Daimler to restructure into three independent entities
The three entities - Mercedes-Benz AG, Daimler Truck AG and Daimler Mobility AG would all come under the ambit of Daimler AG and is set to become legal in 2019.
Initiated in 2017, the completion of Daimler AG into three legally independent entities is considered to be one of the biggest events in its 130-year-old corporate history. Under the new structure, Mercedes-Benz AG (cars and vans), Daimler Truck AG (Trucks and Buses) and Daimler Mobility AG (Financial and mobility services) would all enjoy greater entrepreneurial freedom, make them closer to the markets and customers and even help them to form partnerships more easily.
Implementation of ‘Project Future’
After approval from the shareholders, the management board is looking to go ahead with further procedures in the entire structural division phase that they call ‘Project Future’.
Manfred Bischoff, chairman of the supervisory board of Daimler 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."
Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, explains, " ‘Project Future’ is the consistent continuation of our strategy. We are reshaping our organisation to put Daimler in the best position for the future: technologically, culturally – as well as structurally. With the new structure, we will be able to offer them mobility solutions even better tailored to their needs."
The Daimler family is currently procuring the necessary investments in technological transformation and digitalisation and addressing the changes in customer behaviour and the volatility of markets.
Initial one-time cost is in a high three-digit million Euro range
With the new structural layout, Mercedes-Benz will have 175,000 employees, Daimler Truck will have 100,000 employees and the already legally independent Daimler Financial services, rechristened as Daimler Mobility, will house 13,000 employees for extending the mobility services from Daimler.
In order to maintain synergies, the parent company, Daimler, will continue to exercise corporate governance, strategy, management functions and even the funding. Daimler will continue to be the only company in the corporate group to be listed on the stock exchange.
The one-time costs for the corporate restructure till 2020 is slated to be in a high three-digit million Euro range while the implementation of ‘Project Future’, including all the running costs in the coming years until 2020 would amount to a very low three-digit millions of Euros.
The hive-down is set to become legally effective in the fall of 2019 after a positive vote by the shareholders and the entry in the German commercial register.
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