The birth of the automobile can be traced back to January 29, 1886, when Karl Benz received patent number 37435 for a “vehicle powered by a gas engine.” It’s this car that provided the foundation for what is now the company, Daimler AG.
- Planning to lead us into the future of mobility, Daimler is rethinking its entire corporate strategy under Project Future
- Daimler leaning into car division to produce low-emissions cars
- By 2039, Daimler plans to have every car produced to be carbon neutral
As we head into a sustainable future, Daimler intends to be a leader in the future of mobility. Its goal is to transform its business to act more sustainably across the company: from conserving resources and complying with environmental regulations to data protection and respect for human rights.
Project Future will give Daimler the corporate structure it needs to put this strategic initiative into action. It is the most comprehensive reorganization in the company’s 130-year history. A monumental undertaking, involving not only Daimler’s operations in Germany, but also 800 subsidiaries in more than 60 countries. Daimler has implemented the project in order to act quickly and nimbly to the changing demands of mobility.
Focus On Low-Emission Cars
Although it has a variety of business types under the corporate umbrella, Daimler is making low-emission cars a priority. Cars produce the largest percentage of the planet’s C02 emissions by industry. According to the EPA, in the United States they’re responsible for 29% with electricity at 28% and the manufacturing industry at 28% rounding out the top three.
Dieter Zetsche, Chairman of the Board of Management of Daimler AG and current Head of Mercedes-Benz Cars explained: “The number of vehicles on the roads will continue to rise as a result of global demand,” he said. “Emissions must therefore be reduced all the more urgently. For us, the Paris Climate Agreement is more than a commitment – it is a conviction.”
At the Annual Shareholders’ Meeting of Daimler AG at the Berlin Expo Center, shareholders will vote on a new Group structure with the transformation of the automotive divisions into legally independent entities and Daimler AG as the parent company. Within that restructure, sustainability plays an important role.
Moving Through Phases To Set Up For Success
Throughout its history, Daimler has passed through different phases. Dieter Zetsche, Chairman of the Board, delineated those phases. For a period of time, the company focused on active troubleshooting, then pivoted back to what they did best: creating high quality, practical vehicles that also appealed to people’s emotions. From that position, it went on the offensive with the goal of leading the premium segment by 2020, which they have captured since 2016.
By strengthening the car and commercial vehicle divisions, Daimler intends to transform the automotive industry.
“It is certainly no longer sufficient just to offer fascinating vehicles with future-orientated drivetrains”, said Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG. “It is up to the automotive manufacturers to reinvent mobility solutions in urban environments. The performance of the core business has to be right in order to master all these issues.”
Under an initiative entitled “Ambition 2039”, Mercedes has set the bar high to have every car produced CO2-neutral by 2039, including the entire supply chain that builds them. To incentivize the process, Daimler has adjusted remuneration for the Board of Management, particularly tying bonus to implementation of the new corporate strategy.