Daimler Truck's Chief executive expresses ambivalence about company's upcoming split

In a significant move, Daimler has announced the spin-off of its truck division. This decision, according to Martin Daum, the head of the truck division, marks a historic moment.

The spin-off aims to allow both divisions, cars and trucks, to work faster and pursue different strategies. For instance, Daimler Trucks, under Daum's leadership, intends to phase out combustion engines, aligning with the global shift towards electric and alternative fuel vehicles.

Daum has expressed mixed feelings about the spin-off of his department from the parent vehicle company. However, he is determined to lead Daimler Trucks as an independent company in the DAX. His ambition is to create a company that can meet all future requirements on its own and pay an attractive dividend to shareholders.

Daimler Trucks, as an independent company, is set to operate independently in the DAX. Potential interested companies include logistics firms and automotive suppliers, attracted by Daimler Trucks' market position and growth prospects.

The spin-off does not necessarily increase the risk of a takeover of the car division, as previously denied by Daum. In fact, if there was a hypothetical danger of a takeover, it has now become significantly smaller due to the spin-off.

Another impact of the spin-off is the elimination of the attractive bonus for potential buyers of refinancing half of the purchase price by selling the truck division. This bonus is now gone, making the car division a more standalone entity.

The spin-off also allows both divisions to have separate email addresses, further emphasising their independence.

Daum has also stated that the spin-off is a historic moment, signifying a new chapter for Daimler and its two distinct divisions. He aims to bring Daimler Trucks to the DAX, positioning it for continued success in the competitive automotive industry.

Daimler Truck's Chief executive expresses ambivalence about company's upcoming split