Daimler's board of management has decided on some 'first steps to strengthen its divisional structure'. This includes the creation of separate entities for its Mercedes-Benz Cars and Daimler Trucks divisions.
The move is being interpreted as facilitating the eventual break-up of the company (to raise capital for more R&D), but Daimler stressed the strengthening of the corporate structure will serve the future success of Daimler help to 'better focus on changing requirements of markets and customers'. It also said there is no plan to divest divisions of the company.
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Daimler said it has no plans for divestment of individual divisions and that it will invest more than EUR100m for the first steps.
Daimler chief Dieter Zetsche pointed out that the auto industry has to adapt to rapidly changing markets. "Whoever aims for sustainable competitiveness and profitability must continuously evolve and adapt to rapidly changing surroundings – technologically, culturally and also structurally," he said.
"We are following a straight-forward strategy and have decided to examine a new divisional structure for our company against this backdrop, to make sure we are optimally prepared for the challenges in the new automotive era."
Daimler said that approval to implement a possible new structure would be at the earliest by the shareholders' meeting in 2019.
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By GlobalDataIn addition to the existing legally independent division Financial Services, the divisions Mercedes-Benz Cars & Vans as well as Daimler Trucks & Buses may be transferred into two legally independent entities to take greater entrepreneurial responsibility.
The project 'intends to strengthen the future viability of the business units and better utilize the potential for growth and earnings in the various markets'.
Daimler also said close consultation is taking place with the employee representatives; an agreement has been reached on the cornerstones of a balance of interests to secure Daimler's employees' future. Major elements are the extension of the agreement on safeguarding employment until the end of 2029 ("Zukunftssicherung 2030"), increasing the funded status of pension obligations and an extension of the common profit-sharing bonus of Daimler AG.
"Daimler is today facing an exceptional challenge: On the one hand, we are more successful than ever before; on the other hand, our business is changing like never before," said Zetsche.
