By Marc Bisbal Arias 
 

Daimler AG (DAI.XE) said Monday that it took the initial steps toward forming a new corporate structure, with plans to split its Mercedes-Benz cars-and-vans business and Daimler trucks-and-buses business into separate entities.

The plans, not yet approved, would include investing a three-digit million euro sum, Daimler said. The plans do not include divesting any divisions, it said.

The potential separation of Mercedes-Benz cars and vans and Daimler trucks and buses would allow them, as legally independent entities, to take greater entrepreneurial responsibility, the car maker said. The measure aims "to strengthen the future viability of the business units and better utilize the potential for growth and earnings in the various markets," Daimler said.

A final decision regarding the new structure hasn't been made, Daimler said. Both the management and supervisory boards will reach a final resolution once ongoing assessments and negotiations are completed. Should implementation go forward, the measures would also require the approval of shareholders, who could vote on the motion in 2019 at the earliest, the company said.

Further, Daimler said it plans to contribute 3.0 billion euros ($3.54 billion) from liquid funds to its German pension fund in the fourth quarter, subject to supervisory board approval. Daimler expects the free cash flow of the industrial business, excluding the pension contribution, to be slightly above that of last year.

Write to Marc Bisbal Arias at marc.bisbalarias@dowjones.com

(END) Dow Jones Newswires

October 16, 2017 06:38 ET (10:38 GMT)