Zetsche may get extra Merc role

DaimlerChrysler chief executive designate Dieter Zetsche may head the company's luxury division Mercedes Car Group, German newspapers…

DaimlerChrysler chief executive designate Dieter Zetsche may head the company's luxury division Mercedes Car Group, German newspapers report.

Speculation over Zetsche's additional role came following reports that the unit's current head, Eckhard Cordes, had asked to be released from his contract because he felt he no longer had the board's full confidence.

Business monthly Manager Magazin cited unidentified sources this week as saying the supervisory board had asked for time to consider the request by Cordes, who was passed over for the job of replacing Jürgen Schrempp as chief executive.

The Frankfurter Allgemeine Sonntagszeitung newspaper, quoting sources close to the company's supervisory board, said Zetsche should head the unit for one or two years until a new manager is found.

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German trade newspaper Automobilwoche reported the same. A DaimlerChrysler spokesman declined to comment.

DaimlerChrysler stunned the automotive world last Thursday by announcing Schrempp would leave at year's end after 44 years at the group, where he has been chief executive since 1995, and years before his contract expires.

Schrempp, whom disgruntled investors accused at their annual meeting of poor performance and shoddy leadership, will hand over the reins of the world's fifth-biggest car-maker to fellow German Zetsche, now head of resurgent US arm Chrysler.

Mercedes was a cash cow for the company but recently it has grappled with the strong euro, model changeovers, spending to fix quality problems and hefty losses at minicar brand Smart.