Responding to industrial changes Daimler will be split into three companies

Abstract Daimler AG plans to reorganize its current five divisions into three new companies, including Mercedes-Benz, Daimler Trucks and Daimler Mobile. The program will be submitted to the shareholders of Daimler Annual Meeting on May 22, 2019 for approval. If approved...

Daimler AG plans to reorganize its current five divisions into three new companies, including Mercedes-Benz, Daimler Trucks and Daimler Mobile. The program will be submitted to the shareholders of Daimler Annual Meeting on May 22, 2019 for approval. If approved, it will be legally effective in the fall of 2019.

As early as last October, there was news that "in response to disruptive technological changes such as autonomous driving, Daimler is considering the largest corporate change in a decade, paving the way for company splits and other transactions." The announcement of the organizational restructuring plan means that Daimler’s “change plan” has officially entered the implementation phase.

On the morning of Thursday (July 26), German local time, Daimler AG issued an organizational restructuring plan: reorganizing the current five business divisions into three new companies, including Mercedes-Benz (Mercedes-Benz) AG), Daimler Truck AG and Daimler Mobility AG.

Currently, the Daimler Board of Directors and the Board of Supervisors have agreed to the spin-off plan. Daimler said that the restructuring plan will be submitted to the shareholders of Daimler Annual Meeting on May 22, 2019 for approval. If approved, it will be legally effective in the fall of 2019.

Manfred Bischoff, chairman of the Daimler Group's supervisory board, said in a statement, "The new architecture enables Daimler to better cope with the rapid changes in the mobile travel sector and the corresponding strategic challenges. Legitimate independent entities will make us pay more attention to the future of the company. Success."

At present, Daimler Group's organizational structure is divided into five parts: Daimler Financial Services Department responsible for financial business; Daimler Truck Department responsible for truck business; Daimler Bus Department responsible for large buses; responsible for cars/SUVs, etc. Mercedes-Benz passenger car division of the model; Mercedes-Benz van sector responsible for all types of MPV.

After the reorganization, the new Mercedes-Benz truck and truck division will have 175,000 employees worldwide, and the Daimler truck and bus division will have 100,000 employees. Daimler Financial Group is currently operating independently and will be renamed Daimler Mobile Travel Group with 13,000 employees in the future. According to the organizational restructuring plan, Daimler has reached an agreement with the labor representatives on matters such as ensuring workers' employment and investing in German factories.

Daimler emphasized that the new organizational structure will give companies greater commercial freedom, more autonomy to meet market and customer needs, and easier and faster cooperation with other related companies. The headquarters of the three new companies will be at the headquarters of the Daimler Group - Stuttgart.

In fact, as early as October last year, there was news that “in response to disruptive technological changes such as autonomous driving, Daimler is considering the largest corporate change in a decade, paving the way for company splits and other transactions. "Roads" include the integration of Mercedes-Benz's passenger car and MPV business, as well as truck and large bus services into independent companies. The announcement of the organizational restructuring plan means that Daimler’s “change plan” has officially entered the implementation phase.

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