Internal momorendum of Diamler Chrysler. CEO will be resigning in December 31st of 05
07-28-05, 07:29 PM
#1
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Internal momorendum of Diamler Chrysler. CEO will be resigning in December 31st of 05
Stuttgart, 28. Juli 2005
Liebe Mitarbeiterinnen,
Liebe Mitarbeiter,
ich möchte mich persönlich an Sie wenden, weil es mir ein Anliegen ist, Sie so schnell wie möglich über die heutige Entscheidung zu informieren:
Nach über 44jähriger Firmenzugehörigkeit werde ich zum 31. Dezember DaimlerChrysler verlassen. In dieser Zeit habe ich unter anderem zwei Gesellschaften unseres Unternehmens in Südafrika und den USA sowie den Nutzfahrzeugvertrieb geleitet. Danach folgten 17 Jahre als Vorstandsvorsitzender, von 1988 bis 1995 bei der Daimler-Benz Aerospace und seit 1995 bei Daimler-Benz bzw. DaimlerChrysler.
In den letzten Jahren hat unser Unternehmen sehr viel erreicht; das gibt mir großes Vertrauen in die Zukunft von DaimlerChrysler. Wir haben gezeigt, dass wir fähig sind, allen Herausforderungen mit einer Entschlossenheit und Professionalität zu begegnen, die in der Automobilindustrie einzigartig sind. Unser Fokus auf das globale Automobilgeschäft ist nun klar definiert. Durch unser Marken- und Produktportfolio sowie die Präsenz in mehr als 200 Ländern sind wir einzigartig aufgestellt. Die Konzernergebnisse verbessern sich stetig und wir sind auf dem besten Wege, die Ziele, die unter meinem Vorstandsvorsitz gesetzt wurden, zu erreichen.
Angesichts der positiven Entwicklung waren der Aufsichtsrat der DaimlerChrysler AG und ich uns einig, dass Ende 2005 der optimale Zeitpunkt für einen Wechsel in der Führung des Unternehmens gekommen ist. Darüber hinaus habe ich vollstes Vertrauen, dass mein Nachfolger Dieter Zetsche zusammen mit dem hervorragenden Team im Vorstand von DaimlerChrysler weiter auf diesem soliden Fundament aufbauen wird.
Bis zu meinem endgültigen Abschied ist es noch eine Weile hin. Bis dahin wünsche ich Ihnen persönlich alles Gute und danke Ihnen aufrichtig dafür, dass Sie mit Ihrer Arbeit dazu beigetragen haben, unser Unternehmen zum Erfolg zu führen. Ich verlasse DaimlerChrysler deshalb mit einem guten Gefühl und großer Zuversicht in die Zukunft dieses großartigen und einmaligen Unternehmens.
Ihr
Jürgen E. Schrempp
------------------------------------------------------------------------------------------------------------------------
Stuttgart, 28/07/2005
Dear employees,
I am writing to you personally because I believe it is important that you hear directly from me at the earliest possible opportunity the news that I will be leaving our company on December 31, 2005.
That date will mark the end of a career spanning more than 44 precious years of service to our company. The past 17 of these were spent as chairman of the Board of Management of Daimler-Benz, now DaimlerChrysler (since 1995), and Daimler-Benz aerospace (from 1988 to 1995). Prior to taking on these challenging responsibilities I had the privilege of leading group companies in both South Africa and the USA.
In recent times, we have settled into a performance pattern that gives me great confidence in the future of DaimlerChrysler. We have shown that we are able to meet the challenges that face us with a determination and professionalism that is unique in our great industry. Our tight focus on our global automotive business is now clearly defined. Our brand and product range, combined with our corporate presence in more than 200 countries, makes us very special indeed. Our results show steady improvement, and we are well on the track towards the achievement of targets set during my chairmanship.
With these accomplishments in mind, the Supervisory Board and I are in full agreement that the end of this year is the optimal time for a change of leadership at DaimlerChrysler. I also have complete confidence that my successor, Dr. Dieter Zetsche, together with the excellent team on our Board of Management will continue to build on these solid foundations.
There is a while to go before my departure, at which time I will tender my thanks to you in a more appropriate manner. Meanwhile you have my warmest best wishes as well as my sincere gratitude for helping to create the circumstances in which I will be able to leave in a good heart, and with great faith in the future of this magnificent, historic company.
Yours,
Jürgen E. Schrempp
Liebe Mitarbeiterinnen,
Liebe Mitarbeiter,
ich möchte mich persönlich an Sie wenden, weil es mir ein Anliegen ist, Sie so schnell wie möglich über die heutige Entscheidung zu informieren:
Nach über 44jähriger Firmenzugehörigkeit werde ich zum 31. Dezember DaimlerChrysler verlassen. In dieser Zeit habe ich unter anderem zwei Gesellschaften unseres Unternehmens in Südafrika und den USA sowie den Nutzfahrzeugvertrieb geleitet. Danach folgten 17 Jahre als Vorstandsvorsitzender, von 1988 bis 1995 bei der Daimler-Benz Aerospace und seit 1995 bei Daimler-Benz bzw. DaimlerChrysler.
In den letzten Jahren hat unser Unternehmen sehr viel erreicht; das gibt mir großes Vertrauen in die Zukunft von DaimlerChrysler. Wir haben gezeigt, dass wir fähig sind, allen Herausforderungen mit einer Entschlossenheit und Professionalität zu begegnen, die in der Automobilindustrie einzigartig sind. Unser Fokus auf das globale Automobilgeschäft ist nun klar definiert. Durch unser Marken- und Produktportfolio sowie die Präsenz in mehr als 200 Ländern sind wir einzigartig aufgestellt. Die Konzernergebnisse verbessern sich stetig und wir sind auf dem besten Wege, die Ziele, die unter meinem Vorstandsvorsitz gesetzt wurden, zu erreichen.
Angesichts der positiven Entwicklung waren der Aufsichtsrat der DaimlerChrysler AG und ich uns einig, dass Ende 2005 der optimale Zeitpunkt für einen Wechsel in der Führung des Unternehmens gekommen ist. Darüber hinaus habe ich vollstes Vertrauen, dass mein Nachfolger Dieter Zetsche zusammen mit dem hervorragenden Team im Vorstand von DaimlerChrysler weiter auf diesem soliden Fundament aufbauen wird.
Bis zu meinem endgültigen Abschied ist es noch eine Weile hin. Bis dahin wünsche ich Ihnen persönlich alles Gute und danke Ihnen aufrichtig dafür, dass Sie mit Ihrer Arbeit dazu beigetragen haben, unser Unternehmen zum Erfolg zu führen. Ich verlasse DaimlerChrysler deshalb mit einem guten Gefühl und großer Zuversicht in die Zukunft dieses großartigen und einmaligen Unternehmens.
Ihr
Jürgen E. Schrempp
------------------------------------------------------------------------------------------------------------------------
Stuttgart, 28/07/2005
Dear employees,
I am writing to you personally because I believe it is important that you hear directly from me at the earliest possible opportunity the news that I will be leaving our company on December 31, 2005.
That date will mark the end of a career spanning more than 44 precious years of service to our company. The past 17 of these were spent as chairman of the Board of Management of Daimler-Benz, now DaimlerChrysler (since 1995), and Daimler-Benz aerospace (from 1988 to 1995). Prior to taking on these challenging responsibilities I had the privilege of leading group companies in both South Africa and the USA.
In recent times, we have settled into a performance pattern that gives me great confidence in the future of DaimlerChrysler. We have shown that we are able to meet the challenges that face us with a determination and professionalism that is unique in our great industry. Our tight focus on our global automotive business is now clearly defined. Our brand and product range, combined with our corporate presence in more than 200 countries, makes us very special indeed. Our results show steady improvement, and we are well on the track towards the achievement of targets set during my chairmanship.
With these accomplishments in mind, the Supervisory Board and I are in full agreement that the end of this year is the optimal time for a change of leadership at DaimlerChrysler. I also have complete confidence that my successor, Dr. Dieter Zetsche, together with the excellent team on our Board of Management will continue to build on these solid foundations.
There is a while to go before my departure, at which time I will tender my thanks to you in a more appropriate manner. Meanwhile you have my warmest best wishes as well as my sincere gratitude for helping to create the circumstances in which I will be able to leave in a good heart, and with great faith in the future of this magnificent, historic company.
Yours,
Jürgen E. Schrempp
07-28-05, 07:29 PM
#2
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Posts: n/a
The front page article on nytimes.com had much juicier passages though:
But analysts and shareholders welcomed the departure with something close to euphoria today.
...
"Schrempp is one of the last dinosaurs of Germany Inc.," said Arndt Ellinghorst, an analyst at Dresdner Kleinwort Wasserstein, using a phrase that connotes old-style German business practices. "He represents a strategy of acquiring assets and building empires that just didn't work."
...
By making a clean break with its boss of 10 years, DaimlerChrysler may be trying to avoid the allegations of cronyism and corruption that have dogged Volkswagen, where the former chief executive casts a long shadow over the company from his perch as head of the supervisory board and the senior employee representative on the board resigned following charges that he had accepted bribes.
...
The challenge of integrating a German-American colossus, with very different corporate cultures, was even thornier. Chrysler, which had been prospering when Daimler-Benz took it over, soon fell into deep financial trouble, losing 662 million euros ($799 million) in 2001. That consumed the time and energy of DaimlerChrysler's top executives.
The result, critics say, was that Mr. Schrempp and other top executives neglected Mercedes, which then began to sputter. Its models slid to near the bottom of rankings of vehicle reliability - an affront to German standards of engineering excellence.
But analysts and shareholders welcomed the departure with something close to euphoria today.
...
"Schrempp is one of the last dinosaurs of Germany Inc.," said Arndt Ellinghorst, an analyst at Dresdner Kleinwort Wasserstein, using a phrase that connotes old-style German business practices. "He represents a strategy of acquiring assets and building empires that just didn't work."
...
By making a clean break with its boss of 10 years, DaimlerChrysler may be trying to avoid the allegations of cronyism and corruption that have dogged Volkswagen, where the former chief executive casts a long shadow over the company from his perch as head of the supervisory board and the senior employee representative on the board resigned following charges that he had accepted bribes.
...
The challenge of integrating a German-American colossus, with very different corporate cultures, was even thornier. Chrysler, which had been prospering when Daimler-Benz took it over, soon fell into deep financial trouble, losing 662 million euros ($799 million) in 2001. That consumed the time and energy of DaimlerChrysler's top executives.
The result, critics say, was that Mr. Schrempp and other top executives neglected Mercedes, which then began to sputter. Its models slid to near the bottom of rankings of vehicle reliability - an affront to German standards of engineering excellence.
07-28-05, 07:47 PM
#3
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Posts: n/a
http://news.bbc.co.uk/2/hi/business/4723779.stm
Another article here. THe head of Chrysler now will run Daihmler, this could be a new direction for the company,
Another article here. THe head of Chrysler now will run Daihmler, this could be a new direction for the company,
07-28-05, 10:17 PM
#5
Lexus Test Driver
I think Daimler needs some new blood at the helm. Wonder if they'll focus more on quality now... they have the other parts of the game down.
I really was quite sad to see that Wolfgang Bernhard depart several months back... or was forced out I should say. I def. like what he did to Mercedes and AMG.
I really was quite sad to see that Wolfgang Bernhard depart several months back... or was forced out I should say. I def. like what he did to Mercedes and AMG.
Trending Topics
07-31-05, 07:35 AM
#8
Super Moderator
How Zetsche won top DCX job
Sunday, July 31, 2005
Intensifying pressure from key investors led to Schrempp's early exit, Chrysler head's rise.
By Brett Clanton and Christine Tierney / The Detroit News
High above the north Atlantic in a Gulfstream V jet, DaimlerChrysler AG's CEO-to-be Dieter Zetsche raised a glass of champagne Thursday night and toasted the future with four of his closest allies.
It was the culmination of a frenetic week that saw a historic changing of the guard at the automaker created by the 1998 union of Daimler-Benz AG and Chrysler Corp.
That morning in Stuttgart, Germany, DaimlerChrysler's supervisory board promoted Zetsche, CEO of the Chrysler Group, to replace Juergen Schrempp, the charismatic dealmaker whose 10-year reign was marred by uneven profits and strategic missteps. And a North American, Tom LaSorda, was returned to the top of Chrysler.
To avoid a messy and public power struggle splitting executives into warring camps, the succession was engineered in secret meetings over many weeks, according to several people familiar with the events.
Zetsche outmaneuvered his rival, Mercedes-Benz chief Eckhard Cordes, who was kept in the dark until the eve of the announcement.
Schrempp, survivor of numerous boardroom battles, opted not to fight to serve out his contract or lobby for his protege Cordes.
The upheaval was cheered by investors and employees convinced Zetsche will bring a new era of prosperity to Stuttgart and Auburn Hills.
The wheels of change were set in motion in May, when Schrempp and close ally Hilmar Kopper, head of the company's supervisory board, met to discuss a graceful exit for the embattled executive.
One month before, Schrempp had been grilled at the annual meeting by angry shareholders over spotty profitability, the latest in a string of attacks on his leadership.
With the company's second-quarter results expected to show improvements at the ailing Mercedes unit and continued gains for Chrysler, the timing was right for Schrempp to leave on a high note, according to sources with knowledge of the dealings.
Kopper and Schrempp agreed that Zetsche, who led a turnaround at Chrysler, would be the prudent choice to lead the global company, even though Mercedes chief Cordes was closer to Schrempp and the favorite to land the position.
Cordes, the biggest loser in the shakeup, offered his resignation Thursday. Only after a meeting with Kopper did he agree to reconsider, although many within the company believe he'll ultimately leave.
DaimlerChrysler officials declined to discuss the decisions and events leading up to the management announcements.
The quiet maneuvering, kept secret from even the most senior managers, suggests that Schrempp wanted to establish a solid succession that would preserve his legacy. Schrempp, in a conference call Thursday to discuss second-quarter results, struck a positive tone.
"I must tell you very clearly that I'm a very happy man about the decision and the timing and about the way the company goes," he said.
His jovial remarks contrasted with the formal posture of Zetsche and Cordes, longtime rivals for the top job at DaimlerChrysler, who awkwardly participated in Thursday's quarterly conference call.
It is unclear when Zetsche was told he would be appointed CEO, but the move had been in the works for weeks, known only to a tight circle of DaimlerChrysler insiders.
Indeed, Chrysler Chief Operating Officer Tom LaSorda, the Canadian son of union leaders, learned only last week he would become CEO of the Auburn Hills automaker. Chrysler product development chief Eric Ridenour was told he would advance to chief operating officer at about the same time, according to sources. Both men went before DaimlerChrysler's supervisory board on Wednesday to be confirmed for their new positions.
Setbacks foretold exit
Schrempp seized on the automaker's second-quarter performance to make the point that his aggressive and controversial global expansion strategy was working.
"This is a fine base from which to move forward," he said. "Clearly, DaimlerChrysler is not yet where it wants to be or where I know it will certainly arrive in the foreseeable future. Nevertheless, we have created the preconditions for success, and we are heading precisely in the right direction."
A supervisory board member representing employees said in an interview with the German daily newspaper Stuttgarter Zeitung that Schrempp was leaving with all honors.
But even his backers knew he had been weakened by a series of setbacks that may have sped his departure before his contract expired in 2008.
He never fully recovered from a boardroom rebellion in April 2004 in which he advocated bailing out struggling Japanese partner Mitsubishi Motors Corp., a position that Zetsche and the majority of members on the lower board of management did not support.
It was Zetsche, in fact, who laid out a withering case against rescuing Mitsubishi.
Cordes, the longtime Schrempp loyalist, was one of only two other management board members to back Schrempp, a move that ironically may have weakened his standing as heir apparent.
The supervisory board rejected Schrempp's Mitsubishi strategy, a rebuke that led many to conclude he had lost his ironfisted grip on the company.
While Schrempp survived, former Chrysler Chief Operating Officer Wolfgang Bernhard was not so lucky. His opposition to the bailout led to his eventual downfall at the company. He now heads Volkswagen AG's Volkswagen brand division.
Zetsche emerged from the flap as an astute executive with the backbone to stand up to his boss at the risk of his job.
Given the choice of losing him or Cordes, the supervisory board preferred to retain Zetsche -- and Schrempp didn't stand in the way.
Cordes was apparently stunned. He initially appeared to accept the supervisory board's decision, but then abruptly tendered his resignation as the Thursday board meeting was coming to a close.
"That's when the supervisory board members realized that he had blown his top. He had counted on succeeding his mentor Schrempp," said the German business newspaper Handelsblatt.
Chrysler success paved way
Lending weight to Zetsche's bid to succeed Schrempp was his strong performance at Chrysler. Meanwhile, DaimlerChrysler as a whole kept disappointing investors. As one business improved, another stumbled into trouble. Although many small and institutional investors had carped about the stock's weak performance for years without any effect, the company could not ignore mounting pressure from its largest stockholder, Deutsche Bank AG.
As part of a broader trend sweeping corporate Germany, Deutsche Bank is moving to sell stakes in unrelated businesses. It had acquired those stakes as part of the traditional German cross-holding alliances, which created a cozy system whereby top managers could sit on one another's boards and protect each other. But Deutsche Bank CEO Josef Ackermann wants to unwind those relationships and reap proceeds from the asset sales.
The bank was in a hurry because upcoming elections could bring in a new government that would reinstate capital gains taxes. But Deutsche Bank stood to lose money on the sale of its 10 percent DaimlerChrysler holding at recent share prices. On Thursday, when the stock rallied on news of Schrempp's departure, Deutsche Bank sold $1.7 billion worth of DaimlerChrysler shares.
Deutsche Bank's position as the leading shareholder had protected Schrempp during previous crises, such as Chrysler's plunge into the red in 2000. Kopper, the bank's former chairman, has been Schrempp's friend and mentor.
Zetsche will face many challenges. Topping the list will be putting Mercedes back on track and finding a successor to Cordes, who is now expected to leave along with Schrempp at the end of the year.
Among those considered in the running is Joe Eberhardt, a German executive who heads marketing and sales at Chrysler and who has brought a back-to-basics approach to the company's advertising after a failed campaign featuring pop singer Celine Dion.
But on Thursday evening, Zetsche put pressing issues aside to celebrate. Flying back to Detroit with LaSorda, Eberhardt, Ridenour and Jason Vines, Chrysler's top public relations executive, he broke out the bubbly.
The celebration continued on Friday when hundreds of Chrysler employees gathered in the vast atrium at the Auburn Hills headquarters for the formal announcement.
Frank Klegon, the newly promoted product development chief, spoke first, followed by Ridenour. LaSorda joked that he may be able to fill Zetsche's shoes but doubted he would duplicate Zetsche's walrus-like mustache.
As Zetsche came forward, employees erupted in applause, whistles and shouts. Zetsche stepped to the microphone and credited employees with the automaker's comeback and urged them to keep up the momentum. Zetsche assured the crowd that while he may be moving to Germany, Auburn Hills will be a second home.
"I am," he said, "and I always will be, a Chrysler man."
Intensifying pressure from key investors led to Schrempp's early exit, Chrysler head's rise.
By Brett Clanton and Christine Tierney / The Detroit News
High above the north Atlantic in a Gulfstream V jet, DaimlerChrysler AG's CEO-to-be Dieter Zetsche raised a glass of champagne Thursday night and toasted the future with four of his closest allies.
It was the culmination of a frenetic week that saw a historic changing of the guard at the automaker created by the 1998 union of Daimler-Benz AG and Chrysler Corp.
That morning in Stuttgart, Germany, DaimlerChrysler's supervisory board promoted Zetsche, CEO of the Chrysler Group, to replace Juergen Schrempp, the charismatic dealmaker whose 10-year reign was marred by uneven profits and strategic missteps. And a North American, Tom LaSorda, was returned to the top of Chrysler.
To avoid a messy and public power struggle splitting executives into warring camps, the succession was engineered in secret meetings over many weeks, according to several people familiar with the events.
Zetsche outmaneuvered his rival, Mercedes-Benz chief Eckhard Cordes, who was kept in the dark until the eve of the announcement.
Schrempp, survivor of numerous boardroom battles, opted not to fight to serve out his contract or lobby for his protege Cordes.
The upheaval was cheered by investors and employees convinced Zetsche will bring a new era of prosperity to Stuttgart and Auburn Hills.
The wheels of change were set in motion in May, when Schrempp and close ally Hilmar Kopper, head of the company's supervisory board, met to discuss a graceful exit for the embattled executive.
One month before, Schrempp had been grilled at the annual meeting by angry shareholders over spotty profitability, the latest in a string of attacks on his leadership.
With the company's second-quarter results expected to show improvements at the ailing Mercedes unit and continued gains for Chrysler, the timing was right for Schrempp to leave on a high note, according to sources with knowledge of the dealings.
Kopper and Schrempp agreed that Zetsche, who led a turnaround at Chrysler, would be the prudent choice to lead the global company, even though Mercedes chief Cordes was closer to Schrempp and the favorite to land the position.
Cordes, the biggest loser in the shakeup, offered his resignation Thursday. Only after a meeting with Kopper did he agree to reconsider, although many within the company believe he'll ultimately leave.
DaimlerChrysler officials declined to discuss the decisions and events leading up to the management announcements.
The quiet maneuvering, kept secret from even the most senior managers, suggests that Schrempp wanted to establish a solid succession that would preserve his legacy. Schrempp, in a conference call Thursday to discuss second-quarter results, struck a positive tone.
"I must tell you very clearly that I'm a very happy man about the decision and the timing and about the way the company goes," he said.
His jovial remarks contrasted with the formal posture of Zetsche and Cordes, longtime rivals for the top job at DaimlerChrysler, who awkwardly participated in Thursday's quarterly conference call.
It is unclear when Zetsche was told he would be appointed CEO, but the move had been in the works for weeks, known only to a tight circle of DaimlerChrysler insiders.
Indeed, Chrysler Chief Operating Officer Tom LaSorda, the Canadian son of union leaders, learned only last week he would become CEO of the Auburn Hills automaker. Chrysler product development chief Eric Ridenour was told he would advance to chief operating officer at about the same time, according to sources. Both men went before DaimlerChrysler's supervisory board on Wednesday to be confirmed for their new positions.
Setbacks foretold exit
Schrempp seized on the automaker's second-quarter performance to make the point that his aggressive and controversial global expansion strategy was working.
"This is a fine base from which to move forward," he said. "Clearly, DaimlerChrysler is not yet where it wants to be or where I know it will certainly arrive in the foreseeable future. Nevertheless, we have created the preconditions for success, and we are heading precisely in the right direction."
A supervisory board member representing employees said in an interview with the German daily newspaper Stuttgarter Zeitung that Schrempp was leaving with all honors.
But even his backers knew he had been weakened by a series of setbacks that may have sped his departure before his contract expired in 2008.
He never fully recovered from a boardroom rebellion in April 2004 in which he advocated bailing out struggling Japanese partner Mitsubishi Motors Corp., a position that Zetsche and the majority of members on the lower board of management did not support.
It was Zetsche, in fact, who laid out a withering case against rescuing Mitsubishi.
Cordes, the longtime Schrempp loyalist, was one of only two other management board members to back Schrempp, a move that ironically may have weakened his standing as heir apparent.
The supervisory board rejected Schrempp's Mitsubishi strategy, a rebuke that led many to conclude he had lost his ironfisted grip on the company.
While Schrempp survived, former Chrysler Chief Operating Officer Wolfgang Bernhard was not so lucky. His opposition to the bailout led to his eventual downfall at the company. He now heads Volkswagen AG's Volkswagen brand division.
Zetsche emerged from the flap as an astute executive with the backbone to stand up to his boss at the risk of his job.
Given the choice of losing him or Cordes, the supervisory board preferred to retain Zetsche -- and Schrempp didn't stand in the way.
Cordes was apparently stunned. He initially appeared to accept the supervisory board's decision, but then abruptly tendered his resignation as the Thursday board meeting was coming to a close.
"That's when the supervisory board members realized that he had blown his top. He had counted on succeeding his mentor Schrempp," said the German business newspaper Handelsblatt.
Chrysler success paved way
Lending weight to Zetsche's bid to succeed Schrempp was his strong performance at Chrysler. Meanwhile, DaimlerChrysler as a whole kept disappointing investors. As one business improved, another stumbled into trouble. Although many small and institutional investors had carped about the stock's weak performance for years without any effect, the company could not ignore mounting pressure from its largest stockholder, Deutsche Bank AG.
As part of a broader trend sweeping corporate Germany, Deutsche Bank is moving to sell stakes in unrelated businesses. It had acquired those stakes as part of the traditional German cross-holding alliances, which created a cozy system whereby top managers could sit on one another's boards and protect each other. But Deutsche Bank CEO Josef Ackermann wants to unwind those relationships and reap proceeds from the asset sales.
The bank was in a hurry because upcoming elections could bring in a new government that would reinstate capital gains taxes. But Deutsche Bank stood to lose money on the sale of its 10 percent DaimlerChrysler holding at recent share prices. On Thursday, when the stock rallied on news of Schrempp's departure, Deutsche Bank sold $1.7 billion worth of DaimlerChrysler shares.
Deutsche Bank's position as the leading shareholder had protected Schrempp during previous crises, such as Chrysler's plunge into the red in 2000. Kopper, the bank's former chairman, has been Schrempp's friend and mentor.
Zetsche will face many challenges. Topping the list will be putting Mercedes back on track and finding a successor to Cordes, who is now expected to leave along with Schrempp at the end of the year.
Among those considered in the running is Joe Eberhardt, a German executive who heads marketing and sales at Chrysler and who has brought a back-to-basics approach to the company's advertising after a failed campaign featuring pop singer Celine Dion.
But on Thursday evening, Zetsche put pressing issues aside to celebrate. Flying back to Detroit with LaSorda, Eberhardt, Ridenour and Jason Vines, Chrysler's top public relations executive, he broke out the bubbly.
The celebration continued on Friday when hundreds of Chrysler employees gathered in the vast atrium at the Auburn Hills headquarters for the formal announcement.
Frank Klegon, the newly promoted product development chief, spoke first, followed by Ridenour. LaSorda joked that he may be able to fill Zetsche's shoes but doubted he would duplicate Zetsche's walrus-like mustache.
As Zetsche came forward, employees erupted in applause, whistles and shouts. Zetsche stepped to the microphone and credited employees with the automaker's comeback and urged them to keep up the momentum. Zetsche assured the crowd that while he may be moving to Germany, Auburn Hills will be a second home.
"I am," he said, "and I always will be, a Chrysler man."
A letter to Chrysler employees from new CEO Dieter Zetsche
This is an excerpt of a letter sent Thursday:
It goes without saying that I feel honored to have been given the confidence of the Board to lead our great company into the future. But, I'm convinced as well that you all should feel proud, as this nomination clearly recognizes the tremendous progress achieved at the Chrysler Group, thanks to the contribution of every single one of you! I want to personally thank you for that effort.
The last five years have been tremendously gratifying for me. My family and I loved living in Michigan. Chrysler is a wonderful company -- vibrant, emotional and very focused. You folks are simply the best. My heart will always stay with this organization. And, by the way, whether you like it or not, I can promise you, that beyond the end of this year, I will stay deeply involved in Chrysler's dealings and spend a fair share of my time in Auburn Hills.
Tom LaSorda has contributed a lot to the successes of the Chrysler Group during the last five years, both as head of manufacturing and as the (chief operating officer). With Tom as your new CEO, we can assure continuity and success for the Chrysler Group. I am personally very happy about his appointment. My congratulations and best wishes go to him.
The unquestioned success story of our new products has been developed under the leadership of Eric Ridenour. It is, therefore, only logical to me that Eric assume the position of (chief operating officer). I applaud the decision of the Board in making this appointment and wish Eric all the best.
As in the past, Chrysler's future success will depend on how well we work together. Simply put, the entire Chrysler Group, starting at the top echelon, must continue to work as one team. We have the right players in place to assure this, and I urge all of you to support this change. We are a strong team, and my confidence in you could not be greater.
Now, it's time to continue doing what we've been doing so well lately -- setting ourselves apart in the market. Keep up the good work!
-- Dieter
This is an excerpt of a letter sent Thursday:
It goes without saying that I feel honored to have been given the confidence of the Board to lead our great company into the future. But, I'm convinced as well that you all should feel proud, as this nomination clearly recognizes the tremendous progress achieved at the Chrysler Group, thanks to the contribution of every single one of you! I want to personally thank you for that effort.
The last five years have been tremendously gratifying for me. My family and I loved living in Michigan. Chrysler is a wonderful company -- vibrant, emotional and very focused. You folks are simply the best. My heart will always stay with this organization. And, by the way, whether you like it or not, I can promise you, that beyond the end of this year, I will stay deeply involved in Chrysler's dealings and spend a fair share of my time in Auburn Hills.
Tom LaSorda has contributed a lot to the successes of the Chrysler Group during the last five years, both as head of manufacturing and as the (chief operating officer). With Tom as your new CEO, we can assure continuity and success for the Chrysler Group. I am personally very happy about his appointment. My congratulations and best wishes go to him.
The unquestioned success story of our new products has been developed under the leadership of Eric Ridenour. It is, therefore, only logical to me that Eric assume the position of (chief operating officer). I applaud the decision of the Board in making this appointment and wish Eric all the best.
As in the past, Chrysler's future success will depend on how well we work together. Simply put, the entire Chrysler Group, starting at the top echelon, must continue to work as one team. We have the right players in place to assure this, and I urge all of you to support this change. We are a strong team, and my confidence in you could not be greater.
Now, it's time to continue doing what we've been doing so well lately -- setting ourselves apart in the market. Keep up the good work!
-- Dieter
07-31-05, 09:16 AM
#9
Lexus Test Driver
Maybe I just don't hear about these things often enough, but it seems to me that once you get higher and higher in the DaimlerChrysler ranks.... the more unsecure your job is because it seems that one wrong comment in the boardroom will mean the end of you. Those germans rule with an iron fist....
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