By DAVID McHUGH, AP Business Writer
FRANKFURT, Germany (AP) – Shareholders of Daimler AG, luxury car maker Mercedes-Benz, on Friday approved the split of the truck division as a separate company.
The move aims to give the division, including US-based Freightliner, the freedom to react quickly to changing markets and to focus on new technologies that are transforming the automotive industry.
Voting at an online shareholders’ meeting on Friday also means that Stuttgart-based Daimler will rename itself Mercedes-Benz Group AG effective February 1, 2022.
Daimler CEO Ola Kallenius said that “by unleashing the full potential of both companies, we are establishing two undisputed innovation leaders who will set the tone in transforming their industries.”
One of the reasons for this fallout is that luxury cars and trucks are pursuing different technological approaches to develop local zero-emission vehicles, with Mercedes-Benz focusing on battery-powered cars while the truck industry is developing high-powered vehicles. hydrogen for long distance transport. This move aims to enable different companies to make faster and more independent decisions in a rapidly changing environment and to serve distinct customer bases.
The company claims that luxury cars and big trucks are fundamentally different businesses. The Mercedes-Benz automotive division sells a luxury product to affluent consumers, while the truck division sells expensive products to companies focused on return on investment. The split of the two companies will, Daimler hopes, reduce what it calls a conglomerate rebate, meaning the two companies would be worth more separately than they are together.
Daimler Truck Tests GenH2 Long-Haul Truck That Uses Liquid Hydrogen To Generate Electricity From A Fuel Cell; the vehicle could be ready for use by 2027 if the hydrogen fuel infrastructure is ready. Hydrogen trucks will be needed as the growing number of electric vehicles puts increased pressure on the electricity grid as stricter emission standards in Europe to tackle climate change require more electric cars. âEurope needs a hydrogen economy,â said Martin Daum, CEO of Daimler Truck.
Daimler Truck includes Freightliner trucks manufactured in Cleveland, North Carolina, Mt. Holly, North Carolina, and Santiago Tianguistenco, Mexico, as well as its North American headquarters and style and test centers in Portland, Oregon.
The demerger was approved at 99.9% of the capital represented and the name change at 99.9%, with 56.4% of the capital represented at the meeting.
Daimler shareholders must get one share of Daimler Truck Holding AG for every two shares they own, which gives them 65% of the new company. Daimler will retain a minority stake of 35%. The company expects listing to take place later this year on the Frankfurt Stock Exchange.
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