Trucking news and briefs for Friday, Feb. 5, 2021:
Daimler announces plan to spin off truck business
Daimler AG announced this week it will split its commercial vehicle business from its luxury car operation later this year, listing the former as a second unit and renaming the latter as Mercedes-Benz.
The move has been pushed by some Daimler AG investors for years, citing a low valuation for the group company.
In a statement, Daimler AG said it is intended that a significant majority stake in Daimler Truck will be distributed to Daimler shareholders. Additionally, the Daimler Truck business will have fully independent management, stand-alone corporate governance including an independent Chairman of the Supervisory Board, and is targeted to qualify as a DAX company.
The company says the listing of Daimler Truck on the Frankfurt stock exchange is expected to be complete before year-end 2021. The company's automotive business will rename itself as Mercedes-Benz at the appropriate time.
"Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs,” said Ola Kallenius, chairman of the board of management, Daimler and Mercedes-Benz. “Mercedes-Benz is the world’s most valuable luxury car brand, offering the most desirable cars to discerning customers. Daimler Truck supplies industry leading transportation solutions and services to customers. Both companies operate in industries that are facing major technological and structural changes. Given this context, we believe they will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure."
Daimler Truck plans to accelerate the execution of its strategic plans, raising its profitability and moving forward with its development of zero-emissions technologies for trucks and buses.
Cummins, Isuzu partnering for global mid-range powertrain, advanced engineering
Cummins and Isuzu on Friday announced agreements for a global mid-range diesel powertrain and an advanced engineering collaboration, an extension of the Isuzu Cummins Powertrain Partnership formed in May 2019 to evaluate, jointly develop and bring new diesel and alternate powertrains to global markets.
Under the mid-range diesel collaboration agreement, Cummins will provide Isuzu B6.7 diesel platforms for use in medium-size trucks. Isuzu chassis powered by the B6.7 diesel platform will be introduced in North America in 2021, and the two companies will work together to meet Japan’s emission regulations and introduce the platform in Asian markets at a later date.
Isuzu and Cummins also entered into an Advanced Technology Agreement, signing to conduct joint research for various powertrain technologies using the companies’ respective advanced engineering capabilities. Both seek to further enhance efficiency and emissions capability of their advanced diesel products.
As part of the path to carbon neutral, Isuzu and Cummins have recently expanded the partnership discussions to include new power sources, including electrical powertrain technologies. Together, the companies believe there may be further opportunities to benefit from each other’s unique strengths by harnessing each other’s products and technology to drive global growth.
Volvo, Mack integrating insurance into financial services
Volvo Financial Services and Mack Financial Services announced each will be working with insurtech company REIN to pilot an integrated digital insurance offering.
The service will allow Volvo Trucks and Mack Trucks customers to connect in real time with insurance companies to access different coverages, make claims and handle their other insurance-related needs online.
The pilot program is currently available in select U.S. markets. Both companies plan to expand the service nationwide with intentions to offer in in select international markets in the future.
More details on the programs will be announced at a later date.