Automakers are splitting themselves to better compete with Silicon Valley

Daimler’s views after its split with Mercedes are it says it hopes to give each one more “entrepreneurial freedom,” stronger “market and customer focus,” and the ability to strike up “faster and more flexible partnerships”

Daimler AG will carve itself into three separate units in its biggest overhaul in a decade as the Mercedes-Benz car and truck maker seeks to adapt to the unprecedented shift to self-driving and electric vehicles.

The need for change was evident in the German manufacturer’s second-quarter figures that showed another slump in earnings following on from the first three months of the year. Daimler warned that trade barriers, new European emissions tests, and pricing pressure will weigh in the coming months.

Daimler, also the world’s biggest commercial vehicles maker, remains under scrutiny over its practices on diesel emission for passenger cars in Europe. Germany’s government ordered the carmaker to recall 774,000 vehicles in Europe over the alleged use of illegal defeat devices to circumvent emissions regulation.

Daimler quickly recovered, and there is a reason to believe these decisions really could help these automakers in the long run, according to ARK Invest analyst Tasha Keeney.

Daimler quickly recovered, and there is a reason to believe these decisions really could help these automakers in the long run, according to ARK Invest analyst Tasha Keeney.