Daimler AG is in the process of diverting its focus into strengthening its corporate structure by granting its subsidiaries more independence to lead to bolster future success for the automotive company. The initiative revolves around the company’s pillars to protect and increase its success, shape its employees’ futures, and ensure commitment to its investments.
Part of the structure plan is to grant independence to its Financial Services, Mercedes-Benz Car and vans, and its Daimler Trucks and Buses divisions, but these subsidiaries are already legally independent. The divisions may be turned into its own entities to take on “greater entrepreneurial responsibility.”
“We are following a straight-forward strategy and have decided to examine a new divisional structure for our company against this backdrop, to make sure we are optimally prepared for the challenges in the new automotive era.” said Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.
“With this project, we are creating the conditions for greater customer and market focus and therefore more growth opportunities. Not only our customers and investors, but above all our employees would benefit from that. We are cooperating with the employee representatives at all levels,” said Bodo Uebber, Member of the Daimler Board of Management responsible for Finance & Controlling and Daimler Financial Services.
The independent subsidiary and their own entrepreneurial responsibilities will create stronger value, and also focus more on their customer market as the automotive industry begins to reshape itself.
This project will position Daimler to provide consistent and top focus in the future future for its products and mobility services as a whole corporate. Daimler will shift into focusing on cooperation and partnerships.
Daimler will also allocate 35 billion euros or $41.3 billion in investments on electric cars and other new technologies in the upcoming future and also another 3 billion euros or $3.54 billion to its pension plans.
“Daimler is today facing an exceptional challenge: On the one hand, we are more successful than ever before; on the other hand, our business is changing like never before,” said Zetsche.