Daimler reshapes structure to face market challenges

Daimler AG aims to further focus and strengthen the group’s corporate structure through the creation of legally independent entities, the company said Tuesday.

In addition to the existing legally independent division Financial Services, the divisions Mercedes-Benz Cars & Vans as well as Daimler Trucks & Buses may be transferred into two legally independent entities to take greater entrepreneurial responsibility, Daimler said in a statement sent to the Global Times.

This project intends to strengthen the viability of the business units and better utilize the potential for growth and earnings in various markets.

“Daimler is today facing an exceptional challenge: On the one hand, we are more successful than ever before; on the other hand, our business is changing like never before,” said Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz Cars.

“Whoever aims for sustainable competitiveness and profitability must continuously evolve and adapt to rapidly changing surroundings – technologically, culturally and also structurally,” Zetsche was quoted as saying in the statement.

“We are following a straightforward strategy and have decided to examine a new divisional structure for our company against this backdrop, to make sure we are optimally prepared for the challenges in the new automotive era,” noted Zetsche.

Based on the positive results of a feasibility study, the company has decided to continue with the project and in this context to take preparatory measures. Daimler will invest a three-digit million euro amount for these first steps, according to the company.