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    Mercedes-Benz could get detached from parent Daimler

    by Mahesh Yadav on Wednesday, Oct 25 2017

    The speculations of Daimler separating from Mercedes-Benz is going pretty much rival.  Daimler, the parent company of Mercedes-Benz has started the process of creating separate legal entities for the Mercedes-Benz vehicle and Daimler Trucks divisions. This move from the German auto major has made the rumour mills churn fast saying that Mercedes-Benz brand will soon separate from its parent company Daimler. Meanwhile, Daimler has revealed in a company statement on 17th of October that the company will be investing over 100 million Euros preparing for the reorganization of the brands. The statement added by saying that the company yet has no plans to separate any of its divisions, and that the company has not made any final decisions yet.

    The speculations of Daimler separating from Mercedes-Benz is going pretty much rival.  Daimler, the parent company of Mercedes-Benz has started the process of creating separate legal entities for the Mercedes-Benz vehicle and Daimler Trucks divisions. This move from the German auto major has made the rumour mills churn fast saying that Mercedes-Benz brand will soon separate from its parent company Daimler. Meanwhile, Daimler has revealed in a company statement on 17th of October that the company will be investing over 100 million Euros preparing for the reorganization of the brands. The statement added by saying that the company yet has no plans to separate any of its divisions, and that the company has not made any final decisions yet.

    However, in the company statement itself there is a hint that the company might take a decision to separate its divisions in future, and the decision about it is still simply pending.

    Daimler has also revealed in its statement that the company has been able to make an agreement with the labor representatives which will ensure job guarantees extended until the end of the 2029. The company has also announced that a 3 billion Euro ($3.5 billion) contribution has gone to make up the Daimler Group's pension fund as well as for the extension of a profit sharing bonus.

    Earlier this year, the Chief Executive officer at Daimler, Dieter Zetsche said that German automobile giant was contemplating splitting some divisions of its business into different legal entities. This started various speculations regarding a probable break-up of the big automotive group, as it is contemplating to put large investments in autonomous as well as electric vehicle models.

    On 17th of October, 2017, Daimler revealed in a separate statement that the company was not looking for any savings or job cuts related to its planned reorganization.

    As per the market experts, separating the various divisions of Daimler would make it easier for the company to value the divisions more efficiently and also create a higher figure compared to what can be done as a combined whole group. The Daimler trucks and buses division is itself worth more than 31 billion Euros.

    This means that Mercedes-Benz could soon go solo as a separate independent identity. However, nothing is confirmed as yet. Nevertheless, what we do know is that there are several fascinating Merc models which are waiting to be launched. There are several concept models based on which Mercedes-Benz will soon offer actual vehicles. These obviously include a slew of highly advanced, sophisticated, luxurious full electric vehicles. Mercedes-Benz will also offer fully autonomous or self-driving vehicles in near future in order to stay ahead in the future advanced electric and autonomous global auto market. At the 2017 Frankfurt Auto Show, Mercedes-Benz wowed the audience by showcasing its Project One hypercar, which will churn out a massive 1000 bhp of max power output. The German luxury auto brand even revealed on the sidelines of Frankfurt Auto Show, that it is investing in flying taxis as a part of its strategy for the future auto industry.


    ABOUT THE AUTHOR

    Mahesh is a fan of compact, quirky and underrated vehicles that punch above their weight. Multix, Nano, Strom R3 and Navi are his favorites.

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