A top DaimlerChrysler workers representative said on Monday he backed chief executive Juergen Schrempp despite shareholder calls for his resignation after the Mitsubishi Motors debacle.
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“On April 7th, decisions were made in regard to Mr. Schrempp’s contract,” said Erich Klemm, head of DaimlerChrysler’s workers council and deputy chairman of its supervisory board, in a statement to German business daily Handelsblatt cited by Reuters.
“I see no cause for renewed speculation on this,” he reportedly said in the statement, which was confirmed by a spokeswoman for him.
Reuters said Daimler’s decision last week to cut off all financial support to its troubled Japanese partner has been seen as a tacit admission that Schrempp’s strategy of acquiring stakes in carmakers around the world has failed to pay off.
The news agency noted that representatives elected by the employees make up roughly half of the carmaker’s supervisory board, which appoints the members of the management and which recently approved a three-year extension in Schrempp’s contract.
