20 Votes

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

omarrana submitted on 5/19/2007 Official Bell & Ross Timestamp: 4:10:47 PM

31 user comments | Category: New Cars | Source: | SOURCE: www.egmcartech.com

Tag Links: Mercedes, DaimlerChrysler

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

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I hooked up my accelerator to my brake lights. I hit the gas, people behind me stop, and I'm gone.
— omarrana (View Profile)

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Well, let's see how well they do now that their supposed "leech" has now been burned off.
— Will_ (View Profile)

Posted on 5/19/2007 9:11:14 PM | reply to this comment | Votes: 1

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.
— LexusNumberOne4ever (View Profile)

Posted on 5/19/2007 10:32:47 PM | | Votes: -8

'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.
— enthusiastx11 (View Profile)

Posted on 5/19/2007 11:16:32 PM | | Votes: 3

enthusiast: Why did you deboost me?
— LexusNumberOne4ever (View Profile)

Posted on 5/19/2007 11:37:04 PM | | Votes: -6

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.
— dav256 (View Profile)

Posted on 5/20/2007 9:34:58 AM | | Votes: 5

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.
— truecarlover (View Profile)

Posted on 5/20/2007 9:49:55 AM | | Votes: 8

Thanks for correcting me.
— LexusNumberOne4ever (View Profile)

Posted on 5/20/2007 11:11:35 PM | | Votes: 0

watch out when the c hits the streets...
— 1995e34 (View Profile)

Posted on 5/20/2007 12:27:09 AM | reply to this comment | Votes: 4

Audi and Mercedes are both saying that they'll topple BMW... it will be an interesting race between the German trio.
— S4cabriofoxone (View Profile)

Posted on 5/20/2007 1:18:14 AM | reply to this comment | Votes: 2

Some BMW fans claim that neither Lexus nor audi competes in their league....
Anyways, who do you think will topple BMW first?
— LexusNumberOne4ever (View Profile)

Posted on 5/20/2007 2:32:13 AM | | Votes: -1

I think MB will, and then Audi will come up.
— 528i (View Profile)

Posted on 5/20/2007 3:51:48 AM | | Votes: 2

I agree with 528i. LexusNumberOne, BMW is just displaying vain ignorance that is typical of a brand on top- look at GM.
— S4cabriofoxone (View Profile)

Posted on 5/20/2007 9:35:23 AM | | Votes: 1

how is bmw displaying this vain ignorance?
— 1995e34 (View Profile)

Posted on 5/20/2007 2:03:34 PM | | Votes: -3

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.
— S4cabriofoxone (View Profile)

Posted on 5/20/2007 9:31:43 PM | | Votes: 1

i still don't see an indicator of them disregaurding audi. they began offering awd on almost all models didn't they?

a few mouthy online enthusiasts doubting audi's capabilities is quite different than bmw doubting audi. i think bmw is confident enough with their accomplishments that they don't have to look over their shoulder every minute like a crack-head.

but i don't think it's out of ignorance of competition.
— 1995e34 (View Profile)

Posted on 5/21/2007 2:40:34 AM | | Votes: 0

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...
— theman (View Profile)

Posted on 5/20/2007 7:56:53 AM | reply to this comment | Votes: 5

"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.
— dav256 (View Profile)

Posted on 5/20/2007 10:48:06 AM | reply to this comment | Votes: 4

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.
— M53R (View Profile)

Posted on 5/20/2007 12:40:21 PM | reply to this comment | Votes: 3

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....
— gsh23 (View Profile)

Posted on 5/20/2007 3:54:58 PM | reply to this comment | Votes: 1

You mean, let's hope they DON'T act like GM?
— S4cabriofoxone (View Profile)

Posted on 5/20/2007 9:32:42 PM | | Votes: 3

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.'
— Agent63 (View Profile)

Posted on 5/21/2007 9:02:45 AM | reply to this comment | Votes: 1

and theres no way europe embraces the ES.
— 1995e34 (View Profile)

Posted on 5/21/2007 10:56:25 AM | | Votes: 2

"I think both BMW and Mercedes-Benz are not properly viewing the competitive landschape in which they compete. They seem to be holding on to old and arrogant notions of success."

HUH???!!!
— 1995e34 (View Profile)

Posted on 5/22/2007 7:25:10 AM | | Votes: 1

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
— w209w114 (View Profile)

Posted on 5/21/2007 1:36:49 PM | reply to this comment | Votes: 2

w209w114: Finally!!!Someone who knows, good to meet you brother.
— EliteRanger (View Profile)

Posted on 5/21/2007 3:00:52 PM | reply to this comment | Votes: 3

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 (View Profile)

Posted on 5/22/2007 1:49:54 AM | reply to this comment | Votes: 0

Let see what excuses the German fanboys have now when their MB break down or doesn't sales well.
— Lexus (View Profile)

Posted on 5/22/2007 1:51:43 AM | reply to this comment | Votes: -2

what the hell are you talking about?
— enthusiastx11 (View Profile)

Posted on 5/22/2007 2:54:28 AM | | Votes: 3

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 !!!!
— moparman64 (View Profile)

Posted on 6/17/2007 6:55:33 PM | reply to this comment | Votes: 1

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

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