In Australia, Mercedes-Benz cars and vans say the change will improve efficiencies but customers may not notice any difference.

By contrast, Daimler’s Australian truck and bus division said it will allow for an improved customer experience, especially when it comes to financial services.

It said it would launch a new financial services company later this year, tailored specifically for its truck and bus owners, which would have a sharper focus on the needs of commercial vehicle customers.  

The global move, which becomes effective from the first quarter of next year, is designed to free up each side of the cars and trucks operations from conflicting business imperatives as each faces even more complex technologies in their rush to embrace EVs and mobility initiatives. 

The move is similar to the change at the Volkswagen Group in 2018 when it spun off its commercial vehicle business – including Scania, MAN and Navistar – and named it Traton.

Daimler AG currently comprises five divisions: Mercedes-Benz Cars, Mercedes-Benz Vans, Daimler Trucks, Daimler Buses and Daimler Mobility AG. 

As of early 2022, the Mercedes-Benz Group will represent car, van and mobility developments and remain focussed on cars and vans in the luxury and premium segments. Truck and bus comes under the new Daimler Truck Holding company.

“Commercial vehicles have specific needs and are purpose-built for the professional industries deploying them, something Daimler thinks will be better catered for by a dedicated company,” the company said in a statement.

“Daimler’s commercial vehicle divisions have been working on developing battery-electric and fuel-cell trucks and researching autonomous driving options for the future of its products.

“With a greater focus on targeted partnerships, Daimler Truck Holding will accelerate the development of critical technologies to bring best-in-class products to its customers.”

The company said in a statement that each business will have a separate procurement function, fully independent management and stand-alone corporate governance, including an independent chair of the respective supervisory boards.

Under the name Project Focus, the carving up and renaming of Daimler AG is aimed at making “even greater use of growth opportunities and to increase financial success”.

Daimler AG chairman of the supervisory board, Bernd Pischetsrieder said: “Daimler Truck and Mercedes-Benz will be able to master the transformation of the industry even more successfully with full entrepreneurial freedom and an independent management structure.”

“By spinning off the commercial vehicle business, we aim to create value for our shareholders, increase our profitability and fully exploit our potential.”

The company said the separation would sharpen Mercedes-Benz’s profile as a manufacturer of luxury cars and premium vans. 

It said its car strategy was aimed at technological leadership, especially in electric vehicle technology and car software.

The company aims to focus on zero emissions in individual mobility, which it highlights as a “phenomenal growth business”.

Meanwhile, it has stated that zero emissions were also a core focus for the truck and bus division.

It said the “entrepreneurial freedom” afforded the division by the new structure will allow it to pursue this goal with greater focus and enable it to leverage scale, raise returns and further innovate.

Daimler Trucks makes a range of commercial vehicles, which in Europe are made by Mercedes-Benz at the plants in Wörth, Germany and Aksaray in Turkey. Mercedes-Benz buses are made in Mannheim, Germany, while the Setra brand is made in Ulm, also in Germany.

Daimler Trucks North America includes Freightliner Trucks, Western Star Trucks, Thomas Built Buses, Freightliner Custom Chassis and Detroit Diesel.

The new independent organisation is of particular importance on the ground in the US, according to Daimler, because the owner-operator model fits well with the principle behind Project Focus. 

“Moreover, that owner-operator is a particular type of truck customer, driving their own business in the form of a truck and, therefore, an archetypal entrepreneur,” the company said.

Daimler Trucks Holding will also incorporate the existing Fuso and Daimler India Commercial Vehicles business units.

By the end of this year, Daimler AG shareholders will hold a 65 per cent stake in Daimler Truck Holding, which will be listed on the stock exchange as an independent company and Daimler will retain a minority interest of 35 per cent in Daimler Truck Holding.

Car-maker Mercedes-Benz will have battery electric vehicles (BEV) in all segments as of next year and, from 2025 onwards, all newly-launched vehicle architectures will be electric-only. 

It said that customers will be able to choose an all-electric alternative for every model the company makes.

By Neil Dowling