Day 1 of 2005 Frankfurt Auto Show - DamlierChrysler and VW

Frankfurt September 13, 2005; The AIADA newsletter reported that DaimlerChrysler took the spotlight during the opening press day of the big Frankfurt Auto Show Monday, reported USA Today.

The automaker unveiled three products and sent the CEOs of its Chrysler and Mercedes-Benz divisions out to meet the media. Mercedes-Benz CEO, Dieter Zetsche said the Mercedes cars rolling off the assembly lines are the best quality in the company’s history. "Clearly it is our objective to become No. 1 in the J.D. Power survey," Zetsche said. While he would give no timetable, he said,

"We’ll definitely be within the very top ranks within the next three years." Mercedes showed the first new model of S-Class sedan, which will arrive at U.S. dealerships in the spring. Mercedes will also be unveiling the "Direct Hybrid" and the "BLUETEC Hybrid,” two groundbreaking concept cars, later in the week.

Zetsche also said in a separate USA Today article that he plans to direct the Mercedes group indefinitely and cautioned that any reform would take time.

Zetsche, who will also replace Juergen Schrempp as CEO of Daimler Chrysler on January 1, said he would try to emulate his previous success in turning around the Chrysler division by improving the company’s Mercedes unit, which has suffered from declining sales, customer dissatisfaction and quality problems.

The industry will be watching Zetsche closely to see if he can invigorate Mercedes the way he did Chrysler. Zetsche said cost-cutting and job reductions will all be addressed.

Meanwhile, Wolfgang Bernhard, former COO of Chrysler Group, and now CEO of Volkswagen’s VW brand, said his company plans to turn around its U.S. business, which has posted losses amid fierce competition, within three years with the help of between five and 10 completely new models by 2010.