|
 |
| Daimler Chrysler CEO Juergen Schrempp pauses prior to the
beginning of the annual meeting in a Berlin file photo from April
6, 2005. |
Daimler Chrysler chief executive Juergen Schrempp is to step down two
years early.
The German-American car firm, currently battling to attract customers
and boost sales, announced that Mr Schrempp would leave at the end of
2005.
Investors had questioned his plan to expand globally at a time of
fierce competition and waning consumer demand.
The group's shares leapt almost 9% by the close of trading in
Frankfurt.
Mr Schrempp has been under pressure as earnings
have suffered and the prestige
of the Mercedes brand was tarnished by build and reliability
problems.
He will be replaced by Dieter Zetsche, head of the firm's Chrysler
division.
Mr Schrempp was seen as the architect of DaimlerChrysler's global
ambitions.
As a result, he came under fire when Daimler's merger with US firm
Chrysler was not an immediate success and when the carmaker had to pull
out of an expensive partnership with unprofitable Japanese rival
Mitsubishi Motors.
His replacement Mr Zetsche is credited with turning around the
struggling Chrysler business in the US. Mr Zetsche will be replaced at
Chrysler by Thomas LaSorda.
The personnel changes overshadowed DaimlerChrysler's earnings report on
Thursday, which bettered analysts' forecasts.
Operating profit in the second quarter fell a less-than-expected 20% to
1.67bn euros (￡1.18bn; $2.05bn).
Net profit jumped by 28% to 737m euros, and sales rose a touch to
38.4bn.
Helping to lift earnings was a surprise 12m euro operating profit at
flagship brand Mercedes and a 4% increase in operating profit at Chrysler.
Growth was also boosted by the company's truck and van business, which
had another strong quarter thanks in part to North American demand.
DaimlerChrysler is in the process of cutting costs and improving
efficiency, and is restructuring its loss-making Smart mini-car business.
(BBC) | 
Updated: 2005-07-29 11:36
