Daimler set to spin off truck unit by year end

BERLIN (Reuters) – German carmaker Daimler (OTC:) is on track to spin off Daimler Truck, the world’s largest truck and bus maker, by the end of the year, its finance chief was quoted as saying on Sunday.

“We are right on schedule with the detailed preparations for this complex project and want to float Daimler Truck on the stock exchange as an independent company by the end of this year,” CFO Harald Wilhelm told the Automobilwoche weekly.

“We are convinced of the industrial logic and benefits of the planned realignment of Daimler and the spin-off of Daimler Truck.”

The plan – announced in February – is aimed at increasing Daimler’s investor appeal as a focused electric, luxury car business, as the Mercedes-Benz brand challenges Tesla (NASDAQ:) Inc, Porsche, BMW and others.

LBBW analyst Frank Biller told the magazine Daimler Truck could join the German of blue chip companies next March.

In the truck market, Daimler faces traditional rivals such as Sweden’s AB Volvo, Volkswagen AG (OTC:) unit Traton and Paccar (NASDAQ:) Inc

Under the planned spin-off, a significant majority stake in Daimler Truck would be distributed to Daimler shareholders.

Daimler could not immediately be reached for comment outside normal business hours.