DaimlerChrysler chief-designate Dieter Zetsche reportedly says his priorities in an interim role leading the company’s luxury Mercedes division will be much the same as when he took over struggling Chrysler five years ago – improving lagging quality and profitability.
Go deeper with GlobalData
The Associated Press (AP) noted that DC last month named Zetsche, currently president and chief executive of its Auburn Hills-based Chrysler Group, to lead the entire company when CEO Juergen Schrempp leaves at year’s end.
Zetsche’s move to Germany was expedited last week when the automaker said he would replace Mercedes boss Eckhard Cordes on September 1, the day after Cordes departs the company after 29 years, the report added.
According to the Associated Press, Zetsche, speaking at a gathering of business leaders on Tuesday evening, said his goal at Mercedes will not be so much increasing sales, as making money and producing better quality vehicles.
“It’s clear that we want to return to a level of profitability which is adequate for a premium car manufacturer,” Zetsche reportedly told automotive journalists at the gathering, adding that “profitable growth is the name of the game.”
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.
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 GlobalDataAP noted that Mercedes, once DaimlerChrysler’s star performer, has seen troubled times lately – it has been hampered by quality issues, including a 1.3 million vehicle recall in April, as well as problems at its Smart compact car division, and its operating profit in the most recent quarter was off 98% from last year.
Meanwhile, with Zetsche at the helm, Chrysler has seen sales and profits rise significantly, the news agency noted.
Zetsche reportedly declined to discuss specific plans for Mercedes, such as job cuts to trim costs, primarily because, he said, he’s yet to even arrive on the job in Stuttgart.
According to the Associated Press, Zetsche also wouldn’t entertain how long he might remain at the top of Mercedes, though he noted, “I do not plan on anything short term.”
The Associated Press said Zetsche wouldn’t confirm a German newspaper report on Tuesday that said DaimlerChrysler and rival Volkswagen are in talks about jointly producing a VW-branded minivan for the US market, but he did note DaimlerChrysler already has agreed to use a Volkswagen-built diesel engine in some Dodge vehicles in Europe.
“There are more talks than this engine, and they might lead to results, but we’re not at a point of time where we could confirm or announce anything,” he said, according to the news agency.
The Associated Press said Zetsche leaves a once-struggling Chrysler division that has improved dramatically under his watch – Chrysler reported an operating profit of $US658 million in the second quarter, its eighth consecutive quarterly profit at a time when General Motors and Ford have struggled.
Zetsche will be replaced at Chrysler by current No. 2 Thomas LaSorda. Chrysler executive Eric Ridenour will take LaSorda’s place, the report noted.
