Mercedes-Benz is on its way to a major corporate overhaul. The German luxury automaker recently announced its plans to merge its vehicle sales and financial services arms into a single entity by the end of 2025.

The move aligns with the three pointed-star marque’s goal of streamlining its organizational structure by merging Mercedes-Benz Mobility AG into the parent company, Mercedes-Benz AG, by December 31 this year, subject to regulatory approvals. The luxury automaker is also looking to create a more integrated customer experience and operational efficiency.

The restructuring comes as the company attempts to counter recent market headwinds. The announcement follows a challenging period for the Cars division, which recently reported a 3% quarter-on-quarter and a steeper 12% year-on-year sales decline from the same period last year. While the merger integrates most functions, the company will retain certain essential financial services under the Mercedes-Benz Financial Services unit to ensure strict adherence to regulatory standards.

Furthermore, the overhaul marks a significant leadership transition. Franz Reiner, a veteran who began his career with Daimler-Benz in 1992 and currently serves as Chairman of Mercedes-Benz Mobility, has expressed his intention to step down from the company “at his own request” at the time of the merger.

Harald Wilhelm, Chairman of the Mobility supervisory board, praised Reiner’s “visionary and value-driven leadership” that shaped the financial services division for over three decades. Looking ahead, the automaker has appointed Peter Henn, currently the head of US financial services, to take on the global leadership role for the division effective May 1, 2026.

In the interim, Tolga Oktay will manage the financial services business, reporting directly to Wilhelm.