German auto giant Daimler on Wednesday announced plans for a major shakeup of its operations.
Daimler's board has agreed to spin off the company's bus and truck division into a new, publicly listed entity to be called Daimler Truck.
Daimler Truck will be listed on the Frankfurt Stock Exchange by the end of 2021, with the majority of shares in the new entity to be distributed to existing Daimler shareholders. Daimler itself will also retain a minority stake in Daimler Truck.
The board also agreed to renaming Daimler as Mercedes-Benz at an “appropriate time” in the future. Mercedes-Benz will then focus on passenger vehicles and vans, as well as software development.
Daimler headquarters in Stuttgart, Germany
The move is to help strengthen the Mercedes-Benz brand and further distinguish between the car and commercial vehicles operations as the industry faces major technological and structural changes in the areas of electrification and self-driving capability.
“This is a historic moment for Daimler,” Ola Kaellenius, CEO of Daimler, said in a statement. “It represents the start of a profound reshaping of the company.”
Currently responsible for Daimler's bus and truck division is Martin Daum. The division is among the world's biggest manufacturers of commercial vehicles and has more than 100,000 employees and seven brands serving markets across the globe. It's also working on self-driving technology as well as battery- and hydrogen-electric powertrains.
Further details on the spin off will be announced in the third quarter of 2021.