For the Swabians, whoever gets a job “at the Daimler” is considered. Dieter Zetsche was chief executive there for 13 years. With a walrus beard and brisk performances he became a brand himself. Now he resigns – as one of the last of his kind.
obs / SWR – Südwestrundfunk / Daimler AG
Dieter Zetsche: Did not look good in the diesel affair
Wednesday, 22.05.2019
08:07 clock
His employees presented themselves Dieter Zetsche like as a solo entertainer. In cheerful video movies shook the Daimler-Chef a ketchup bottle and compare it to e-mobility (“You know something is coming, but not when and how much”). Sometimes he let his famous walrus beard disappear for a few seconds by film trick (“Not every change is an improvement”). In the video message at the turn of the year, Zetsche applied to Santa Claus for a new job.
Dieter Zetsche will step down on Wednesday, after 13 years at Daimler as CEO. With him, the car company loses a personality that presented itself always relaxed and unconventional to the outside. In his time as Chrysler-Chef he smashed once on open stage a glass with an electric guitar. But internally there was also the other Dieter Zetsche. The alpha animal that could be tough and uncompromising – and increasingly allergic to criticism.
“Petrol in the blood”
Daimler’s recent announcement that they were no longer distributing party donations was seen by many as a return coach for the unfamiliar severity of the diesel scandal. Federal Transport Minister Andreas Scheuer Zetsche had called publicity last year and threatened a billion-dollar fine. The responsible Federal Motor Transport Authority (KBA) later recalled 700,000 Mercedes vehicles. The diesel cars contained in the opinion of the authority an inadmissible defeat device.
It is still unclear whether Zetsche will go down in Daimler history as a star or as a top manager, at the diesel affair failed. But one thing is certain: With him, one of the last representatives of the old generation of motor coaches retires; the generation of managers who were said to have “gas in their blood” and knew every screw in the car. Zetsche counts to this manager league, just like the former VW bosses Martin Winterkorn and Ferdinand Piëch, The cars they had built were considered unrivaled. Accordingly, the bosses were undisputed, according to wide-legged they appeared.
The times have changed. The reputation of German auto engineers has suffered greatly under the diesel affair. New competitors such as Tesla from the USA or Geely from China want to join the world markets electric cars conquer. Students skip the lesson to be against the climate Change to demonstrate. The car threatens to lose its status as a status symbol. All this is reflected in the self-image and awareness of the car.
Zetsches successor Källenius: fresher, friendlier, greener
A new generation of managers is growing in boardrooms. It is not less hard or power conscious, but much quieter in tone. Among them is Zetsches successor, the new Daimler boss Ola Källenius, The native Swede wants to give Daimler a new image: fresher, friendlier, greener. Even before he took office, he announced that the group would be carbon neutral by 2039.
Uli deck / DPA
Zetsche, Källenius in October 2018 at the Paris Motor Show
How exactly this should work, Källenius will still have to explain. After all, Daimler also wants to continue hybrid vehicles offer whose engines partly still work with combustion technology. But the route is clear: In the long term, Daimler wants away from diesel and gasoline vehicles.
To achieve this, a lot of moderation is required. And that did not necessarily count to the strengths of the old manager’s guard. Daimler must enter into alliances in the future to create the technical change. In his former role as development chief Källenius has already done what would have been unthinkable years earlier: He regularly met with archrival engineers BMW met. The two premium manufacturers want to work together in the future. They have already merged their mobility services around Car2go and DriveNow. Next, they want to cooperate closely in autonomous driving.
Relaunch – also in own thing
Even the outgoing Daimler boss Zetsche has changed a lot – especially in his early years. He has the lofty World AG plans of his (even more self-confident) predecessor Jürgen Schrempp finished and Chrysler repelled. In addition, Daimler divested of holdings in Asian manufacturers such as Mitsubishi and Hyundai, Zetsche steered Daimler sovereign through the financial crisis of 2008/2009, helped the group later to ever new record numbers.
But above all, Zetsche has managed something that only successful brands like Apple manage to do otherwise. He reinvented himself. In recent years, the former tie wearer wore mostly jeans and sneakers, whether he met employees, journalists or the Minister of Transport. Some found this refreshing, others embarrassing. In any case, Zetsche gave the impression that he wanted to know about his last years at Daimler. In addition to the relaunch in its own right, Zetsche also refreshed the designs of the Mercedes vehicles. The brand suddenly looked younger again and hipper.
Zetsche at an event in February 2018
In the years 2015 and 2016, Zetsche would probably have been able to retire in glamor and glory. But with the success of the discipline had fallen in the group, complain critics, production and administration had set fat. Zetsche had no longer the will, with the IG metal invest in order to make the company more efficient.
And then the diesel affair broke out – and Zetsche did not look good.
Negative pressure
At the beginning of 2016, the head of Daimler claimed that his group had – unlike Volkswagen – not cheated. The prosecutor Stuttgart sees it differently, in 2017, the investigators searched several corporate offices. Although Daimler promised to cooperate, but initially took legal against the evaluation. That should have delayed the investigation by months. To date, the automaker believes that he has violated any laws. Daimler even defends itself against the recall of the KBA.
Zetsche also came under pressure because in February 2018 a new major shareholder shook the existing power structure: The Chinese entrepreneur Li Shufu acquired nearly ten percent of Daimler and thus became the largest shareholder of the group. Months earlier, Li had pushed Zetsche to a cooperation between Daimler and Geely – that aspiring Chinese manufacturer, which now wants to shake up the world markets with its electric cars. Li has set up the manufacturer and is pursuing big plans. Zetsche but locked himself, and was surprised by the secret entrance Li Shufus.
This Zetsche should have been a reason why Li Shufu ever bought at Daimler. The billionaire from the Chinese province not only considers Daimler an icon, but Zetsche for one of the largest car managers, say people who know him. Meanwhile, Daimler and Geely have a joint venture for the small car Smart educated. The somewhat bumpy approach of Li Shufu to Daimler and Zetsche seems almost forgotten. The Chinese should even advocate Zetsche’s return to Daimler – as chairman of the supervisory board. Zetsche himself wants that, too.
Daimler will also have to change drastically
Whether it comes to this, however, should depend mainly on the investigations of the prosecutor in the diesel affair. So far, only employees below the board are accused of manipulating diesel engines. If Zetsche remains unencumbered, it should become supervisory board boss after the prescribed two-year cooling off phase. On the panel, many would welcome a Zetsche comeback, although such changes are increasingly controversial. After all, Zetsche, as chief inspector, would have an interest in his successor not questioning the legacy left over too critically.
“It would be premature to commit to Zetsche’s return to the top of the supervisory board today,” says Ingo Speich, Head of Sustainability and Corporate Governance at Deka. Similar to memory, many shareholders think.
Zetsches proponents hold against it, he knows the store now better than anyone else. That should be true. But with the car world, the store in Stuttgart will have to change drastically. “That’s why I’d rather bring a finance or digital expert to the top of the board,” says one shareholder. The time of the “petrol heads”, the gasoline heads, was finally over.
Editor’s note: We have replaced the original heading: “I can not do more at the Daimler” by “saying goodbye to an alpha”. We have failed to reproduce the dialect correctly. Then it would have had to say: “I’ll make it to the Daimler.”