Daimler is on track to spin off Daimler Trucks
The name Daimler is often associated with its automobile division Mercedes-Benz. But the German automobile group also owns one of the biggest commercial vehicle brands – Daimler Trucks. Under the division, they own Freightliner, Mercedes-Benz Trucks, and Mitsubishi Fuso, to name a few. By the end of the year, however, Daimler Trucks could be a separate and independent company.
According to a report by Reuters, Daimler is on track to spin off Daimler Trucks by the end of the year. Specifically, Daimler Trucks will be listed on the Frankfurt stock exchange as a public independent company. The news comes from Harald Wilhelm, Chief Financial Officer of Daimler AG.
For those unfamiliar with the term “spin off”, it effectively means the commercial vehicle division will be separated from Daimler and turned into a publicly-traded entity. The majority of the shares will often be distributed to the parent company, which in this case is Daimler AG. New investors can then purchase shares of the company once it has been listed.
“We are right on schedule with the detailed preparations for this complex project and want to float Daimler Truck on the stock exchange as an independent company by the end of this year. We are convinced of the industrial logic and benefits of the planned realignment of Daimler and the spin-off of Daimler Truck,” CFO Harald Wilhelm told Automobilwoche weekly.
The planned Daimler Truck spin-off was first announced in February this year. The company says the move will help reshape the two brands as they move forward. Furthermore, once Daimler Truck is fully independent, Daimler AG will then rename itself as Mercedes-Benz. Under the planned spin-off, a significant majority stake in Daimler Trucks will be distributed to Daimler shareholders.
By separating its commercial vehicle division into a different company, Daimler/Mercedes-Benz can then focus on automobiles and prepare for an electric future. Meanwhile, Daimler Trucks will go up against truck rivals such as Volvo, Scania, and more.