Supervisory Board of Daimler AG approves first steps to strengthen the divisional structure
STUTTGART, Germany, Oct. 25, 2017 /PRNewswire/ --
-- Supervisory Board affirms the decision of the Board of Management
-- Close consultation with employee representatives of the Supervisory
Board
-- Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG: "Also
for Daimler, further far-reaching changes will be necessary to remain
successful in a mobility sector that is also being transformed. With a
possible new structure for the Group, we intend to put the company in
the best possible position for these challenges."
-- Michael Brecht, Chairman of the Group Works Council and Deputy Chairman
of the Supervisory Board of Daimler AG: "With the new structure we want
to increase the impact and to secure employment in a long-term. It would
be the right move into the automobile future and a clear forward
strategy."
The Supervisory Board of Daimler AG has approved the plans of the Board of Management for further assessments and to carry out the first preparatory steps to strengthen the divisional structure.
Daimler AG is examining the strengthening of the Group's divisional structure through the creation of legally independent entities, in addition to the existing Daimler Financial Services unit, for the areas Mercedes-Benz Cars & Vans and Daimler Trucks & Buses. The focus on the divisional structure is intended to help strengthen the future viability of the individual businesses and better to utilize the potential for growth and earnings in the various markets. No divestment of individual divisions is planned.
"After more than 130 years, Daimler is more successful today than ever before," said Dr. Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG. "But also for Daimler, further far-reaching changes will be necessary to remain successful in a mobility sector that is also being transformed. With a possible new structure for the Group, we intend to put the company in the best possible position for these challenges."
"With the new structure we want to increase the impact and to secure employment in a long-term. It would be the right move into the automobile future and a clear forward strategy," said Michael Brecht, Chairman of the Group Works Council and Deputy Chairman of the Supervisory Board of Daimler AG.
With the possible implementation of a new structure under the roof of Daimler AG, there would be three independent legal stock corporations: Mercedes-Benz Cars & Mercedes-Benz Vans as well as Daimler Trucks & Daimler Buses as two new entities, and the existing legally independent Daimler Financial Services AG.
The project is being continued in close consultation with representatives of the employees: Management and employee representatives have already agreed on cornerstones of a balance of interests. Major elements are the extension of the agreement on safeguarding employment until the end of 2029, increasing the funded status of pension obligations and an extension of the common profit-sharing bonus of Daimler AG. Details will be negotiated within the next months.
Until now, neither the Board of Management nor the Supervisory Board of Daimler AG has made a final decision on implementing the new structure for the Daimler Group. Both boards will come to a final resolution only after the ongoing assessments and negotiations have been completed, such as tax-related issues or a comprehensive due diligence. Should the Board of Management and Supervisory Board decide to implement the new Group structure, those measures would require the approval of a shareholders' meeting of Daimler AG. Such a motion could be voted on at the earliest at a shareholders' meeting in the year 2019.
Further information from Daimler is available at:
www.media.daimler.com and www.daimler.com
Forward-looking statements:
This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "can," "could," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk and Opportunity Report" in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.
Daimler at a Glance
Daimler AG is one of the world's most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance, financial investments, credit cards, and innovative mobility services. The company's founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As a pioneer of automotive engineering, it is a motivation and commitment of Daimler to shape safely and sustainably the future of mobility: The Group's focus is on innovative and green technologies as well as on safe and superior automobiles that appeal and fascinate. Daimler consequently invests in the development of efficient drive trains with the long-term goal of locally emission-free driving: from hightech combustion engines about hybrid vehicles to electric drive trains powered by battery or fuel cell. Furthermore, the company follows a consistent path towards intelligent connectivity of its vehicles, autonomous driving and new mobility concepts. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment. Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities in Europe, North and South America, Asia, and Africa. Its current brand portfolio includes, in addition to the world's most valuable premium automotive brand, Mercedes-Benz (Source: Interbrand-Study "The Anatomy of Growth", 10/5/2016), as well as Mercedes-AMG, Mercedes-Maybach and Mercedes me, the brands smart, EQ, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses, and Daimler Financial Services' brands: Mercedes-Benz Bank, Mercedes-Benz Financial Services, Daimler Truck Financial, moovel, car2go and mytaxi. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In 2016, the Group sold around 3 million vehicles and employed a workforce of more than 282,000 people; revenue totalled EUR153.3 billion and EBIT amounted to EUR12.9 billion.
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