Zetsche: Mercedes Needs “Structural, Long Term Changes”

Washington DC September 27, 2005; The AIADA newsletter reported that new Mercedes chief Dieter Zetsche told the Detroit Free Press on Monday that the luxury division of DaimlerChrysler needs “structural, long-term changes” and he will start the process of turning the company around before the end of the year.

Zetsche was the mastermind behind revamping Chrysler in 2001 by cutting 40,000 jobs and calling for massive plant closings. He said Mercedes is not in as dire a situation but there are serious concerns, nonetheless. "The productivity issue is a major issue, and we have to address it," he said, noting that a plan could be announced as soon as the first quarter of next year.

In a Q & A session with the Free Press, Zetsche also talked about DaimlerChrysler and the possibilities for more joint projects, such as the reported joint venture DCX has with VW to produce engines and minivans. “Generally, in the industry, this is an increasingly common practice,” he said. “If the opportunities for both sides, or such case even for three partners, to benefit, we go for it -- as simple as that."

Zetsche took over Mercedes on September 1, and will become Chairman of DaimlerChrysler AG on January 1.