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.

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<p>Auto Nation Group, Inc. was established in 2014 to solely manage the importation and distribution of Mercedes-Benz vehicles in the Philippines. The company is also responsible for marketing and strengthening the German brand&rsquo;s positioning in the local automotive landscape as one of the largest upscale vehicle brands in the country.</p>

Cesar G.B. Miguel

Cesar G.B. Miguel

Author

Cesar is a graduate of AB English with previous experience working as a freelance writer for varied internet publications in-between his former stints in the Pharmaceutical Industry, and later as a First Aid Provider and Training Staff at the Iligan City Disaster Risk Reduction and Management Office.

Since childhood, Cesar has been keenly interested in cars. He has learned the ins and outs of these marvelous vehicles and is a competent amateur mechanic who is keen on sharing his knowledge.

Cesar is perceptive of car culture in general – not only in the Philippines but in global regard, as well. His knowledge ranges from the prevalent stories and trends among car enthusiasts around the world, to closely following the latest local and international developments in the automotive industry.

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