The carmaker said that the move would 'enhance the framework for successful expansion of the brand and further development of the product portfolio'.

The new division will be headed up by Dr Annette Winkler, previously head of global business danagement & wholesale Europe, who will have overall responsibility for the brand and will report to Dr Joachim Schmidt, executive vice president sales and marketing, Mercedes-Benz Cars.

Daimler also said that the division would be assigned with relevant functions for development, production and sales although there would still be close cooperation with the Mercedes-Benz Development, Production and Sales Divisions to ensure that relevant synergies are employed.