Daimler shareholders overwhelmingly voted to push ahead with a breakup of the German auto giant, with its Daimler Truck AG subsidiary set to be spun off and listed on the Frankfurt Stock Exchange as a separate unit.

The plan was approved by 99.9% of investors at an extraordinary general meeting, said Bernd Pischetsrieder, chairman of Daimler's supervisory board.

"Today is a truly historic day," said Martin Daum, head of Daimler Truck AG ahead of the meeting, which was held online because of coronavirus restrictions.

Meanwhile, the main division of Daimler will change its name to Mercedes-Benz Group, after the company's top-selling luxury vehicle, from February 1, 2022.

'Completely different businesses'

Spinning off the HGV business had been a subject of debate within the German multinational for some time.

Those in favor of the move argued that it would give the subsidiary greater independence, making it more profitable.

"Trucks and cars are two completely different businesses," Daimler CEO Ola Källenius said.

They have different customers, he said. "We will secure existing jobs and create new ones."

Källenius added that, with the industry transitioning away from fossil fuel engines, cars were firmly on the path to a battery-powered future while hydrogen fuel cells could "play an important role" for larger and heavier trucks whose bulk poses problems for electric solutions.

Daimler Truck AG to be listed on DAX

Daimler will float its truck and bus division on the stock market by the end of the year, CFO Harald Wilhelm announced at the meeting.

The company expects the truck and bus division to be listed on Germany's blue-chip DAX index by spring.

Daimler AG will remain in the DAX but will be renamed to Mercedes-Benz Group AG in February, bringing the company more closely into line with its best-recognized global brand.

The company's shareholders will receive one Daimler Truck share for every two Daimler shares held.

Daimler intends to distribute 65% of Daimler Truck shares to its own shareholders, with the Mercedes-Benz Group retaining a 35% stake.

adi/msh (dpa, AFP)