In a move described by the US press as “befuddling” Daimler has suddenly fired the CEO of its Mercedes-Benz USA operations, Ernst Lieb.
The Detroit Bureau called the move “striking and unexpected” as Lieb was relieved of his duties as CEO effective immediately.
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The Bureau said the move took even well-placed insiders by surprise, triggering a variety of rumours about the well-liked executive’s sudden departure.
Daimler issued only a terse formal statement noting, “Ernst Lieb has been excused from his duties as CEO of Mercedes-Benz USA. Daily business operations of MBUSA will be conducted by Herbert Werner (CFO and Vice President Finance, Controlling & IT) until further notice.”
The fact that Werner will handle Lieb’s duties on an apparently temporary basis underscores the apparent suddenness of the shake-up.
Analysts said that swiftness of the move pointed to something personal as Lieb had overseen some impressive Mercedes gains in North America.
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By GlobalDataMercedes’ US sales are up 10.4% for the year, well ahead of the overall market’s slow revival. It is now the leading luxury brand in the US, overtaking Toyota’s Lexus division.
Lieb, 56, joined Daimler in 1976 as a spare parts specialist and was assigned to North America several times during his career, including a stint as CEO of Mercedes-Benz Canada in 1995. He was serving as head of DaimlerChrysler’s Australian and Pacific Operations in 2003.
He was well-liked by dealers who he persuaded to invest more than US$1bn in recent years to upgrade their showrooms.
Daimler spokesman Han Tjan would not give a reason for Lieb’s departure, adding that he remains with the company in an unspecified role.
One US analyst said that firing Lieb made no sense based on sales figures or marketing performance. “There’s no rhyme or reason from a business perspective,” he added.
Bloomberg noted that nine-month Mercedes deliveries in the US rose 6.5% to 170,058 cars and SUVs while Lexus’s year-to-date sales fell 16% to 135,647 – although its sales were impacted by shortages caused by the earthquake and tsunami in Japan earlier this year.
The US accounted for 17% of Daimler’s 1.28m car sales last year, making it its second largest market after Germany.
