Daimler to Break Off into Three Distinct Entities

Daimler announced a new corporate structure on Thursday, July 26 that will give its three divisions (cars, mobility services, and trucks) better leverage to chase growth on their own as the automotive industry in general heads towards better autonomous technology. Under the new structure, Mercedes-Benz AG (cars and people carriers), Daimler Truck AG (trucks and buses), and Daimler Mobility AG (mobility services) will each enjoy greater freedom to market to customers and forge partnerships on their own.

"The new structure positions Daimler to tackle the rapid pace of change in the mobility sector and the corresponding strategic challenges," said Manfred Bischoff, chairman of the supervisory board of Daimler. "Legally independent divisions will sharpen our focus on the future success of the business."

As part of the restructuring, Daimler AG--which shall act as the umbrella company of the three entrepreneurial entities--struck a deal with labor representatives that includes a pledge to secure jobs and invest in German locations.

With the new company structure, Mercedes-Benz will have 175,000 employees in its workforce, while Daimler Truck will have 100,000. Daimler Mobility, formerly known as Daimler Financial, will have 13,000 employees as it expands its mobility services from Daimler.

"We are reshaping our organization to put Daimler in the best position for the future: technologically, culturally--as well as structurally," explains Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. "With the new structure, we will be able to offer them mobility solutions even better tailored to their needs."

Although the three entities have the power to function independently, Daimler AG will continue to provide management functions as well as corporate governance, strategy, and funding. Daimler will also be the only company in the group that will have its name on the stock exchange.