At the Annual General Meeting on 22 May 2019 in Berlin, a large majority of the shareholders of Daimler AG approved the reorganization of the Daimler Group. This will clear the way for Daimler to transfer its Cars and Vans business as well as its Trucks and Buses business into legally independent entities.
The new Group structure (PROJECT FUTURE) will take effect when the hive-down is entered in the commercial register at Stuttgart District Court. Daimler then aims to launch the new corporate structure on 1 November 2019. From this time forward, Mercedes-Benz AG will be responsible for the current Mercedes-Benz Cars and Mercedes-Benz Vans divisions, while the Daimler Trucks and Daimler Buses divisions will be joined in Daimler Truck AG. Daimler Financial Services AG, which is already legally independent, will be named Daimler Mobility AG beginning 24 July 2019. The two new companies, like the current Daimler AG and the future Daimler Mobility AG, will be co-determined German stock corporations with their headquarters in Stuttgart.
Today, the shareholders of Daimler AG have approved our plans for a new, modern Group structure. This was the decisive step for us to start with our new structure in November. Daimler has the ambition to be a leader in the new era of mobility. This demands the highest degree of innovation and agility in order to react quickly to changes. The new structure will enhance our ability to act in a dynamically growing competitive environment, including in terms of raising capital. It will also enable us to better respond to customer and market needs. With this new structure, we want to offer our employees a long-term perspective. We are in agreement with the employee representatives on this. With today’s decision and the reorganization of the Daimler Group, we are setting the course for our company and its workforce to be successful also in the future era of mobility.
As the publicly listed parent company, Daimler AG will perform governance, strategy and management functions as well as provide Group-wide services. With three powerful companies under a common umbrella, the Group is giving itself a more flexible and focused structure. With this new set-up, Daimler intends to give its divisions greater entrepreneurial freedom, strengthen their market and customer orientation, and allow them to enter new partnerships more easily and quickly. By focusing the new companies on their customers, markets and core competencies, new growth and earnings potential can be tapped. In addition, strengthening Daimler's divisional structure serves the goal of securing the long-term commitment of current and future investors and partners.
The new structure is a clear forward strategy that will make us stronger and protect long-term employment. For us as the General Works Council, this was the top priority for all decisions on Project Future right from the start. The agreement we have negotiated in connection with Project Future puts security for our employees first and foremost: This agreement rules out redundancies for Daimler AG employees until 2030. A commitment ensures an appropriate task for every employee in times of change. In addition, the German plants will benefit from an investment commitment of €35 billion. We will continue to take care of the interests of our employees in the future with a groupwide works council. The new entities will be co-determined with equal representation in their supervisory boards. The mobility of the future will be exciting and offers many new opportunities. We at Daimler will take advantage of them.
PROJECT FUTURE is the most comprehensive reorganization in Daimler’s more than 130-year corporate history and, in addition to the business operations in Germany, will involve approximately 800 subsidiaries in more than 60 countries. In terms of revenue and total number of employees at Daimler AG, it is also the largest reorganization that has taken place at a German company in recent years. About 130,000 employees of Daimler AG in Germany will undergo a transfer to the two new companies within the context of a legally regulated transfer of operations, and have been informed about this at an early stage and comprehensively.