Daimler selling truck division

chassis · 02-06-2021, 04:57 PM

https://www.reuters.com/article/us-d...-idUSKBN2A60QT

Seems like Daimler can’t generate enough cash with its car division to fund EV development so they need to sell whatever isn’t nailed down to raise funds.

SteveinArizona · 02-07-2021, 08:01 AM

Quote:

Originally Posted by chassis

https://www.reuters.com/article/us-d...-idUSKBN2A60QT

Seems like Daimler can’t generate enough cash with its car division to fund EV development so they need to sell whatever isn’t nailed down to raise funds.

The article says they are spinning it off, not selling it. A big difference. In a sin off there will be no cash received. Daimler is merely creating two companies from one on the theory that they will do better that way in the investor community.

chassis · 02-07-2021, 08:17 AM

Yes, selling the equity to the stock market. Old Daimler will receive dividends on their equity investment in the newly spun truck business. Daimler will receive cash payments (dividends) on equity they are presently not monetizing. They could have raised cash by either issuing debt (bonds) or new equity shares.

The commercial truck industry is very strong now, and should continue this way for a couple of years. This means the time is right to sell (spin off) a profitable and growing asset.

To me this doesn't reflect well on Daimler. They are selling a great business to fund a not great business. The Daimler truck business has well respected and successful brands:

Mercedes-Benz Trucks including Sprinter
Freightliner
Western Star
FUSO
BharatBenz
Thomas Built Buses

The Mercedes automotive brand is tarnishing in front of everyone's eyes with widespread quality problems, cheap low end model introductions, low grade dealer network and lack of corporate support for customers. Spend some time reading mbworld.

02-06-2021, 04:57 PM	#1
chassis Colonel 6691 Rep 2,345 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	Daimler selling truck division https://www.reuters.com/article/us-d...-idUSKBN2A60QT Seems like Daimler can’t generate enough cash with its car division to fund EV development so they need to sell whatever isn’t nailed down to raise funds.
	Appreciate 0 Tweet Quote

02-07-2021, 08:17 AM	#3
chassis Colonel 6691 Rep 2,345 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	Yes, selling the equity to the stock market. Old Daimler will receive dividends on their equity investment in the newly spun truck business. Daimler will receive cash payments (dividends) on equity they are presently not monetizing. They could have raised cash by either issuing debt (bonds) or new equity shares. The commercial truck industry is very strong now, and should continue this way for a couple of years. This means the time is right to sell (spin off) a profitable and growing asset. To me this doesn't reflect well on Daimler. They are selling a great business to fund a not great business. The Daimler truck business has well respected and successful brands: Mercedes-Benz Trucks including Sprinter Freightliner Western Star FUSO BharatBenz Thomas Built Buses The Mercedes automotive brand is tarnishing in front of everyone's eyes with widespread quality problems, cheap low end model introductions, low grade dealer network and lack of corporate support for customers. Spend some time reading mbworld.
	Appreciate 0 Quote