Stuttgart, Germany – The Supervisory Board of Daimler AG has approved the plans of the Board of Management for further assessments and to carry out the first preparatory steps to strengthen the divisional structure.
Daimler AG is examining the strengthening of the Group’s divisional structure through the creation of legally independent entities, in addition to the existing Daimler Financial Services unit, for the areas Mercedes-Benz Cars & Vans and Daimler Trucks & Buses. The focus on the divisional structure is intended to help strengthen the future viability of the individual businesses and better to utilize the potential for growth and earnings in the various markets. No divestment of individual divisions is planned.
“After more than 130 years, Daimler is more successful today than ever before,” said Dr. Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG. “But also for Daimler, further far-reaching changes will be necessary to remain successful in a mobility sector that is also being transformed. With a possible new structure for the Group, we intend to put the company in the best possible position for these challenges.”
“With the new structure we want to increase the impact and to secure employment in a long-term. It would be the right move into the automobile future and a clear forward strategy,” said Michael Brecht, Chairman of the Group Works Council and Deputy Chairman of the Supervisory Board of Daimler AG.
With the possible implementation of a new structure under the roof of Daimler AG, there would be three independent legal stock corporations: Mercedes-Benz Cars & Mercedes-Benz Vans as well as Daimler Trucks & Daimler Buses as two new entities, and the existing legally independent Daimler Financial Services AG.
The project is being continued in close consultation with representatives of the employees: Management and employee representatives have already agreed on cornerstones of a balance of interests. Major elements are the extension of the agreement on safeguarding employment until the end of 2029, increasing the funded status of pension obligations and an extension of the common profit-sharing bonus of Daimler AG. Details will be negotiated within the next months.
Until now, neither the Board of Management nor the Supervisory Board of Daimler AG has made a final decision on implementing the new structure for the Daimler Group. Both boards will come to a final resolution only after the ongoing assessments and negotiations have been completed, such as tax-related issues or a comprehensive due diligence. Should the Board of Management and Supervisory Board decide to implement the new Group structure, those measures would require the approval of a shareholders’ meeting of Daimler AG. Such a motion could be voted on at the earliest at a shareholders’ meeting in the year 2019.
