Daimler AG to be renamed as Mercedes-Benz Group AG on Feb 1

By Arya M Nair, Intern Reporter
  • Follow author on
Mercedes-Benz
Representational Image

Daimler AG, a German automaker and the parent company of Mercedes-Benz, will be formally renamed as Mercedes-Benz Group AG on February 1, almost a year after it announced a fundamental design change in its truck and bus division, in a drive to unlock shareholder value for the company.

Daimler AG formally adopted the Mercedes brand in 1902. This move is the latest in a series of structural changes for the carmaker, that began its life as Daimler-Benz AG in 1926, combining Daimler Motor Company with engineering autos firm Benz & Cie.

“The goal is undoubtedly to release the company’s value potential,” stated Mr. Ola Kaellenius, chairman of Daimler AG and CEO of Mercedes-Benz, without specifying a particular target price for the company, which is now valued at slightly under $85.70 billion.

Daimler Truck AG’s shares, which spun off from Mercedes-Benz in December and are now trading at $36. Mercedes-Benz shares have soared to their highest levels since 2015 after the spin-off was announced in February, reaching $83 on the day of the split, but have since trended slightly lower to trade at $79.

The spin-off was meant to give pure-play investors more unique offerings, as shareholders increasingly reward conventional automakers whose values are dwarfed by Tesla for having their clear electrification strategy.

The reorganization is carried out in order to take on the different technological challenges by the two companies as the auto sector moves away from combustion engines. “More sustainable vehicles were the goal for both companies but the roads we will take to get there are different,” Mr. Kallenius said.

Daimler is the leader in the global commercial vehicle business in terms of sales, market share and global reach. It generates about $48.8 billion in revenue and sells more than half a million trucks and buses in a typical year.

Related: Renault-Nissan-Mitsubishi Alliance unveils common projects for future EVs


YOU MAY LIKE