After 13 years as head of Daimler, Dieter Zetsche will leave office. At the general meeting of the car company in May 2019, his successor will be announced, the previous development director Ola Källenius , That’s what the supervisory board of the car company decided on Wednesday.
The personality in itself is initially not surprising, after all, the 49-year-old Swede Källenius was long considered Crown Prince of the 65-year-old Zetsches. It was also envisaged that Zetsche would move to the top of the Supervisory Board in 2021 after a two-year cooling-off phase. Behind today’s decision is even more: the will of the Supervisory Board to ensure stability. And to end speculation about leaving Zetsches.
The suspicion of the traffic authorities, Daimler has manipulated hundreds of thousands of diesel cars , had put a lot of pressure on the CEO. There are also investigations by the EU Commission regarding a car cartel, that the MIRROR uncovered , And last but not least, Daimler did not do business either: the group had to warn its shareholders against declining earnings.
Despite – or perhaps because of – these uncertainties, a revolution at Daimler is now over. “The impending change in the automotive industry requires competence and continuity in the management of the company,” says the IG Metall district manager and Daimler Supervisory Board Roman Zitzelsberger.
The proponents of a more radical leadership change have suffered a defeat. Until recently, there was a fierce competition between two people and their future concepts.
It is clear: From the end of 2019, Daimler will consist of three largely independent units – cars, trucks and services , However, it was debatable how independent these units should actually be.
CFO Bodo Uebber stood for a more radical version of the change. The car division around the Mercedes brand, the heart of the future Daimler holding, should therefore have its own boss. Uebber himself would probably have moved to the top of the parent holding company.
Zetsche, on the other hand, stood for the softer version. The power should not be divided between holding and car division, but remain in one hand. Zetsches confidant Ola Källenius, so the idea would lead both in personal union.
“Finally clear
how to go on ”
This version has now prevailed, with an important consequence: the group will not have three important chiefs in the future, but only two. It is a cut that enables Zetsche to continue to play a key role in the Group in the future.
“The system Zetsche has prevailed,” says Arndt Ellinghorst, auto expert of the analysis house Evercore ISI. “Now it’s finally clear how things go on.”
The staff representatives also support the new structure. “We are convinced that through this unit we will promote the clout of the Group and the strength of the parent company”, says Michael Brecht, Works Council Chairman and Deputy Chairman of the Supervisory Board at Daimler. Both Zetsche and his successor Källenius he expresses confidence.
This backing is remarkable: the relationship between the works council and the management of the group has recently noticeably cooled off. Brecht had asked Zetsche to clarify all allegations of the traffic authorities consistently.
Now it says on the part of the workers, for Zetsche the presumption of innocence applies. More importantly, his successor Källenius was unencumbered in the diesel affair. He only became head of the development department at the beginning of 2017, responsible for engines and exhaust systems. That was long after the scandal became known.
Källenius is now facing big challenges. Many Mercedes models are at the end of their life cycle. The new boss has to renew the product range – and develop a strategy for the era of e-mobility. Daimler is facing an uncertain future.