Chrysler Chief Dieter Zetsche Says Toyota Will Never Surpass His Company As No. 3 Automaker

DEARBORN, Mich. ED GARSTEN AP Auto Writer reported that Toyota Motor Corp. may be gaining market share, but the head of the Chrysler Group of DaimlerChrysler AG told an industry group the Japanese automaker will never surpass his company as the number three car company in the world.

``DaimlerChrysler North America leads Toyota by 4 percent of market share, and we will be growing,'' Chrysler Group president and chief executive Dieter Zetsche said Wednesday night.

``I see no scenario whatsoever where Toyota will pass us in share,'' Zetsche said during a question-and-answer session that followed his speech to the Automotive News World Congress.

Zetsche launched his strongest diatribes against the escalating incentive war that was sparked in late September by General Motors Corp. with its ``Keep America Rolling'' program that featured no-interest financing.

``I view the incentive game as kind of a drug,'' Zetsche said in his speech. ``Short-term, it may make you feel good, but it will have long-term negative consequences for the industry. ... on an ongoing basis, it's as if we're sending the message that all of the design work, all of the painstaking research and development and all of the efforts by everyone in the company ... are inconsequential.''

Zetsche said constant incentives have the effect of cheapening the residual value of a vehicle and create ``an aura of disrespect for the product.''

Chrysler will not eliminate incentives, but the focus in its advertising and at dealerships will be more on selling the vehicles' attributes than on making a deal.

Almost a year after Chrysler announced a wide-ranging turnaround plan, Zetsche said, no additional layoffs would be necessary because of continued workforce reductions through early retirements.

Plant costs are being reduced by accelerating productivity improvements and trimming launch costs, especially on the heavy-duty Dodge Ram Trucks.

The automaker hopes to increase its sales volume by 1 million units within 5 to 10 years, Zetsche said.