DaimlerChrysler’s designated chief executive Dieter Zetsche has expressed confidence in the future of loss-making minicar business Smart as he took over personal control of Mercedes Car Group, according to Reuters.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more


“I am extraordinarily optimistic that Mercedes Car Group is on a fast track higher. I am equally optimistic that we will make progress with Smart along the way,” he reportedly wrote in a memo to staff of the automaker’s premium car division.


“We have brands that are the envy of the entire industry, we have products that we can rightly be proud of, and we have in all areas staff whose competence and ability is second to none,” he added, according to Reuters.


The company reportedly released the letter on Friday, a day after Zetsche left Chrysler to run Mercedes for an unspecified period.


He replaces group CEO Juergen Schrempp at the turn of the year as well, the news agency noted.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Reuters said the financial community is watching eagerly to see what steps Zetsche has in mind for Mercedes, whose operating profit has plummeted amid model changeovers, a strong euro, spending to fix quality problems and hefty losses at Smart.


The market wants to know whether Zetsche, 52, will simply tinker with predecessor Eckhard Cordes’s plan to revive Mercedes profits and margins by cutting costs and boosting revenue, or whether he will take a more radical approach, the report added.


Reuters noted that some analysts have suggested pulling the plug on Smart, which has not made a profit since its debut in 1998 and is slated to break even only in 2007 despite sweeping job cuts and a narrowing of the quirky city car’s model line-up.


It lost nearly €4,000 on each car sold last year, the report added.