Off topic but I thought it might be if interest to MB enthusiasts..
FRANKFURT, Germany — DaimlerChrysler CEO Juergen Schrempp, the architect of the 1998 merger that married Daimler-Benz to Chrysler, will leave the company by the end of the year and turn over the reins to Dieter Zetsche, now head of the U.S.-based Chrysler Group, the company said Thursday.
Dieter Zetsche will take over DaimlerChrysler by the end of the year.
Jeff Haynes, AP
Zetsche will be replaced as Chrysler head by current No. 2 Thomas LaSorda at the start of 2006.
"The supervisory board and Prof. Schrempp are in full agreement that the end of the year 2005 is the optimal time for a change in the leadership of the company," Chairman Hilmar Kopper said in a statement.
"He has left voluntarily after a dialogue with the supervisory board," a spokesman added, saying that Schrempp, 60, had proposed Zetsche as his successor.
DaimlerChrysler said Schrempp, whose contract was valid through 2008, would leave at the end of the year and would draw no salary after the end of 2005.
In a letter to employees, Schrempp said that "through our brand and product portfolio and our presence in more than 200 countries, we are uniquely positioned. Profits have risen steadily and we are on the way to reaching the goals set under my chairmanship."
"In view of this positive development, the board of directors of DaimlerChrysler and I agreed that the end of 2005 would be the best time for a change in leadership of the company."
Wieck
One of Chrysler's success under Dieter Zetsche is the 300C.
Schrempp said during a conference call that he is leaving in good spirits.
"All in all I am satisfied with the advances made," he said. "Clearly DaimlerChrysler is not yet where it wants to be, although I am sure it will arrive. We are heading precisely in the right direction."
"On a personal note, I can assure you that I am a very happy man."
The surprise news overshadowed improved second-quarter earnings and a slight rise in sales.
The company that emerged from Schrempp's 1998 attempt to create a global auto giant has struggled, first with heavy losses at the Chrysler division and now with weak earnings at its former cash cow, Mercedes.
Schrempp has been criticized by some investors because the company's stock price has lagged since the merger. Comments he made about the deal in a newspaper interview also led to billionaire investor Kirk Kerkorian suing the company over the terms of the deal, a suit Kerkorian lost earlier this year.
"Schrempp's stepping down should absolutely be seen as positive for DaimlerChrysler," Metzler Bank analyst Juergen Pieper told Reuters. "Schrempp has made too many poor strategic decisions in the past. Zetsche should bring a breath of fresh air."
Investors' frustration with Schrempp was indicated by the nearly 10% rise in the company's shares in Frankfurt trading after the announcement.
Zetsche has earned plaudits for his turnaround of Chrysler, which has bounced back on the strength of hot-selling new models such as the 300C.
Schrempp has been with DaimlerChrysler for 44 years, and held a variety of management positions, including the leadership of Daimler-Benz operations in South Africa, the United States and in Germany, as well as 17 years as chairman of Daimler-Benz Aerospace and DaimlerChrysler.
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Schrempp
He began his career as an apprentice mechanic with Daimler-Benz in 1961 and joined the company's headquarters in Stuttgart in 1967.
Also Thursday, DaimlerChrysler said its second-quarter earnings came to 737 million euros ($884 million), or 73 euro cents a share, compared with 577 million euros, or 57 euro cents a share, a year earlier. Its operating profit fell 20% to 1.67 billion euros.
Sales during the quarter were up slightly to 38.4 billion euros ($46.04 billion) from 37.07 billion euros.
The earnings were helped by a strong performance from the truck and bus unit, which offset narrower profits in its luxury Mercedes Car Group unit.
The Mercedes unit posted a scant operating profit of 12 million euros ($14.39 million) for the quarter, a 98% drop from the same quarter last year. Revenue was 12.4 billion euros ($14.87 billion), down 4%.
The company said the unit sold 308,100 cars, a 4% drop from last year that it blamed on few sales by its compact car business Smart. In April, DaimlerChrysler announced a 1.2 billion euro ($1.44 billion) restructuring of Smart that led to nearly 600 job cuts.
The company's Chrysler Group, however, showed a 4% gain with operating profit rising to 544 million euros ($652.26 million). Sales were down 1% to 13.03 billion euros ($15.62 billion).
The number of Chrysler cars sold rose 4% to 812,200.
Sales by the company's commercial vehicles unit, which includes Portland, Ore.-based Freightliner, helped push up that unit's operating profit 12% to 524 million euros ($628.28 million) on sales of 10.6 billion euros ($12.71 billion).
DaimlerChrysler said the number of trucks, buses and other commercial vehicles sold during the quarter rose 20% to 221,600 from 184,900 the year before.
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Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Ken G
1971 280 SL
Silver/red
