Daimler to split business into cars, trucks, mobility units

700 subsidiaries in 60 countries will be realigned into three entities

FRANKFURT — Daimler unveiled a new corporate structure on Thursday designed to give its trucks, mobility services and Mercedes-Benz car division greater scope to chase growth in an era when carmakers prepare to launch fleets of autonomous cars.

The company said it would set up three legally independent entities — Mercedes-Benz AG, Daimler Truck AG and Daimler Mobility AG, under the umbrella of Daimler AG.

Daimler board member and head of finance Bodo Uebber said, "The new structure involves reassigning more than 700 subsidiaries in over 60 countries. With this new structure we will sharpen our focus, increase entrepreneurial responsibility and protect our synergies and economies of scale."

Board Chairman and head of Mercedes cars Dieter Zetsche said: "'Project Future' is the consistent continuation of our strategy. We are reshaping our organization to put Daimler in the best position for the future: technologically, culturally – as well as structurally. At the heart of all these changes are the needs of our customers around the world: With this new structure we will be able to offer them mobility solutions even better tailored to their needs."

Daimler said one-time costs for the restructuring, including tax charges, would be "in the high three-digit-million euro range." Shareholders will vote on the new structure at the next annual meeting in May 2019.

As part of the reorganization, Daimler has struck an agreement with labor representatives that includes a pledge to secure jobs and invest in German sites, it said.

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