frankfurt – Shareholders of Mercedes-Benz luxury carmaker Daimler AG on Friday approved a spin-off of the truck division as a separate company.
The move is intended to give divisions including US-based Freightliner the freedom to respond rapidly to changing markets and focus on new technologies that are transforming the automotive industry.
A vote at Friday’s online shareholders’ meeting also means that Stuttgart-based Daimler will be renamed Mercedes-Benz Group AG on February 1, 2022.
“By maximizing the potential of both companies, we have established two undisputed innovation leaders to set the pace for change in the industry,” said Daimler CEO Ora Kernius. ..
One of the reasons for the spin-off is that luxury cars and trucks are taking different technological approaches to develop zero-local emissions vehicles. Mercedes-Benz focuses on battery-powered vehicles, and the truck business develops hydrogen-powered vehicles for long-distance transportation. The move aims to enable various companies to make faster, more independent decisions and serve different customer bases in a rapidly changing environment.
According to the company, luxury cars and heavy trucks are fundamentally different businesses. Mercedes-Benz’s automotive division sells luxury goods to wealthy consumers, and the truck division sells high-value products to companies focused on return on investment. Daimler hopes the split between the two businesses will reduce so-called collective discounts. This means that the two companies are valued separately from being together.
Daimler Trucks is testing the GenH2 long-range trucks that use liquid hydrogen to generate electricity from fuel cells. If the hydrogen fuel infrastructure is ready, the vehicle could be ready for use by 2027. Hydrogen trucks are needed as more electric vehicles put more pressure on the power grid as Europe’s strict emissions standards aimed at combating climate change require more electric vehicles. “Europe needs a hydrogen economy,” said Daimler Trucks CEO Martin Daum.
Daimler Trucks includes Freightliner trucks manufactured in Cleveland, NC, Mount Holly, NC, Santiago Tianguistenko, Mexico, as well as North American headquarters and styling and testing centers in Portland, Oregon.
The spin-off was approved by 99.9% of representative capital, the name change was approved by 99.9%, and the meeting was represented by 56.4% of equity capital.
Daimler shareholders will acquire one share of Daimler Truck Holding AG for every two shares they own and will acquire 65% of the new company. Daimler will retain a 35% minority interest. The company expects to be listed on the Frankfurt Stock Exchange later this year.
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Daimler trucks and luxury cars follow different roads
Source Link Daimler trucks and luxury cars follow different roads