While Daimler’s blockbuster plan to split up its car and truck divisions thrilled investors this week, the Mercedes-Benz maker also prepared for the reaction of workers concerned about job security.
Soon after Daimler announced it would spin off its commercial-vehicle unit and list the company separately, managers at the world’s largest heavy-truck plant in Woerth, Germany, and other sites received an emailed set of answers to questions they were likely to get from employees, according to people familiar with the matter. The key points centered around job security, spending cuts and other potential drawbacks, said the people, who asked not to be identified discussing internal matters.
The presentation sent to managers -- which Daimler declined to comment on -- is a reflection of the risk that splitting up the company’s operations will be a writing-on-the-wall moment for Daimler Truck’s shortcomings. While the business is unrivaled in terms of scale, selling almost 500,000 commercial vehicles a year pre-pandemic, its profit margins are paltry compared to its closest rival Volvo and more specialized peers such as Paccar.