• Dieter Zetsche new President/CEO of Chrysler Group
• Introduction of Chief Operating Officer (COO) at Chrysler Group: Wolfgang Bernhard to be named COO and Deputy Member of the DaimlerChrysler Board of Management
• Eckhard Cordes new Head of Global Commercial Vehicle Business

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Dr. Dieter Zetsche

Photo: DaimlerChrysler

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Due to a significant shift in market conditions in the U.S., the new management team of the Chrysler Group will fundamentally reposition and restructure the business. This program, details of which will be announced in the first quarter of 2001, will focus on measures to improve cost positioning, product line-up and market performance.

Since the announcement of the third quarter results in late October, tough market conditions in the United States have intensified further, characterized by ongoing competitive incentive spending, high dealer inventories and resultant reduction in production levels. As a consequence results at the Chrysler Group will fall below the last forecast and thus also affect the earnings of DaimlerChrysler AG.

The Supervisory Board and the shareholder committee strongly reaffirmed at the meeting today its support for the global strategy of DaimlerChrysler and assured the Management Board of its full backing concerning all necessary measures to achieve that objective. 

Dieter Zetsche to head Chrysler Group

Dr. Dieter Zetsche (46), member of the Board of Management responsible for the Global Commercial Vehicles business will assume the leadership of the Chrysler Group as President and CEO of the Chrysler Group immediately and continue to serve as a member of the Board of Management.

Since commencing his professional career with the company in 1976, Zetsche has held increasingly responsible management positions both domestically and internationally. He has been Head of Development and Design of Mercedes-Benz passenger cars and also world-wide Sales and Marketing for Mercedes-Benz products.

His international assignments have involved terms as Board Member of Mercedes-Benz do Brasil and President of Mercedes-Benz Argentina. As President and CEO of Freightliner, the leading U.S. commercial vehicle producer, he achieved an impressive turn-around. 

Wolfgang Bernhard to become new COO of the Chrysler Group and deputy member of the Board of Management

Dr. Wolfgang Bernhard (40) will take over the newly created position of Chief Operating Officer (COO) of the Chrysler Group. Bernhard, who has been appointed deputy member of the Board of Management of DaimlerChrysler AG, was responsible for the very successful launch and introduction of the new S-Class and recently became Managing Director of Mercedes-AMG.

In addition to his extensive product and development experience, Bernhard is also an acknowledged production expert. As COO he will be responsible for all internal operations and the implementation of initiatives necessary to strengthen and restore the position of the Chrysler Group.

After a thorough examination and in-depth analysis of the current situation, the leadership team of Zetsche and Bernhard, in conjunction with Chrysler's management and the full support of DaimlerChrysler AG will initiate and speed up the necessary measures for the "turn-around." The new appointments will also accelerate the transfer of knowledge and technology within the DaimlerChrysler Group. 

Jim Holden will step down with immediate effect. 

Eckhard Cordes to become new head of Global Commercial Vehicle Business

As the Board of Management member formerly responsible for Corporate Development & IT Management, Eckhard Cordes (49), will immediately take over the responsibilities for the Commercial Vehicle Division from Dieter Zetsche.

Over the last few years Cordes has played a leading role in the restructuring and focusing of the company around its core automotive businesses. He is also one the architects of the DaimlerChrysler merger and the recently announced Asian joint ventures and alliances with Mitsubishi Motors Corporation and Hyundai Motor Company respectively.

Since joining Daimler-Benz in 1976, Cordes has spent several years in the Commercial Vehicle Division including 1986-1989 with Mercedes-Benz do Brasil. His present responsibilities on the Board will be temporarily assumed by Juergen E. Schrempp. 

Schrempp reaffirms U.S. commitment

Schrempp reaffirmed that, "The current reorganization will not be to the detriment of our commitment to the important NAFTA market. We will continue our active and very dynamic investment program in our U.S. and North American facilities."

Schrempp concluded: "With this decision we will be able to drive the integration of our global businesses. We do this with shareholder value first and foremost in our mind and will now be able to realize the potential synergies of our global network even faster. Our responsibility to our investors, to our employees and to our customers demands that we rapidly and proactively develop the outstanding potential inherent in DaimlerChrysler."

(Nov. 17, 2000)