Daimler AG CEO Dieter Zetsche received a kudos from the company’s board of directors this week, as the German automaker will be extending Zetche’s contract by an additional three years. Many company insiders suggest that Zetsche will still be with the company even past 2013.
Things aren’t exactly perfect at Daimler. The company has not fared well in the global economic downturn, and as other automakers regain momentum, the company still faces financial struggles. Although Zetsche’s position remains relatively secure, one of the company’s newest board members, Wolfgang Bernhard, is considered a possible successor should the company be unable to weather the existing challenges within the premium car segment.
One of the biggest challenges in the premium segment is creating a compact to compete with BMW’s popular 1 Series, or Audi’s upcoming A1. Both of these models offer luxury, fuel economy, and performance, as well as a relatively low price tag that appeals to consumers emerging from one of the worst recessions in recent history.
Mercedes-Benz currently lacks a competitive product premium compact car segment. With BMW’s sporty offerings, and Audi/VW’s fuel-efficient diesel models, Mercedes will need to develop a vehicle that not only possesses Mercedes’ legendary commitment to luxury, but also offers competitive mileage and that is fun to drive. Although Mercedes is falling behind in the compact segment, Mercedes-Benz Baltimore dealers agree that this segment will getting plenty of attention as a result of Zetche’s extension.
Although Mercedes hasn’t performed strongly in recent months, Nissan dealers Washington DC say the economy has a larger role to play in that performance. All executives are looking for ways to maximize revenues while cutting costs. Component sharing between competitors is one way to do that. While Honda Pittsburgh has weathered the ups and downs of the economy better than retailers of domestic brands, the recession has still influenced big-picture strategy.
Read more about Zetche’s contract extension via the official press release below.
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Press Release:
Supervisory Board of Daimler AG extends contracts of Dr. Dieter Zetsche and Dr. Thomas Weber and appoints Dr. Wolfgang Bernhard to the Board of Management
- Daimler Board of Management again consists of six members - Dr. Bernhard assumes responsibility for Mercedes-Benz Cars Production and Procurement and for the Mercedes-Benz Vans divisionIn its meeting today, the Supervisory Board of Daimler AG extended the contract of Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, until December 31, 2013. The contract of Dr. Thomas Weber, Board of Management Member for Group Research and Mercedes-Benz Cars Development, was also extended until December 31, 2013. Furthermore, the Board of Management will once again consist of six members. Dr. Wolfgang Bernhard has been appointed to the newly created position for Mercedes-Benz Cars Production and Procurement as well as the Mercedes-Benz Vans division with immediate effect, meaning as of February 18, 2010. He is appointed until the end of February 2013.
Dr. Dieter Zetsche has been a member of the Daimler Board of Management since December 16, 1998 and Chairman of the Board of Management since January 1, 2006. He is also Head of the Mercedes-Benz Cars division. Dr. Thomas Weber has been a member of the Daimler Board of Management since January 1, 2003, with responsibility for Group Research and Mercedes-Benz Cars Development since May 1, 2004.
The contracts of Dr. Zetsche and Dr. Weber would have expired in December 2010. In accordance with Section 84, Subsection 1 of the German Stock Corporation Act (AktG), the Supervisory Board makes a decision on reappointment after the beginning of the last year of office. The three-year extension effective as of January 1, 2011, reflects Daimler’s general policy to conclude contracts for a period of three years, in case of both initial appointments and reappointments
Dr. Wolfgang Bernhard has been appointed as an additional member of the Board of Management. Dr. Bernhard, who became Head of Daimler’s Mercedes-Benz Vans division in April 2009, assumes Board of Management responsibility for Mercedes-Benz Cars Production and Procurement as well as for the Mercedes-Benz Vans division. A successor for his current position will be appointed soon.
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