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02-06-2021, 04:57 PM | #1 |
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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. |
02-07-2021, 08:01 AM | #2 | |
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02-07-2021, 08:17 AM | #3 |
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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. |
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