Daimler is heading in the right direction to spin off its heavy truck enterprise by the tip of the yr, finance chief Harald Wilhelm mentioned.

“We’re proper on schedule with the detailed preparations for this advanced mission and need to checklist Daimler Truck as an impartial firm by the tip of this yr,” Wilhelm instructed Automobilwoche, a sister publication of Automotive Information Europe.

“We’re satisfied of the economic logic and some great benefits of the deliberate realignment of Daimler and the spin-off of Daimler Truck,” he mentioned.

Daimler introduced its plans in February to separate up its luxurious automobiles enterprise and its industrial automobiles division, renaming itself Mercedes-Benz within the course of.

The plan is aimed toward growing Daimler’s investor enchantment as a centered electrical, luxurious automobile enterprise, because the Mercedes challenges Tesla, Porsche, BMW and others.

LBBW analyst Frank Biller instructed Automobilwoche that Daimler Truck may be a part of the German DAX index of blue chip firms subsequent March.

Within the truck market, Daimler faces conventional rivals resembling Sweden’s AB Volvo, Volkswagen’s Traton and Paccar.

Underneath the deliberate spin-off, a big majority stake in Daimler Truck could be distributed to Daimler shareholders.

Reuters contributed to this report