Schrempp to stay on asCEO of DaimlerChrysler

29th April 2004, Comments 0 comments

29 April 2004 , NEW YORK - Juergen Schrempp is to remain the Chief Executive Officer of the Stuttgart-based transatlantic car giant DaimlerChrysler after the company's board expressed their full support for him Thursday at a meeting in New York, the firm said. The board fully supported the strategic direction of the carmaking concern. There had been speculation about Schrempp's future after since last week when DaimlerChrysler dramatically cut off a financial lifeline to Japan's ailing Mitsubishi Motors. A

 29 April 2004

NEW YORK - Juergen Schrempp is to remain the Chief Executive Officer of the Stuttgart-based transatlantic car giant DaimlerChrysler after the company's board expressed their full support for him Thursday at a meeting in New York, the firm said.

The board fully supported the strategic direction of the carmaking concern.

There had been speculation about Schrempp's future after since last week when DaimlerChrysler dramatically cut off a financial lifeline to Japan's ailing Mitsubishi Motors.

According to newspaper reports the 59-year-old chief executive offered to resign last week after a board revolt over his bid to secure additional financing for the troubled Japanese carmaker.

With Schrempp's grand strategy for forging a Welt AG (World Inc) unravelling, Germany's influential Frankfurter Allgemeine Zeitung reported Thursday that sources in Stuttgart said the supervisory board initially refused his offer, but would review the topic at Thursday's meeting.

Already under pressure as a result of the massive losses run up by its troubled US Chrysler arm, DaimlerChrysler's withdrawal from Mitsubishi's planned YEN 700 billion (EUR 5.4 billion) bailout had thrown into doubt the wisdom of Schrempp's policy of acquiring stakes in carmakers around the world to build an auto giant based on pillars in the US, Asia and Europe.

The board made a surprise announcement Thursday that Wolfgang Bernhard would not succeed Juergen Hubbert as the head of the Mercedes Car Group. Hubbert will remain on as head of Mercedes for the foreseeable future.

Bernhard would, however, remain on the board of directors.

DPA

Subject: German news

 

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