The world’s oldest automaker, Daimler AG, has formally renamed itself as Mercedes-Benz Group AG. As of February 1, the German car manufacturer has restored the corporate name for the first time in nearly a quarter of a century. The move marks the latest in a string of structural reorganizations.
The carmaker began its life as Daimler-Benz AG nearly a century ago, in 1926. Daimler AG officially adopted the Mercedes brand in 1902.
The premium automobile company hopes that the rebrand will unlock shareholder value. CEO Ola Kaellenius told reporters that this was a chance to “raise the multiple.” The company is currently worth slightly under $85.70 billion.
There was some immediate success to the rebrand at the end of last week. Daimler Truck AG shares, which spun off from Mercedes-Benz in December 2021, slightly rose since their debut on the market trade. In November 2021, shares for Mercedes-Benz reached their highest levels since 2015, which was on the day of the split. Since then, they have trended somewhat lower.
Experts warn however that a premium carmaker can only grow so much by battling over the luxury market in ways that are “small and finite.”
But that’s not what the company has planned. The step is meant to help unlock shareholder value for both divisions, and also, to tap into full potentials of the carmaker’s zero-emissions business.
The company is aiming to alter its car lineup to create one that is made up of exclusively electric vehicles by 2030. They will continue to develop electric vehicles that will span across all types of automobiles: cars, vans, SUVs, but also, self-driving cars and luxury cars. Daimler will handle the creation of green and zero-emission drivelines for buses and trucks, and also will integrate self-driving technology into heavy-duty vehicles.
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