Mercedes-Benz Parent Plans Sweeping Overhaul As New Tech Upends Auto Business

By Christoph Rauwald
Bloomberg

Daimler AG will carve itself into three separate units – Mercedes-Benz AG, Daimler Truck AG, and Daimler Mobility AG – in its biggest overhaul in a decade as the Mercedes-Benz car and truck maker seek to adapt to the unprecedented shift to self-driving and electric vehicles.

The need for change was evident in the German manufacturer’s second-quarter figures that showed another slump in earnings following on from the first three months of the year. Daimler warned that trade barriers, new European emissions tests, and pricing pressure will weigh in the coming months.

Thursday’s supervisory board approval takes forward a plan, in the works since last year, to establish three largely independent units to allow cars, trucks and mobility services to react faster to changing customer demands and fend off new rivals like Uber Technologies Inc. The move needs approval from shareholders, set for May. It could pave the way for spinoffs or other deals, such as a separate partial listing of its trucks unit. The company on Thursday reiterated that it has no plans for divestments.“The new structure positions Daimler to tackle the rapid pace of change in the mobility sector and the corresponding strategic challenges,” Chairman Manfred Bischoff said in a statement.

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