Mercedes-Benz and Daimler planning to separate

Updated Feb 04, 2021 | Same topic: Automotive Industry Updates

It’s the end of an age-old union.

On January 3, 2021, the German automotive company Daimler, released a statement that it plans to separate Daimler Trucks from Mercedes-Benz. This was decided upon in order for investors to focus on the luxury car brand for it to better compete against the likes of Tesla.

In turn, Daimler Trucks will continue to face off its age-old rivals in the European commercial vehicle market. Its list of competitors includes Volkswagen’s Traton and Paccar Inc. (Peterbilt, Kenworth), and AB Volvo (Volvo Trucks).

A picture of the Mercedes-Benz truck

Under Daimler Trucks are Mercedes-Benz Trucks, Frieghtliner, Fuso, Western Star, Thomas, and Bharatbenz

>>> Related: Mercedes-Benz makes refinement more affordable for the new year

As mentioned by Daimler chairman Ola Källenius, this is a historic moment for the German marque. He further added that both Daimler Truck and Mercedes-Benz, once separated, can perform more efficiently in the context of the changes that the automotive industry is facing.

Källenius further added that for Mercedes-Benz a “pure luxury car company is even more attractive to investors.” In turn, Daimler Trucks will also attract its own investors. These two, after all, are different businesses. For those unaware, Daimler Trucks focuses on medium to large trucks, cargo vans, and other commercial vehicles.

There’s also the point that whether we like it or not, trucks will be the last to adopt new automotive technologies like electric power. As such, Mercedes-Benz as a car brand that intends to be at the forefront of green mobility, might not want to be associated with Daimler Trucks in the long run.

A picture of the GenH2 truck concept as it travels on a road

The hydrogen powered GenH2 Truck concept

>>> Related: Mercedes-Benz confirms it is expanding its electric vehicle lineup

Make no mistake though, Daimler Trucks also has its own zero-emissions strategy, but it is totally different from Mercedes-Benz. Commercial vehicle makers are focusing on hydrogen fuel cell technology, while most passenger car companies are turning towards batteries.

Do note though that Daimler Trucks and Mercedes-Benz have been together for a couple of decades as Daimler-Benz. This started in 1926 when Daimler-Motoren-Gesellschaft and Benz & Cie. merged together into one entity. If the decision to separate is carried out once and for all, then each will adopt their respective names as corporate entities.

For the latest automotive industry news, keep it here on Philkotse.com.

Cesar G.B. Miguel

Cesar G.B. Miguel

Author

Cesar Guiderone B. Miguel was born and raised in Iligan City, Lanao Del Norte. He graduated in 2010 with a Bachelor of Arts in English degree from Mindanao State University - Iligan Institute of Technology. He previously worked as a freelance writer for various websites, as a member of the Iligan City Disaster Risk Reduction Management's training staff, and as a medical sales representative.

Facebook: https://www.facebook.com/goridus.goridus

View more