Daimler Trucks and Mercedes-Benz Luxury Cars Are Breaking Up

October 5th, 2021 by


Last Friday (Oct, 1), at the virtual Extraordinary General Meeting, the parent company of Mercedes-Benz, Daimler AG, approved the spinoff of their truck division. This decision was largely made due to the world’s biggest truck maker wanting to have a faster reaction to the revamp of the company and center on the new low-emission technologies transforming the automotive world. 

This voting process at the virtual shareholder meeting also signifies that Daimler will change its current moniker to Mercedes-Benz Group AG by Feb. 1, 2022.

Ola Kalleniusm, Daimler CEO, said that “by unlocking the full potential of both companies, we are establishing two undisputed innovation leaders who will set the pace in the transformation of their industries.”

A particular motive for this spinoff is that the approaches towards luxury cars and trucks are different from a technological aspect, specifically regarding the development of zero local emission vehicles. Mercedes-Benz is concentrating on battery-powered cars while the trucking company is constructing hydrogen-powered vehicles for long-haul transport. This shift is meant to allow the separate businesses to make faster and more independent decisions in an ever-changing environment and serve particular customer bases. 

Daimler says that luxury vehicles and big trucks are essentially different businesses. To put into perspective, the Mercedes-Benz car division sells luxury cars to affluent buyers, while the truck company sells high-end goods to businesses centered on getting a return on their investment. The company hopes that this separation will lessen what it’s calling a conglomerate discount, meaning that these divisions would be more valuable apart than they are together.

Daimler Truck is assessing the GenH2 long-haul truck, which is a vehicle that uses liquid hydrogen to conjure up electric power from a fuel cell. This vehicle could be ready for the road by 2027, but that’s only if the hydrogen fuel infrastructure will be ready by then. We’re definitely keeping our fingers crossed, because the increasing numbers of EVs have only put more pressure on the electricity grid as European emission standards are getting even more strict due to their efforts in combating climate change, thus the reason for the mandate for more electric cars. “Europe needs a hydrogen economy,” said Daimler Truck CEO Martin Daum.

Daimler Truck encompasses Freightliner trucks created in Cleveland, North Carolina, Mt. Holly, North Carolina and Santiago Tianguistenco, Mexico, together with its U.S. headquarters and design and test centers in Portland, Oregon.

The spinoff was accepted by 99.9% of represented capital, and the retitling by 99.9%, with 56.4% of share capital accounted for at the meeting. Daimler shareholders are set to get one share in Daimler Truck Holding AG for every couple of shares they hold, which means they get 65% of the new company. It’s worth noting, however, that Daimler will still maintain a minority interest of 35%. The company estimated that the listing will commence this year on the Frankfurt Stock Exchange.

Mercedes-Benz of Washington

One relationship that will never break away is the loyalty that Mercedes-Benz has with its customers and its commitment to providing quality products. Mercedes-Benz of Washington has plenty in store for you with a great deal of vehicles from the company that range from sedans, coupes, SUVs, and more. Those who are interested in any of our models can simply view our online new car inventory and chat with a representative for further assistance.

Photo Source/Copyright: Daimler Media