Daimler AG provided more insight into plans for its largest corporate overhaul in a decade, giving more independence to Mercedes-Benz Cars & Vans, Daimler Trucks & Buses, and the existing legally independent Daimler Financial Services AG, the company said Monday in a statement.
While the overhaul was first proposed in July, neither the Board of Management nor the Supervisory Board of Daimler AG had made a final decision on implementing the new structure for the Daimler Group. The separation into independent entities is aimed at allowing “greater entrepreneurial responsibility,” as the company attempts to keep up with disruptive mobility like autonomous vehicles.
Separating the divisions legally could allow for a partial listing on the stock exchange, and is a way to raise funds to invest in new services such as autonomous and electric cars, according to a published report. However, this is “pure speculation,” Han Tjan, director of corporate communications for Daimler North America, told Auto Finance News. “Nothing has happened yet, so it is too early to tell.”
Back in July, analysts at Evercore said separating Daimler’s divisions could unlock value, with trucks and buses on their own worth $36 billion, according to the report. Daimler already has a robust and growing network of mobility services, including Car2Go, MyTaxi, Moovel, as well as investments in AutoGravity and Turo.
The three separate entities would continue to have their registered offices in Germany. Daimler AG does not plan to divest any of its divisions, the company said in the statement. Additionally, Daimler AG will not pursue any savings or efficiency program and does not intend to cut jobs.
Daimler will invest a $118 million for the “first steps” in its overhaul, although final implementation of the structure change would not be voted on until at least the shareholders’ meeting in 2019, the company said.
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