Americans know the German luxury car maker with the 3-pointed star logo and the longest history as Mercedes-Benz. But its parent goes by a different name for quite some time. Thanks to a series of mergers, it’s Daimler AG since 2007. That’s about to change.
Daimler will split into two separate companies. One is Daimler Truck, which will continue as the world’s largest builder of tractor-trailer trucks, operating such brands as Freightliner and the Thomas Built bus company. The other spins off car operations under the more familiar Mercedes-Benz brand.
Daimler CEO Ola Källenius explained the move as a way of granting each company flexibility: “Both companies operate in industries that are facing major technological and structural changes. Given this context, we believe they will be able to operate most effectively as independent entities.”
That independence will show most clearly in how each approaches the worldwide shift away from gasoline. Daimler’s truck business is heavily invested in research on hydrogen fuel cell technology – something most car makers have stayed away from. Mercedes-Benz, meanwhile, plans to release five new battery-electric vehicles this year alone.
