New setback for Mercedes as sales chief goes

6th July 2005, Comments 0 comments

6 July 2005, STUTTGART/BERLIN - German luxury carmaker Mercedes Benz's battle to boost earnings and address quality complaints received another setback Wednesday with the announcement of the sudden departure of the group's new sales chief Uwe Roehrig. Mercedes said Roehrig, 52, who was appointed to the key job earlier this year as part of a big management shakeout in the wake of a damaging company fraud scandal, is leaving for personal reasons, the group said. A successor has not been named. Despite signs

6 July 2005

STUTTGART/BERLIN - German luxury carmaker Mercedes Benz's battle to boost earnings and address quality complaints received another setback Wednesday with the announcement of the sudden departure of the group's new sales chief Uwe Roehrig.

Mercedes said Roehrig, 52, who was appointed to the key job earlier this year as part of a big management shakeout in the wake of a damaging company fraud scandal, is leaving for personal reasons, the group said. A successor has not been named.

Despite signs that Mercedes-Benz has been winning the struggle to improve the quality of its cars, Roehrig's departure comes at a critical time for the luxury carmaker as it presses on with a EUR 4 billion revamp in a bid to underpin earnings and face up to tough global competition.

Mercedes Benz's earnings slumped by 97 per cent to EUR 20 million in the fourth quarter of last year, setting alarm bells ringing among shareholders.

Once the jewel in the crown of auto giant DaimlerChrysler AG's transatlantic empire, Mercedes Benz earlier this year suffered another embarrassing blow when it was forced to recall 1.3 million cars worldwide.

As part of the fight to overhaul Mercedes-Benz, DaimlerChrysler announced in April the appointment of Rainer Schmueckle as the luxury group's new chief operating officer.

DPA

Subject: German news

0 Comments To This Article