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Daimler split in two, renamed Mercedes-Benz corporation

The name change from Daimler to Mercedes-Benz Corporation will officially take effect from next February.

Recently, Daimler Group – the parent company of the luxury car brand Mercedes-Benz – has announced the separation into 2 independent units. The first unit is Daimler Truck Holding AG, which specializes in the production of commercial vehicles only. Meanwhile, Daimler was renamed Mercedes-Benz Group AG and is also the second unit, focusing on passenger car production. This change will officially take effect from February next year.

The above decision was made during the Extraordinary General Meeting held on October 1, 2021. Shareholders have also been asked to approve the renaming of the Daimler group to Mercedes-Benz Group AG.

The Mercedes-Benz Group will include four sub-brands: Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and Mercedes-EQ. In particular, Mercedes-AMG specializes in the production of sports and high-performance cars. Mercedes-Maybach took on the task of producing super luxury cars to compete with Rolls-Royce and Bentley. Particularly, Mercedes-EQ will specialize in producing luxury electric cars.

Meanwhile, Daimler Truck Holding AG includes sub-brands such as Freightliner, Fuso, or Western Star. Existing shareholders will have a 65% stake in the new Daimler Truck Holding AG. The remaining 35% of shares belong to Daimler. According to the plan, Daimler Truck Holding AG will start listing on the Frankfurt Stock Exchange as an independent company before the end of 2021.

“Daimler will split into two independent and powerful companies,” said Ola Källenius, Chairman of the Boards of Daimler AG and Mercedes-Benz AG. “By unleashing the full potential of both companies, we are setting up two innovation engines to pioneer industry transformation.”

Changing its name from Daimler to Mercedes-Benz Group AG partly reflects the group’s focus on passenger cars and vans. At the same time, this change also shows Daimler’s efforts in competing with Tesla and other competitors in the luxury electric car segment.

In July this year, Daimler announced that from 2030 onwards, Mercedes-Benz will only sell electric cars, but with specific conditions. Accordingly, Mercedes-Benz will only sell electric cars “if market conditions allow”. In other words, from 2030, Mercedes-Benz will still sell cars with internal combustion engines in countries with low demand for electric cars.

Mercedes-Benz has committed to invest about 40 billion euros ($47 billion) in the “electrification” of its product line between now and 2030. From 2022, Mercedes-Benz will sell electric cars in all segments. market segment. By 2025, all Mercedes-Benz models will have an all-electric version. In addition, Mercedes-Benz also launched three new platforms specifically for electric vehicles, including MB.EA for mid-size and large passenger cars, AMG.EA for high-performance cars and Van.EA for commercial vehicles.

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