Published: Tuesday, September 13, 2005Mercedes provides challenge to CEODaimlerChrysler's new leader now turns his attention to the moribund brand.Associated PressFRANKFURT, Germany - DaimlerChrysler's next chief executive said Monday thathe would try to emulate his success in turning around the Chrysler divisionby improving the company's Mercedes unit, which has suffered from decliningsales, customer dissatisfaction and quality problems. Dieter Zetsche, who moved to Mercedes from Chrysler earlier this month andwill replace Juergen Schrempp as CEO of DaimlerChrysler on Jan. 1, said heplanned to direct the Mercedes group indefinitely and cautioned that anyreform would take time. "Let us analyze this internally," the 52-year-old German said at theFrankfurt auto show. "I have only been on the job for 12 days." Zetsche is taking control of a division that was once the pride ofDaimlerChrysler AG. Industry watchers, particularly in Europe, are keen tosee if he can invigorate Mercedes the way he did Chrysler, which posted itseighth straight quarterly operating profit in July. Asked if there would be cost-cutting measures or even job cuts at theMercedes business, which includes the struggling Smart compact car unit, hedeclined to be specific. "The whole production process has to be addressed," he said. Analysts and reporters gathered at the International Auto Show also heardfrom Wolfgang Bernhard, the former chief operating officer of Chrysler Groupwho is now CEO of Volkswagen AG's VW brand. Bernhard called Volkswagen'sU.S. unit a "company in crisis." He said Volkswagen planned to turn aroundits U.S. business, which has posted losses amid fierce competition, withinthree years with the help of some new cars. "By 2010, we will bring between five and 10 completely new models ... tomarket," he said Zetsche made a showman-style arrival at his first major industry appearancesince being tapped to take over the German-U.S. automaker, rolling up in thenew Jeep Commander and sporting a leather jacket and a baseball cap. "For me, today is a sort of coming home," he said. Zetsche was named as the next DaimlerChrysler boss after Schremppunexpectedly announced July 28 that he would step down at the end of theyear. The move relieved investors who felt the Schrempp-engineered merger ofDaimler and Chrysler in 1998 had failed to bring the returns promised. That was followed on Aug. 18 by the news that Zetsche would take overMercedes from Eckhard Cordes, who helped Schrempp plan the merger and wasonce considered a leading contender for the top job. "Mercedes Benz is the crown jewel in the company," Zetsche said as heshowcased the Vision R 63 AMG, which the company has dubbed a fresh"interpretation of the new Mercedes-Benz R-Class." Powered by a new AMG 6.3-liter V8 engine, the company hopes the Vision willcause customers to look past the company's recent quality issues and embracethe sleek, six-seater car.
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