Say goodbye to Daimler AG.
The German automaker known as Daimler AG, the parent company of Mercedes-Benz, officially has a new name. In a press release, company shareholders voted overwhelmingly (99.89 percent) to rename Daimler AG as the Mercedes-Benz Group AG, effective February 1, 2022. There will be four brands: Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and Mercedes-EQ. What's not included is the truck and bus division.
As we reported last February, the commercial truck division, now called Daimler Truck Holding AG, will become its own independent company on the Frankfurt Stock Exchange by the end of this year. The two separate companies will soon be in a better position to "create decisive value added for all stakeholders."
Daimler CEO Ola Kallenius said early this year that "both companies operate in industries that are facing major technological and structural changes… [and will be able] to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure."
This is the most significant breakup of Daimler since the dissolution of the Daimler-Chrysler merger in 2007. That so-called 1998 "merger of equals" experienced problems from the beginning and Chrysler was left in a difficult position post-breakup. It took years to fully recover. Mercedes declared last summer it intends to be an all-electric automaker by 2030.
Beginning in 2025, every new vehicle platform will be electric-only. The company's EV revolution is already underway, beginning with the Mercedes EQC. The EQS, AMG-EQS, and EQE have since been revealed. Daimler Truck is also gearing up for an electrified future as it's expected to produce both battery-electric and hydrogen fuel-cell semi-trucks. The release did not state whether Kallenius will continue in his role as CEO at the truck company. Being in charge of two major global companies sounds like a heavy workload to us.
The new Mercedes-Benz Group still has plenty of challenges ahead. Domestic rivals like BMW and the Volkswagen Group are also fully onboard with EVs. And there's a certain company called Tesla. Mercedes cannot afford for its US-based rival to continue stealing the spotlight.