Daimler’s $49B issue: Settling Mercedes brand rights – Automotive News Europe

Daimler long argued it needed to keep the Mercedes brand under one roof when investors pressured the company to separate the trucks business. The growing technological divide between the car and commercial-vehicle industries forced management to rethink this. They plan to address the trademark rights issue before distributing a majority of the Daimler Truck unit to shareholders later this year.

The brand’s cachet could help stoke investor interest in the two manufacturers, which likely will both feature in Germany’s DAX Index, according to Kallenius.

Keeping tabs on brands and trademarks can be a convoluted exercise. Daimler had to pay $20 million to Ford in 2007 to buy back the rights to its name when it shed DaimlerChrysler following the sale of Chrysler. The name had been used for some Jaguar models, a brand Ford owned at the time.

That issue stemmed from Gottlieb Daimler licensing his engine to an entity in the 19th century named Daimler Motor Company, which was later bought by the British luxury brand.

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