FIXING A CAR COMPANY: Zetsche on Mercedes: 'A lot of work is ahead'
CEO ready to turn around DaimlerChrysler's luxury division
Former Chrysler Group CEO Dieter Zetsche, now the head of Mercedes-Benz, is wasting no time in his effort to boost productivity at the luxury division of DaimlerChrysler AG.
CEO's aim is to improve quality
Zetsche said Monday that the division needs structural, long-term changes, and he will start making them before year's end. "A lot of work is ahead of us," he said in an interview at the Auburn Hills-based headquarters for the Chrysler Group.
Zetsche, the executive responsible for turning around Chrysler over the past five years, took over the Mercedes division on Sept. 1 and will become chairman of DaimlerChrysler AG on Jan. 1.
He said Mercedes does not need the same kind of restructuring that Chrysler announced in 2001, which called for plant closings and massive job cuts. The Chrysler Group has cut at least 40,000 jobs since 2000.
Zetsche noted that there are serious concerns at Mercedes nonetheless. While he expressed confidence in Mercedes' product plan going forward, he said the division needs sweeping improvements.
"The productivity issue is a major issue, and we have to address it," he said, noting that a plan could be announced before the first quarter of next year.
Click here for the full article