In an apparently spectacular fall from grace, Chrysler’s executive vice president-global sales, marketing and service, Joe Eberhardt, will be leaving the company in order to return to automotive retailing within the Mercedes-Benz network in the United States, according to an official statement from group president and chief executive officer Tom LaSorda.
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Industry pundits said Eberhardt had recently become unpopular with dealers after he urged them to buy more cars than they could afford from Chrysler’s truck and SUV-bloated inventory.
One report have suggested that the Mercedes dealer post is a ‘holding’ job for Eberhardt while another role is found for him in DaimlerChrysler while another said that Chrysler confirmed he left of his own accord.
La Sorda’s official statement added: “Joe brought a much-needed discipline to our sales, marketing and service organisations when he arrived in the summer of 2003. Being back in the retail world is something he has talked about for some time now, and having a proven track record in that arena, makes it a natural.”
Eberhardt joined Mercedes-Benz in Germany in 1982 as a student in a work-study programme. In the early 1990s, he left to become general manager of Mercedes-Benz Manhattan, turning it into one of the most successful dealerships in the country.
He returned to Mercedes-Benz in 1995 and, in 1999, was named president and CEO of DaimlerChrysler UK where he more than doubled sales and improved dealer profitability in a stagnant market.
“Joe’s deep understanding of the automotive industry and his proven leadership will continue to serve the company well as he moves back to the retail side,” said Dieter Zetsche, chairman of DaimlerChrysler and head of Mercedes Car Group in the statement.
Reports last night in the US noted that Chrysler is struggling to keep dealers happy as it tries to sell off a glut of inventory that accumulated this year as sales slowed and consumer tastes changed due to high petrol prices.
Dealers reportedly have been concerned over Eberhardt’s management of Chrysler’s retail network and have complained that he forced them to order more vehicles than they need as part of the company’s efforts to lower its bloated inventory.
Chrysler was also reported to be upping incentives on 2006 and 2007 models to boost sales and lower inventory.
