Daimler’s CASE Strategy: Partnering with BMW for Mobility Services and Autonomous Driving

Mercedes-Benz will launch its first EV, the EQC, in 2019 and 10 EVs by 2022

2019/04/18

Summary

CASE
CASE trends leading to fundamental changes in the automotive industry (All documents featured in this report are from Daimler, with the exclusion of the BMW iNEXT)

  This report will cover Daimler’s CASE strategy, based primarily on its 2018 financial reports that were released in February 2019.

  As one of the leading automakers in the world, Daimler plans to strengthen its core business and promote its CASE strategy. In order to strengthen its corporate structure, the group will be reorganized as the following three companies under the holding company Daimler AG: Mercedes-Benz AG (passenger vehicles and vans), Daimler Truck AG (trucks and buses), and Daimler Mobility AG (mobility and finance). After receiving approval at the general shareholder’s meeting to be held in May 2019, the group will shift to its new structure in November.

  In March 2018, Daimler announced that it will be entering a comprehensive partnership with BMW for its mobility business, and in February 2019, the OEM provided more details and announced that they will be establishing five joint ventures divided by field. Also in February 2019 (two weeks after the announcement of establishing five joint ventures), Daimler broke the news that it will be partnering with BMW to develop autonomous driving technology. Daimler stated that autonomous driving will be implemented first through its mobility services, in turn helping to increase the demand for mobility solutions. The partners will accelerate development by splitting the massive costs involved in developing autonomous driving technology.

  Regarding electrification, Mercedes-Benz’s EQ brand of EVs will begin production of its first vehicle, the EQC, in 2019, with its release planned for the middle of the year. In November 2018, the brand initiated the European release of its GLC F-Cell FCV featuring plug-in capabilities.

  In recent years, Daimler has been steadily increasing its sales and profits. However, in 2018, its vehicle sales and sales figures increased marginally only by 2.4% and 2.0%, respectively, and its EBIT dropped by 22%, affected by issues related to its diesel engines, transitioning to the WLTP, and global trade disputes. This downturn lead the automaker to consider comprehensive measures to increase its profits.


Related reports:
2021-2030 CO2 regulations in Europe, backlash against diesel, and electrification(May 2018)
OEM Electrification Strategies: Acceleration of EV and PHV Lineup Expansion(April 2018)
Daimler: all-electric vehicles to account for 15-25% of total unit sales by 2025(January 2018)