Daimler chief Zetsche says expects to stay on as CEO

FRANKFURT Sun Jan 20, 2013 1:42pm GMT

Daimler AG Chairman and head of Mercedes-Benz Cars Dr. Dieter Zetsche speaks with media just before the unveiling of the new Mercedes-Benz 2014 CLA-Class sedan, during a private preview at the Westin Book Cadillac Hotel in Detroit, Michigan January 13, 2013, on the eve of the the 2013 North American International Auto Show. REUTERS/James Fassinger

Daimler AG Chairman and head of Mercedes-Benz Cars Dr. Dieter Zetsche speaks with media just before the unveiling of the new Mercedes-Benz 2014 CLA-Class sedan, during a private preview at the Westin Book Cadillac Hotel in Detroit, Michigan January 13, 2013, on the eve of the the 2013 North American International Auto Show.

Credit: Reuters/James Fassinger

Related Topics

Quotes

   

FRANKFURT (Reuters) - Daimler (DAIGn.DE) Chief Executive Dieter Zetsche expects his contract to be renewed after his current term as head of the car and truck maker expires at the end of this year, he told a German newspaper.

Investors grew increasingly worried last year about Daimler's inability to close the performance gap with rivals Audi (VOWG_p.DE) and BMW (BMWG.DE), prompting media speculation about Zetsche's future.

"At the moment there are good indications that I will continue as the head of Daimler," Zetsche told Welt am Sonntag newspaper in an interview.

Daimler's supervisory board would take a decision on renewing his contract in February, he said.

The maker of Mercedes premium cars issued a profit warning in October, saying it was facing "significantly more difficult market conditions".

A source close to Daimler's supervisory board told Reuters in November that the problems would not stand in the way of renewing Zetsche's contract when the current one expires on December 31.

The German automotive group has promised 2 billion euros (1.7 billion pounds) in cost cuts at Mercedes by the end of 2014, the bulk of which to be front-loaded.

"I assume that we will be able to sell significantly more cars in the future and that our productivity will rise," Zetsche told the paper.

"Overall, the number of employees should remain largely constant," he added.

Zetsche also said he was satisfied with the group's shareholder structure, saying the risk of a takeover "belonged to the realm of the imagination".

Following a Chinese media report earlier this month that China Investment Corp (CIC) was interested buying a stake in the company, Zetsche told reporters at the Detroit auto show on Monday that he was not aware of such plans and was not in talks with the investor.

(Reporting by Jonathan Gould; Editing by Louise Heavens)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.