Our strategy.

Four future-oriented fields are set to radically change the nature of mobility: greater vehicle connectivity, advances in autonomous driving, the development of digital mobility and transport services, and electric mobility. Our goal as one of the leading vehicle manufacturers is to become a leading provider of mobility services. Every strategic action revolves around one thing, the customer. So also for the future, we will only be as successful as our products and services are in the market.

By means of five closely related components we are pushing forward the biggest changes in our company history - our 5C-strategy.

We will be:

• strengthening our global core business (CORE)

• leading in new future fields (CASE)

• adapting our corporate culture (CULTURE), and

• strengthening our divisional structure (COMPANY).

The benchmark for each of these strategic components is our fifth and most important C: our CUSTOMERS .

By these five components we want to achieve profitable growth, increase the value of our company and significantly shape the future of mobility

1. CORE — strengthening our global core business

Our goal is to continue our global growth in all the vehicle segments in which we are represented and in the services segment. We want to thrill our customers with outstanding products and strong brands. The Asia region, and especially China, are playing a central role in our car business in particular.

Through our strong global network we are creating the foundation that will enable us to react flexibly to changing market conditions and customer wishes. We plan to continue expanding our development, service, and production units worldwide.

We are using the earning power generated by our core business to make extensive investments in the big future developments of our sector.

2. CASE — leading in new future-oriented areas

Connected, Autonomous, Shared & Services, Electric — through the connection of all the future-oriented CASE areas, Daimler is transforming itself from an automaker into a provider of mobility services. Daimler is also shaping “intuitive mobility” with comfortable, user-friendly products and services that simplify our customers’ lives and mobility.

For one thing, we are electrifying our cars, trucks, vans, and buses. In the car segment we will introduce at least ten fully electric models by 2022.

Connected vehicles and digital services are already an important purchasing criterion today. With Mercedes mein the car segment, Mercedes PRO in vans, and Mercedes-Benz Uptime in trucks, we offer comprehensive access to brand worlds and extensive services. And with our new MBUX infotainment system we’ve taken the theme of connectivity to the next level. Thanks to artificial intelligence, MBUX is capable of learning.

We have moved a big step forward on the road to autonomous driving through our updated Mercedes-Benz S-Class model. In the truck segment as well, automated and autonomous driving promises to improve the safety and efficiency of transportation. Platooning concepts are becoming increasingly important as an intermediate step for trucks.

Our mobility services such as car2go, moovel, and mytaxi are already being used today by approximately 26 million people all over the world. In particular, the combination of autonomous driving and shared mobility will become increasingly important in the future. We are planning to put the first self-driving taxis on the road in the early 2020s.

3. CULTURE — adapting our corporate culture

At the cultural level, we are responding to the transformation of the auto industry by adapting our corporate culture to the new challenges. The increasing dynamism and the challenges of the automotive sector require a fast pace of innovation and agile action that is aligned with markets and customers. In cooperation with our employees, we have developed a new leadership culture under the overarching Leadership 2020 program. We are reinforcing the entrepreneurial spirit, becoming faster, and creating more space for innovation. We are promoting new development methods and new models of interdisciplinary cooperation in a targeted way. We are supporting the promising innovations of our employees and external partners and ensuring that they are implemented. We’re developing additional business ideas through innovation platforms such as STARTUP AUTOBAHN and Lab1886. With DigitalLife@Daimler we are pushing ahead the digital change on a superordinate level, allowing to experience technologies and promoting connected collaboration between the employees.

4. COMPANY — reinforcing the divisional structure

In order to react appropriately to the dynamism of the business environment, the markets, and the new competitors and technologies, we need an organization that enables fast and agile operation. Through our fourth strategic pillar, “Project Future,” we are working to transform our divisions into legally independent units so that we can continue to focus and strengthen Daimler’s divisional structure. That’s because we want our internal mindset and our external structure to complement each other. It’s easier to be quick, flexible, and close to the market if the structures around you support this approach.

Three legally independent entities are to be created under the umbrella of Daimler AG. Mercedes-Benz AG will consolidate cars and vans, while the truck, bus and coach divisions will be combined in Daimler Truck AG. The already legally autonomous Daimler Financial Services AG will be renamed to Daimler Mobility AG in the future and still offer a wide range of mobility services. As the Board of Management and Supervisory Board of Daimler AG already gave their implementation approval in July 2018, only the final consent of the Annual General Meeting is now required. A vote on the restructuring is envisaged for the Daimler AG Annual General Meeting in 2019.

Through our strategic components CORE, CASE, CULTURE, COMPANY and CUSTOMER we want to successfully transform our company from a leading automaker to a leading provider of mobility.

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