Daimler Sheds Chrysler Brand, Renames N. American Division
By Transport Topics Staff
Daimler AG marked the end of its nine-year marriage to Chrysler, dropping the U.S. automaker from its corporate name and renaming Freightliner LLC, its U.S. truck-building subsidiary, Daimler Trucks North America LLC.
The German truck and automobile manufacturer, in a move that continues its push toward a global truck-manufacturing model, also said it would rebrand many components of its global subsidiaries as Daimler.
The company said it will continue using the names of its U.S. truck brands, Freightliner, Western Star and Sterling, although it has been de-emphasizing its Portland, Ore., base by moving Freightliner truck manufacturing elsewhere — especially as news reports indicate that it also may move white-collar jobs to the East Coast.
“Our business has changed dramatically in the past decade, and our name should reflect that reality,” Chris Patterson, Freightliner LLC’s chief executive officer, said in a statement.
“The transition occurring in our parent company presented us with the opportunity to stop and examine our own organization and position in the industry. The time is right to implement a name change that reflects both our global DNA and our broad responsibilities within the NAFTA region,” Patterson said.
Daimler said Patterson would retain his position as chief executive officer of the North American unit; he reports to Andreas Renschler, head of Daimler’s global truck business.
“We are confident and comfortable that our employees, dealers, customers and suppliers will see this as a non-issue in their day-to-day operations,” Patterson said. “Our strength has always resided in the products we produce under our various nameplates and the services we provide,” he added. “That won’t change at all.”
Daimler also said that it will not change the names or operations of the brands that it manufactures or distributes in North America — Freightliner Trucks; Western Star Trucks; Sterling Trucks; Detroit Diesel Corp.; Freightliner Custom Chassis; Mercedes-Benz engines and transmissions and Thomas Built Buses.
Daimler’s North American truck-making presence dates from 1981, when Daimler-Benz Corp., maker of Mercedes-Benz automobiles and trucks, bought Freightliner Trucks. In 1997, it bought Ford Motor Co.’s heavy-trucks unit and renamed the product Sterling, and in 2000, it bought engine manufacturer Detroit Diesel Corp and truck maker Western Star.
“Trademark identification on existing parts will not be changed,” a Freightliner spokeswoman told TT. “In the future, parts or components shared by two or more of our global brands — Mercedes-Benz, Setra, Fuso, Orion, Freightliner, Sterling, Western Star, Detroit Diesel, Thomas Built — will have ‘Daimler’ as a common trademark that will identify the part as genuine and suitable for use as a replacement on any of our vehicles.”
With the globalization of commerce triggered by lowered trade barriers over the past 30 years and the gradual confluence of safety and emission standards worldwide, truck and engine manufacturers have sought to move to common platforms to take advantage of the economies of scale.
In 2003, Daimler said it would build a single global engine platform that could be customized to meet specific markets, and Detroit Diesel, its North American engine, is expected to introduce that engine soon.
Daimler AG shareholders met Oct. 4 at corporate headquarters in Stuttgart, Germany, to adopt the new name and logo. The North American name change will be effective Jan. 7.
“We will use the same logo worldwide, in Europe, Asia, Latin America and for the renamed North American subsidiary,” Sebastian Zitzler, Daimler spokesman in Stuttgart, told Transport Topics.
The shareholders’ vote terminates Daimler’s relationship with Chrysler, which it bought for $36 billion in 1998. Chrysler was then the third-largest U.S. carmaker (5-11-98, p. 6).
Daimler and Chrysler never made the partnership profitable. Chrysler said it lost $1.5 billion in 2006 and expected similar losses this year.
In May 2007, Daimler Chairman Dieter Zetsche announced the company paid $500 million to hand over Chrysler to private equity firm Cerberus Capital Management (5-21, p. 5). Cerberus assumed an estimated $19 billion in Chrysler health and pension liabilities. Daimler retains a 19.9% stake in Chrysler.
Both Daimler AG and its American subsidiary issued releases saying that the management structure and personnel of all Daimler entities will remain unchanged and that dealer operations and supplier relationships would be unaffected. Gradually, the same parts made by at least two subsidiaries all will be renamed “Daimler.”
Daimler AG marked the end of its nine-year marriage to Chrysler, dropping the U.S. automaker from its corporate name and renaming Freightliner LLC, its U.S. truck-building subsidiary, Daimler Trucks North America LLC.
The German truck and automobile manufacturer, in a move that continues its push toward a global truck-manufacturing model, also said it would rebrand many components of its global subsidiaries as Daimler.
The company said it will continue using the names of its U.S. truck brands, Freightliner, Western Star and Sterling, although it has been de-emphasizing its Portland, Ore., base by moving Freightliner truck manufacturing elsewhere — especially as news reports indicate that it also may move white-collar jobs to the East Coast.
“Our business has changed dramatically in the past decade, and our name should reflect that reality,” Chris Patterson, Freightliner LLC’s chief executive officer, said in a statement.
“The transition occurring in our parent company presented us with the opportunity to stop and examine our own organization and position in the industry. The time is right to implement a name change that reflects both our global DNA and our broad responsibilities within the NAFTA region,” Patterson said.
Daimler said Patterson would retain his position as chief executive officer of the North American unit; he reports to Andreas Renschler, head of Daimler’s global truck business.
“We are confident and comfortable that our employees, dealers, customers and suppliers will see this as a non-issue in their day-to-day operations,” Patterson said. “Our strength has always resided in the products we produce under our various nameplates and the services we provide,” he added. “That won’t change at all.”
Daimler also said that it will not change the names or operations of the brands that it manufactures or distributes in North America — Freightliner Trucks; Western Star Trucks; Sterling Trucks; Detroit Diesel Corp.; Freightliner Custom Chassis; Mercedes-Benz engines and transmissions and Thomas Built Buses.
Daimler’s North American truck-making presence dates from 1981, when Daimler-Benz Corp., maker of Mercedes-Benz automobiles and trucks, bought Freightliner Trucks. In 1997, it bought Ford Motor Co.’s heavy-trucks unit and renamed the product Sterling, and in 2000, it bought engine manufacturer Detroit Diesel Corp and truck maker Western Star.
“Trademark identification on existing parts will not be changed,” a Freightliner spokeswoman told TT. “In the future, parts or components shared by two or more of our global brands — Mercedes-Benz, Setra, Fuso, Orion, Freightliner, Sterling, Western Star, Detroit Diesel, Thomas Built — will have ‘Daimler’ as a common trademark that will identify the part as genuine and suitable for use as a replacement on any of our vehicles.”
With the globalization of commerce triggered by lowered trade barriers over the past 30 years and the gradual confluence of safety and emission standards worldwide, truck and engine manufacturers have sought to move to common platforms to take advantage of the economies of scale.
In 2003, Daimler said it would build a single global engine platform that could be customized to meet specific markets, and Detroit Diesel, its North American engine, is expected to introduce that engine soon.
Daimler AG shareholders met Oct. 4 at corporate headquarters in Stuttgart, Germany, to adopt the new name and logo. The North American name change will be effective Jan. 7.
“We will use the same logo worldwide, in Europe, Asia, Latin America and for the renamed North American subsidiary,” Sebastian Zitzler, Daimler spokesman in Stuttgart, told Transport Topics.
The shareholders’ vote terminates Daimler’s relationship with Chrysler, which it bought for $36 billion in 1998. Chrysler was then the third-largest U.S. carmaker (5-11-98, p. 6).
Daimler and Chrysler never made the partnership profitable. Chrysler said it lost $1.5 billion in 2006 and expected similar losses this year.
In May 2007, Daimler Chairman Dieter Zetsche announced the company paid $500 million to hand over Chrysler to private equity firm Cerberus Capital Management (5-21, p. 5). Cerberus assumed an estimated $19 billion in Chrysler health and pension liabilities. Daimler retains a 19.9% stake in Chrysler.
Both Daimler AG and its American subsidiary issued releases saying that the management structure and personnel of all Daimler entities will remain unchanged and that dealer operations and supplier relationships would be unaffected. Gradually, the same parts made by at least two subsidiaries all will be renamed “Daimler.”
