China and Europe Will See Massive BEV Growth The Level 3 certification is just the first step of Mercedes-Benz to challenge other manufacturers and software companies for leadership in the automotive sector and self-driving cars. According to Mercedes-Benz, “DRIVE PILOT enables customers to drive in conditionally automated mode at speeds of up to 60 km/h in heavy traffic or congested situations on suitable stretches of motorway in Germany, allowing them to take their mind off the traffic and focus on secondary activities.” Being the first car manufacturer to be granted a Level 3 approval in autonomous driving shows Mercedes-Benz’s commitment and potential when it comes to self-driving cars. The company will be able to deliver its S-Class model with DRIVE PILOT, its autonomous driving system, in the first half of 2022. The German Federal Motor Transport Authority granted the approval to Mercedes-Benz in early December. However, Mercedes-Benz is the first automotive company in the world to achieve international system approval of a SEA Level 3 system. Especially Tesla's autopilot is widely known and gets regular coverage, both positive and negative, in media outlets. If you’d ask someone about self-driving cars, I expect that most people associate either Google ( GOOGL) or Tesla ( TSLA) with the future of autonomous vehicles. First Manufacturer to Achieve Level 3 in Autonomous Driving The separation of the two business segments, allows Mercedes-Benz to focus on its higher-margin passenger vehicles and light commercial vans segments as well as Daimler Mobility, which includes financial services and other mobility services like ridesharing. The truck and bus division had little overlap with the passenger car business when it came to development, marketing, and sales channels. Next, Daimler AG will rename itself to "Mercedes-Benz Group AG" in February, while continuing to hold a 35 percent share of Daimler Truck Holding AG going forward. Daimler shareholders received one Daimler Truck Holding share for every two Daimler shares held. In order to focus on its high-end car segment including key brand Mercedes Benz, Daimler decided to separate the truck and bus division of the company via spin-off into a publicly listed company named Daimler Truck Holding AG ( OTCPK:DTRUY). Daimler's management also reached this conclusion, proposing a significant change for the company. Besides their shared engine technology, there is little to no synergies for manufacturers when it comes to developing, marketing or selling their models to potential buyers. Most of today's passenger cars, trucks and buses have one common similarity, they are likely being powered by an internal combustion engine (ICE). Executing Against the New Strategyĭaimler AG - Investor Relations Daimler T ruck Spin-off Investors can find value in attractively priced Daimler, while collecting an appealing dividend along the way. As a result, Daimler’s long-term outlook is positive due to opportunities in the high-end car segment and structural changes in the automotive sector towards electronic mobility only. Since then, the German car manufacturer lost no time to execute on its promise by restructuring the company, achieving a milestone in autonomous driving, and readdressing key markets of battery electric vehicles (BEV). In October, Daimler AG ( DDAIF) revealed its new strategic course to pursue profitable growth in the luxury car segment, while targeting industry leadership in electric drive and car software development. Metamorworks/iStock via Getty Images Investment Thesis Active contributors also get free access to SA Premium. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Editor's note: Seeking Alpha is proud to welcome Never Invest Alone as a new contributor.
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