Daimler to Spin Off Truck Group

Feb. 4, 2021

Daimler announced plans to separate its truck group, which includes the Freightliner and Western Star nameplates, and list it separately as Daimler Truck.

The company said the move is “designed to unlock the full potential of its businesses in a zero-emissions, software-driven future.” The move must be approved by shareholders.

The plan is for a “significant majority” of Daimler Truck to be distributed to Daimler shareholders. The Daimler Truck business will have fully independent management with standalone corporate governance, including an independent chairman of the supervisory board.

The transaction and the listing of Daimler Truck on the Frankfurt stock exchange is expected to be complete before year-end 2021.

“This is a historic moment for Daimler,” said Ola Källenius, chairman of the board of management of Daimler, in a prepared statement. “It represents the start of a profound reshaping of the company. Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs....Given this context, we believe they will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure.”

Said Martin Daum, member of the board of management of Daimler and chairman of the board of management of Daimler Truck, in a statement:

“This is a pivotal moment for Daimler Truck. With independence comes greater opportunity, greater visibility and transparency. We will grow further and continue our leadership in alternative powertrains and automation. We have already defined the future of our business with battery-electric and fuel-cell trucks, as well as strong positions in autonomous driving. With targeted partnerships we will accelerate the development of key technologies to bring best-in-class products to our customers rapidly.

“Daimler Truck already has a solid financial basis, and our business model is robust. We will continue to work on our cash flow management and we know how to deal with industry market cycles—we have proven that again in the significant Covid-related global market reduction. We have clear strategies to raise our financial performance and accelerate our execution. We will use our strong and well-known global brands, our scale and our exceptional technology to deliver industry-leading returns”

Source: Daimler