Daimler AG to Rebrand as Mercedes-Benz Group AG on February 1
Daimler AG will be formally renamed Mercedes-Benz Group AG on 1st February 2022- nearly a year after the spin-off of its truck and bus division was announced– in a move its boss hopes will unlock shareholder value for the premium carmaker.
The change is the latest in a string of structural reshuffles for the carmaker that began its life as Daimler-Benz AG in 1926. The Mercedes brand, named after the daughter of an automobile entrepreneur, was officially adopted by Daimler AG in 1902.
“We have a real chance to raise the multiple,” CEO Ola Kaellenius told reporters without naming a specific target valuation for the firm now worth just under 77 billion euros ($85.70 billion).
However according to analysts, a premium-car maker battling over the luxury market, which is by definition small and finite, could only grow so much. “Investors could start viewing Mercedes as a Lucid Motors or Tesla type and start to give it an EV (electric vehicle) multiple,” said Tom Naraya, an European auto analyst at RBC Capital Markets. “But Lucid and Tesla get to start at 100% EV. For Mercedes, you have to convert your existing internal combustion engine business to EVs. That may be a limitation on how far the multiple could go near-term,” he explained.