Zetsche: Mercedes-Benz “will be leading the premium market”err

We’ve said it before and we’ll say it again. Daimler should just change their name to DaimlerBenz, the way shareholders originally wanted it before the Daimler and Chrysler merger. Well now that Chrysler is gone, Daimler will be focusing most of its attention towards Mercedes-Benz. The company is now aiming to raise profitability to its premium car group to the head of its class.

“We will drive our operating margin so far that we will be leading the premium market,” DaimlerChrysler CEO, Dieter Zetsche told German car magazine Auto Motor und Sport.

Mercedes is hoping to surpass its biggest rival BMW. In the first quarter of 2007, Mercedes’ profitability amounted to 6.6 percent while BMW reported a 7.6 percent increase.

Zetsche hopes to boost revenue at the future Daimler by 5-6 percent per year.

Earlier this week, DaimlerChrysler sold a 80.1 percent stake in Chrysler Group to Cerberus Capital Management of New York, a private equity firm. Cerberus Capital Management is paying $7.4 billion for Chrysler, which unbinds the 1998 DaimlerChrysler merger.

DaimlerChrysler will now change its name to Daimler AG while Chrysler Group will change its name to Chrysler Holding. Chrysler has now become the first privately held company out of the big three.
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Will_ - 5/19/2007 9:11:14 PM

+1 Boost

Well, let's see how well they do now that their supposed "leech" has now been burned off.

LexusNumberOne4ever - 5/19/2007 10:32:47 PM

-8 Boost

It's great to see you back Will. I thought some German fan had kidnapped you and was holding you as a hostage.

On the topic, I think they will have to adopt Toyota's lean production system (like Porsche did) in order to be more profitable.

enthusiastx11 - 5/19/2007 11:16:32 PM

+3 Boost

'supposed leech?'

the merger with chrysler was the source of many of mercedes problems from 1998 forward. with enormous problems at chrysler, management devoted far too much energy to fixing chrysler and not enough to mercedes.

thankfully, the deadweight has been let go.

LexusNumberOne4ever - 5/19/2007 11:37:04 PM

-6 Boost

enthusiast: Why did you deboost me?

dav256 - 5/20/2007 9:34:58 AM

+5 Boost

LexusNumberOne4ever:
On the topic, I think they will have to adopt Toyota's lean production system (like Porsche did) in order to be more profitable.

It´s impossible for Mercedes/BMW/AUDI to adopt Toyota's lean production system 1:1, because of the individualisation. Mercedes got a production system called Core(named after the manager Cordes). Core contains many processes of the lean production, but it also allows individualisation.

truecarlover - 5/20/2007 9:49:55 AM

+8 Boost

LexusNumberOne - Mercedes vehicles are too complex to implement most of Toyotas production methods. Toyotas methods are great - but they are mainly for mass market vehicles. Porsche gleaned some things - but their processes are not exactly similar to Toyota. Porsche benefits from cheaper materials because they purchase with the VW group, which is why they increased their stake in the company. Likewise Daimler is keeping 19% of Chrysler group for that specific purpose. Just like with personal items - you save when you buy in bulk.

LexusNumberOne4ever - 5/20/2007 11:11:35 PM

0 Boost

Thanks for correcting me.

S4cabriofoxone - 5/20/2007 1:18:14 AM

+2 Boost

Audi and Mercedes are both saying that they'll topple BMW... it will be an interesting race between the German trio.

LexusNumberOne4ever - 5/20/2007 2:32:13 AM

-1 Boost

Some BMW fans claim that neither Lexus nor audi competes in their league....
Anyways, who do you think will topple BMW first?

528i - 5/20/2007 3:51:48 AM

+2 Boost

I think MB will, and then Audi will come up.

S4cabriofoxone - 5/20/2007 9:35:23 AM

+1 Boost

I agree with 528i. LexusNumberOne, BMW is just displaying vain ignorance that is typical of a brand on top- look at GM.

S4cabriofoxone - 5/20/2007 9:31:43 PM

+1 Boost

They are assuming that a strong company like Audi can't topple them. Is it that hard for you to see? If they ignore Audi, they're not helping themselves. I love BMW, their cars as well as the brand itself (I want an M6 convertible at the moment), but ignorance doesn't get them anywhere.

theman - 5/20/2007 7:56:53 AM

+5 Boost

Mercedes Benz will be back on top, their new generation of cars are incredible and they have by far the most powerful brand name...Their lead is inevitable...

dav256 - 5/20/2007 10:48:06 AM

+4 Boost

"We’ve said it before and we’ll say it again. Daimler should just change their name to DaimlerBenz.."

Administrators in the town of Mannheim (located in the Baden region, where Carl Benz was born - a region of Baden-Württemberg) are doing their best to encourage Daimler AG leader Dieter Zetsche to reclaim the Benz name. I hope they´ll be successful.

M53R - 5/20/2007 12:40:21 PM

+3 Boost

Everyone is after BMW.

I just hope BMW doesnt just sit down and watch while others take over them, just like what GM did. Im sure BMW isnt as dumb as GM, so they are not going to let the lead go easily.

gsh23 - 5/20/2007 3:54:58 PM

+1 Boost

i think it will be benz. after all, if they survived such a crappy period with chrysler, they should be better this time around with more focus and attention. but of course, last time management said they wanted to up profit margins the result was the crapbox ML class and first round C class. lets hope they act like GM and feel as if tomorrow will be their last day....

S4cabriofoxone - 5/20/2007 9:32:42 PM

+3 Boost

You mean, let's hope they DON'T act like GM?

Agent63 - 5/21/2007 9:02:45 AM

+1 Boost

Sometimes some of you have to realize that the world is a big place and the marketplace is big as well. Mercedes can increase their sales and concentrate on their house brand instead of worrying about Chrysler when they were still together.

Having that said MB is fully capable of being more successful. Before any of the Toyota bandwagon-ers say that Lexus is king and Lexus rules all and yadadada don't forget just because Lexus is the most successful in the US it does not mean the rest of the world is buying into the whole 'pursuit of perfection.'

w209w114 - 5/21/2007 1:36:49 PM

+2 Boost

Just look at the history of the Mercedes-Benz brand and it will tell you where they are going. They have led strongly from day one and will continue to do so in the future. They are the brand with the largest lineup of models, from commercial vehicles to Passenger cars ALL UNDER THE SAME BRAND NAME and still manage to be prestigious and do every one of the things they set out to do extremely well.

Mercedes #1 forver

EliteRanger - 5/21/2007 3:00:52 PM

+3 Boost

w209w114: Finally!!!Someone who knows, good to meet you brother.

Lexus - 5/22/2007 1:49:54 AM

0 Boost

First of all "Nothing remain Number #1 forever, someone will eventually pass them. Look at Jaguar they almost went obsolete, but luckily the Jaguar concept C-FX is giving them hope of life again. Look at Chrysler? now they pretty much gone, and under new management.

To that one will remain number forever is just plain stupidity. Don't belief me ask the "Big Three" who think they be in that position forever, LOL............
And especially ask "GM" they will number automaker in the world's. And guess who number #1 now? that right! you got it, Toyota is number #1 for now.

Lexus - 5/22/2007 1:51:43 AM

-2 Boost

Let see what excuses the German fanboys have now when their MB break down or doesn't sales well.

enthusiastx11 - 5/22/2007 2:54:28 AM

+3 Boost

what the hell are you talking about?

moparman64 - 6/17/2007 6:55:33 PM

+1 Boost

why nobody talks about how chrysler HELP mb with sleeker cars,look at NEW CLS -LAST GENERATION OF LH CHRYSLERS,LOOK AT THAT NEW MB CROSSOVER-CHRYSLER PACIFICA,DO NOT DOWNPLAY CHRYSLER !!!!