Siemens Mobility becomes legally separate business
SIEMENS: The Siemens Mobility division became a legally separate entity 100% owned by Siemens AG on August 1. The change forms part of a wider restructuring of the Siemens group under its Vision 2020+ corporate strategy which aims to give individual businesses more entrepreneurial freedom.
Ahead of its planned merger with Alstom which is currently going through the regulatory approval process, Siemens Mobility will become one of three ‘Strategic Companies’ under the new group structure, alongside the Siemens Healthineers and Siemens Gamesa businesses in which Siemens holds a majority stake.
Siemens’ current corporate divisions are to be replaced. The Building Technologies, Energy Management, Power & Gas, Digital Factory and large parts of the Process Industries & Drives divisions will be combined to form three ‘Operating Companies’ covering Gas & Power, Smart Infrastructure and Digital Industries. The CEOs of the Operating Companies will continue to be members of the Siemens AG management board.
The Financial Services Division will be bundled with Global Business Services and Real Estate Services to form Service Companies, and Corporate Technology and the group’s SMEs will be centrally managed by Corporate Development. The corporate headquarters will become ‘considerably leaner’, focusing on Finance, Governance & Markets, Legal and Compliance, Human Resources and Communications with other tasks transferred to other units.
The new structure will go into effect on October 1, with implementation expected to be completed by March 31 2019.
Siemens also plans investments in growth markets such as IoT integration, distributed energy management and infrastructure for electric mobility.
‘The speed and power of global changes are increasing, and it’s our obligation to anticipate them’, said Siemens AG President & CEO Joe Kaeser on August 2. ‘It won't be the biggest companies that survive, but the most adaptable.’