7/26/2018

Daimler to Split into 3 Companies

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Daimler AG says it plans next year to reorganize into a holding company with three legally independent entities: Mercedes-Benz, Daimler Truck and Daimler Mobility.

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Daimler AG says it plans next year to reorganize into a holding company with three legally independent entities: Mercedes-Benz, Daimler Truck and Daimler Mobility.

The carmaker will seek shareholder approval for the scheme, dubbed Project Future, at its annual meeting next May. Upon approval, the new configuration would take effect in autumn 2019.

The new structure is intended to make it easier for all three entities to pursue growth opportunities within their fields, according to Daimler. It says the fully implement plan would assign about 175,000 employees to car and van producer Mercedes-Benz AG and about 100,000 to commercial truck and bus maker Daimler Truck AG.

Daimler Mobility AG would be created by renaming and expanding Daimler Financial Services, which already is set up as legally independent subsidiary. Daimler Financial currently has about 13,000 employees.

Daimler says the cost of reassigning some 700 of its subsidiaries under the three groups will be in the “high three-digit million euro” range.

Under Project Future, Daimler has pledged to guarantee jobs in Germany through 2029. The company also vows to invest €35 billion in Germany through 2024 and will extend current pension obligations and the unified profit sharing bonus plan through 2025.