The company’s new name emphasizes its focus on the future, EVs as well as software.
Nearly one year ago, Daimler announced it would change its name to Mercedes-Benz. Although it didn’t say when, we know now that the name change will occur on February 1st thanks to a Bloomberg report. As the auto industry evolves, so does the name. After the company split off its truck division, the name change to Mercedes-Benz is intended to highlight the company’s future focus – zero-emission cars and lots of software. Mercedes decided to separate the governance of passenger and commercial vehicles because there was so much change.
Mercedes hopes that the company’s move will result in a higher valuation because it is focusing on digital technology. As they look to build electric vehicles, it’s no secret that many traditional automakers are also looking at Tesla. Daimler CEO Olakallenius told reporters today that there is a “real chance to raise the multiple” and that it has seen its value rise to $74 billion (or $82.5 billion today at current exchange rates). This coincides with the company’s aggressive launch for new electric cars. He said that if we can increase cash flow and our multiple, there is a lot of potential for the Mercedes-Benz stock.
The EQS, Mercedes’ flagship EV, was its biggest launch last year. As the company targets Tesla and other luxury electric vehicle competitors, it’s packed with technology and large screens. Because the future is not just about EVs, automakers must adapt to this changing environment. Automakers will likely see new digital services in the future, regardless of their form. There are also autonomous vehicles that need to be figured out. The new name should help with that.