Daimler to split business into cars, trucks, mobility units
FRANKFURT -- Daimler unveiled a new corporate structure on Thursday designed to give its trucks, mobility services and Mercedes-Benz car division greater scope to chase growth in an era when carmakers prepare to launch fleets of autonomous cars.
The company said it would set up three legally independent entities -- Mercedes-Benz, Daimler Truck and Daimler Mobility, under the umbrella of Daimler.
As part of the reorganization it has struck an agreement with labor representatives that includes a pledge to secure jobs and invest in German sites, it said.
Daimler Chairman Manfred Bischoff 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," Bischoff said in a statement.
Once the structure has been fully implemented the Mercedes-Benz Cars and Vans division will have around 175,000 employees worldwide, while the Daimler Trucks and Buses division will have around 100,000 employees. Daimler Financial Services, already legally independent, will be called Daimler Mobility. It will have about 13,000 employees.
All three companies will be German co-determined stock corporations ("Aktiengesellschaften") based in Stuttgart.
The structure will be submitted for approval by shareholders at Daimler's annual meeting on May 22, 2019. If approved, it would become legally effective in the fall of 2019.
The reorganization - Daimler's biggest corporate overhaul in a decade -- could pave the way for spinoffs and other deals as the automaker confronts the disruptive shift to self-driving electric vehicles, Bloomberg reported in October.
Reuters and Bloomberg contributed to this report