DaimlerChrysler extends CEO contract

No. 5 automaker also appoints a new finance chief and a new head of its Mercedes luxury cars unit.
February 18, 2004: 10:10 AM EST

FRANKFURT (Reuters) - DaimlerChrysler AG said on Wednesday it intended to extend the contract of Chief Executive Juergen Schrempp until 2008 and appointed a new finance chief and a new head of its Mercedes luxury cars unit.

DaimlerChrysler (DCX: Research, Estimates) said in a statement that its supervisory board had voted unanimously in favor of extending Schrempp's contract, which runs until the annual shareholder meeting in 2005, for a further three years.

The changes come as Schrempp, 59, battles to revive the group's struggling Chrysler division and fends off criticism of the 1998 link-up between Daimler-Benz and the U.S. automaker that he dubbed a "marriage made in heaven."

DaimlerChrysler shares, which are worth less than half their all-time high, gained 0.49 percent to 36.8, slightly lagging the Dow Jones European autos index.

The world's fifth largest carmaker said Wolfgang Bernhard, currently chief operating officer of Chrysler, would take over as Mercedes chief on May 1, 2004, replacing Juergen Hubbert who will head the group's executive automotive committee.

Bernhard, who oversaw aggressive cost-cutting at Chrysler as part of efforts to return it to profits, will be replaced by Thomas LaSorda, Chrysler's current manufacturing chief.

DaimlerChrysler also confirmed Bodo Uebber would become chief financial officer on December 16, replacing Manfred Gentz, who is retiring. Uebber was promoted to the executive board last year as the designated successor to Gentz.

The Stuttgart-based group is due to provide details of a 700-million ($892.2 million) drop in year operating profits on Thursday and reveal whether Chrysler met its break-even target last year.

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I don't know if I would call it a path to destruction. MB's quality has gone down the *****ter, no doubt about it. But their sales have been up, up, up over the last few years, especially here in Canada. And in the end, all that really counts is the bottom line. And in that regard he has done a good job.

JMHO.

 

Not that bad...

 

"The world's fifth largest carmaker said Wolfgang Bernhard, currently chief operating officer of Chrysler, would take over as Mercedes chief on May 1, 2004, replacing Juergen Hubbert who will head the group's executive automotive committee"

This, however, is very, very good news for MB. Bernhard is a very inspirational individual who used to head AMG. He is performance oriented, believes in the team concept and getting everyone involved. He also understands the fine balance between cost cutting and quality. I'm excited about the possibilities.

 

I'm not so fond of Wolfgang Bernhard being new Mercedes Car Group CEO.. after all Chrysler has been suffering quite a while.. but since he's been head of AMG.. it might be a good thing

 

Chrysler has been suffering but they are slated to introduce a number of new vehicles, also IMHO what they have already introduced are some of the best Chryslers I have ever seen.

I'm excited about his new post at MB, remember he's the one who introduced the new Chrysler concept high performance sports car. Also, from what I have heard he's big on high quality.

 

hey guys,

i have faith in Schrempp. also i think the Chrysler deal in the long run will have been a very good decision. good things take time.

 

Only a radical shift in MB culture will assure a place again in the JD Powers' rating among the top car manufacturers, --

rather than the recent MB tail end ranking: the 29th place in the quality score department of the world's 35 largest car manufacturers.

:o

 

Schremp (wasn't he the stooge that replaced Curly??? ) was kept on in order to prevent the plantiff K.K. with further evidence the merger/Schremp were not a good idea. He should be made to drive a 1985 K car for the rest of his life with no loaners ever when he goes in for service, and he'd be doing alot of that .

 

More than 22% of Mercedes-Benz owners switched to an Asian brand

http://www.detnews.com/2004/autosins...tos-120247.htm

 

"More than 22% of Mercedes-Benz owners switched to an Asian brand during that time."

That being the case for the first quarter of 2004,-- alarm bells should be ringing in Stuttgart --- rather than saying:

"Wait -- we are introducing 5 new models later this year, and we shall catch up."

Five new models do NOT correct the quality problems. 5 new models increase quality issues FIVE-FOLD!

 

Gekko, don't rub it in.