Mercedes-Benz cars and vans, Mercedes-Benz trucks and buses, and Mercedes-Benz Financial Services into three separate entities, a process which would unlock the value of the individual businesses. Additionally, new mobility services such as ride-hailing will be added to the financial services arm.

“Daimler is continually reviewing its optimal strategic positioning and structural set up so that it can respond to a changing competitive landscape and market,” a Daimler spokesperson said in a published report.

In July during the 2Q earnings call, Uebber said Daimler said it might split parts of its business into separate legal entities in a strategy overhaul.

“We analyzed the option to reflect the divisional structure of our company through legal separated business unit and we are aiming for further leverage growth and earnings potential for individual markets with this program and as a lead effect, there is nothing decided,” he said.

Separating the divisions legally could allow for a partial listing, and is a way to raise funds to invest in new services such as autonomous and electric cars. Analysts at Evercore ISI earlier this month said separating Daimler’s divisions could unlock value, with trucks and buses on their own worth $36 billion, according to the published report.

Separately it was announced today that a new position called, chief experience officer (CXO) has been created with Benedikt Schell taking the helm under Daimler Financial Services AG. He has responsibility for global customer and digital strategy and business model transformation. Jörg Lamparter, previously the Moovel Group chief executive, was appointed head of mobility services.