Daimler AG

Type	Aktiengesellschaft
Traded as	FWB: DAI
Industry	Automotive industry
Predecessor(s)	Daimler-Benz
Founded	1998
Headquarters	Stuttgart, Germany
Area served	Worldwide
Key people	Dieter Zetsche (CEO and Chairman of the management board), Manfred Bischoff (Chairman of the supervisory board)
Products	Automobiles, commercial vehicles (list of brands...)
Revenue	€106.54 billion (2011)[1]
Operating income	€8.755 billion (2011)[1]
Profit	€4.498 billion (2010)[1]
Total assets	€148.132 billion (end 2011)[1]
Total equity	€41.34 billion (end 2011)[1]
Employees	267,274 (end 2011)[1]
Website	daimler.com

 Daimler AG (help·info) (German pronunciation: [ˈdaɪmlɐ aːˈɡeː]; formerly DaimlerChrysler) is a German multinational automotive corporation. Daimler AG is headquartered in Stuttgart, Baden-Württemberg, Germany. By unit sales, it is the thirteenth-largest car manufacturer and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm.

The company also owns major stakes in aerospace group EADS, high-technology and parent company of the Vodafone McLaren Mercedes racing team McLaren Group (which currently is in the process of becoming a fully independent stand-alone corporate entity^[2]), and Japanese truck maker Mitsubishi Fuso Truck and Bus Corporation.

Daimler produces cars and trucks under the brands of Mercedes-Benz, Maybach, Smart, Freightliner and many others.

History[link]

Daimler AG is a German manufacturer of automobiles, motor vehicles, and engines, which dates back more than a century.

An Agreement of Mutual Interest was signed on May 1, 1924 between Benz & Cie (founded 1883) of Karl Benz and Daimler Motoren Gesellschaft (founded 1890) of Gottlieb Daimler and Wilhelm Maybach.

Both companies continued to manufacture their separate automobile and internal combustion engine brands until, on June 28, 1926, when Benz & Cie. and Daimler Motoren Gesellschaft AG formally merged—becoming Daimler-Benz AG—and agreed that thereafter, all of the factories would use the brand name of Mercedes-Benz on their automobiles.

In 2007, when the Chrysler group was sold off to Cerberus Capital Management (see below), the name^{[note 1]} of the parent company was changed to simply "Daimler AG".

Timeline of Daimler AG[link]

Benz & Company, 1883–1926
Daimler Motoren Gesellschaft AG, 1890–1926
Daimler-Benz AG, 1926–1998
DaimlerChrysler AG, 1998–2007
Daimler AG, 2007–present

Merger with Chrysler[link]

In a so-called "Merger Of Equals" Daimler-Benz AG and the American automobile manufacturer Chrysler Corporation merged in 1998 in an exchange of shares,^[3] and formed DaimlerChrysler AG. The terms of the merger allowed Daimler-Benz's non-automotive businesses such as Daimler-Benz InterServices AG (Debis) (created in 1989 to handle data processing, financial and insurance services, and real estate management for the Daimler group) to continue to pursue their respective strategies of expansion. Debis reported revenues of $ 8.6 bn (DM 15.5 bn) in 1997.^[4][5]

Troubled relationship[link]

The merger was contentious with investors launching lawsuits over whether the transaction was the 'merger of equals' that senior management claimed or actually amounted to a Daimler-Benz takeover of Chrysler. A class action investor lawsuit was settled in August 2003 for US$300 million while a suit by billionaire investor activist Kirk Kerkorian was dismissed on April 7, 2005.^[6] The transaction claimed the job of its architect, Chairman Jürgen E. Schrempp, who resigned at the end of 2005 in response to the fall of the company's share price following the transaction. The merger was also the subject of a book Taken for a Ride: How Daimler-Benz Drove Off With Chrysler, (2000) by Bill Vlasic and Bradley A. Stertz.^[7]

Another issue of contention is whether the merger delivered promised synergies and successfully integrated the two businesses. As late as 2002, DaimlerChrysler appeared to run two independent product lines. Later that year, the company launched products that appear to integrate elements from both sides of the company, including the Chrysler Crossfire, which was based on the Mercedes SLK platform and utilized Mercedes's 3.2L V6, and the Dodge Sprinter/Freightliner Sprinter, a re-badged Mercedes-Benz Sprinter van.

Sale of Chrysler[link]

Chrysler had suffered a series of setbacks in recent years, culminating in DaimlerChrysler's agreement to sell the unit to Cerberus Capital Management in May 2007 for US$6 billion. Through most of its history, Chrysler has been the third largest of the "Big 3" U.S. automakers, but in January 2007, DaimlerChrysler, excluding its luxury Mercedes and Maybach lines, also outsold traditionally second place Ford, though behind General Motors and Toyota.

In the middle of the past decade, the merger began to take a turn for the worse. Due to Daimler's reluctance to allow Chrysler to continue development and use quality materials, Chrysler vehicles suffered lower fit and finish quality as well as sub-standard parts being supplied and used in spite of concerns. Although the resulting vehicles produced were still adequate, they were generally not on par with the competition.

Chrysler reported losses of US$1.5 billion in 2006. It then announced plans to lay off 13,000 employees in mid-February 2007, close a major assembly plant and reduce production at other plants in order to restore profitability by 2008.^[8]

DaimlerChrysler had reportedly approached other carmakers and investment groups to sell Chrysler in early 2007. General Motors was reported to be a suitor while Volkswagen, the Renault-Nissan auto alliance, and Hyundai Motor Company had said that they weren't interested in buying the company.

On August 3, 2007, DaimlerChrysler completed the sale of Chrysler Group to Cerberus Capital Management. The original agreement stated that Cerberus would take an 80.1 percent stake in the new company, Chrysler Holding LLC. DaimlerChrysler changed its name to Daimler AG and retained the remaining 19.9% stake in the separated Chrysler.^[9]

The terms saw Daimler pay Cerberus US$650 million to take Chrysler and associated liabilities off its hands. Of the US$7.4 billion purchase price, Cerberus Capital Management will invest US$5 billion in Chrysler Holdings and US$1.05 billion in Chrysler’s financial unit. The de-merged Daimler AG received US$1.35 billion directly from Cerberus but directly invested US$2 billion in Chrysler itself.

Since Chrysler's 2009 bankruptcy filing in the United States, Chrysler has been controlled by Italian automaker Fiat, which unlike Daimler plans to integrate Chrysler's products into the Fiat portfolio, most notably Lancia and Chrysler's namesake brand.

Despite the fact it had been nearly four years after the Daimler/Chrysler split, the fourth-generation Jeep Grand Cherokee shares a platform with the Mercedes-Benz M-Class .^[10]

Renault-Nissan and Daimler Alliance[link]

On April 7, 2010 Renault-Nissan executive, Carlos Ghosn and Dr. Dieter Zetsche announced a partnership between the three companies in a joint press conference.^[11]

Corporate affairs[link]

Management[link]

Dr. Dieter Zetsche has been the Chairman of Daimler and Head of Mercedes-Benz Cars since January 1, 2006 as well as member of Board of Management since 1998. He was former President and CEO of the Chrysler, LLC (previously owned by Daimler AG), he may be best known in the United States as Dr. Z from a Chrysler advertising campaign called "Ask Dr. Z".

Current members of the Board of Management of Daimler AG are:

• Dr. Dieter Zetsche: Chairman of the Board as well as Head of Mercedes-Benz Cars.
• Dr. Wolfgang Bernhard: Head of Mercedes-Benz Cars Procurement and Production.
• Wilfried Porth: Head of Human Resources and Labor Relations.
• Andreas Renschler: Head of Daimler Trucks.
• Bodo Uebber: Head of Finance and Controlling as well as Financial Services.
• Dr. Thomas Weber: Head of Group Research and Mercedes-Benz Cars Development.

Current members of the Supervisory Board of Daimler AG are: Heinrich Flegel, Juergen Hambrecht, Thomas Klebe, Erich Klemm, Arnaud Lagardère, Jürgen Langer, Helmut Lense, Sari Baldauf, William Owens, Ansgar Osseforth, Valter Sanches, Manfred Schneider, Stefan Schwaab, Bernhard Walter, Lynton Wilson, Mark Wössner, Manfred Bischoff, Clemens Börsig and Uwe Werner. Dr Manfred Bischoff serves as the Chairman of the Supervisory Board of Daimler AG and Erich Klemm as Vice-Chairman.^[12]

Shareholder profile[link]

by Ownership^[13]

• Aabar Investments (United Arab Emirates): 9.0%
• Kuwait Investment Authority (Kuwait): 6.9%
• Renault (France): 1.55%
• Nissan (Japan): 1.55%
• Institutional investors: 61.9%
• Private Investors: 19.1%

by Region^[13]

• 28.2% Germany
• 36.9% Europe ex-Germany
• 15.4% United States
• 9.0% United Arab Emirates
• 6.9% Kuwait
• 3.6% Others

Brands[link]

Daimler sells automobiles under the following marques worldwide:

• Mercedes-Benz Cars
  • Maybach
  • Mercedes-Benz
  • Smart
  • Mercedes-AMG

• Daimler Trucks
  • Commercial vehicles
    • Freightliner
    • Mercedes-Benz (truck group)
    • Mitsubishi Fuso
    • Thomas Built Buses
    • Sterling Trucks - operations winded down in 2010, but will continue to support authorized dealers and vehicle owners
    • Western Star
    • BharatBenz
  • Components
    • Alliance Truck Parts
    • Detroit Diesel
    • Mercedes-Benz
    • Mitsubishi Fuso

• Daimler Buses
  • Mercedes-Benz buses
  • Orion Bus Industries - operations winded down in 2012, expected to close in 2013
  • Setra

• Mercedes-Benz Vans
  • Mercedes-Benz (vans group)

• Daimler Financial Services
  • Mercedes-Benz Bank
  • Mercedes-Benz Financial
  • Daimler Truck Financial

• Others
  • Mercedes AMG High Performance Powertrains (Builds engines for Formula 1 Racing)

Holdings[link]

Daimler currently holds interests in the following companies:

• 85.0% Mitsubishi Fuso Truck and Bus Corporation of Japan
• 50.1% Automotive Fuel Cell Cooperation of Canada
• 22.4% European Aeronautic Defence and Space Company (EADS) - the parent company of Airbus of Europe
• 50% Engine Holding Rolls Royce holds the other 50%
• 49% Tognum of Germany due to the 50% share in Engine Holding, which holds 98% of the Tognum Shares.
• 11% KAMAZ of Russia
• 7.8% Tesla Motors of United States

At the end of 2011 McLaren Group completely bought back the stocks from Daimler.

Partners[link]

Daimler has built 1,000 all-electric versions of its Smart Fortwo using Tesla's battery technology.^[14] Daimler works with China's Beiqi Foton (a subsidiary of BAIC) to build Auman trucks,^[15] and with BYD to develop EV technology.^[16]

Alternative propulsion[link]

Biofuel research[link]

Daimler AG is involved in a joint project with Archer Daniels Midland Company and Bayer CropScience to develop the semi-evergreen shrub jatropha curcas as a biofuel.^[17]

Transport electrification[link]

Carmaker Daimler AG and the utility company RWE AG were set in 2009 to begin a joint electric car and charging station test project in the German capital, Berlin, called "E-Mobility Berlin".^[18][19]

Mercedes-Benz is launching its first passenger car model equipped with a hybrid drive system in summer 2009, the Mercedes-Benz S 400 HYBRID.^[19]

Daimler Trucks is the world market leader in hybrid systems. With its “Shaping Future Transportation” initiative, Daimler is pursuing hybrid propulstion for buses as well. The Mitsubishi Fuso “Aero Star Eco Hybrid” is now setting new standards in practical trials in Japan.^[20]

Formula 1[link]

On November 16, 2009 Daimler purchased a 75.1% stake in Brawn GP. The company was rebranded as Mercedes GP. Ross Brawn will remain team principal and the team will be based in Brackley, UK. However the purchase of Brawn meant that Daimler back its stake in McLaren in stages that ended in 2011. Mercedes will continue to provide sponsorship and engines to McLaren until 2015. Mercedes owns 45.1% of the new company with 30% for Aabar Investments and 24.9% for Ross Brawn. The racing team has signed the former champion Michael Schumacher.

Bribery and corruption[link]

On April 1, 2010, Daimler AG's German and Russian subsidiaries each plead guilty to two counts of bribery charges brought by the U.S. Justice Department and the U.S. Securities and Exchange Commission. Daimler itself will pay US$185 million as a settlement, but the company and its Chinese subsidiary remain subject to a two-year deferred prosecution agreement which requires further cooperation with regulators, adherence to internal controls and meeting other terms before they are required to return to the court room. Daimler will face harsher penalties if the company fails to meet the terms of the agreement during the two-year period.

Additionally, Louis J. Freeh, a former director of the Federal Bureau of Investigation, will serve as an independent monitor to oversee Daimler’s compliance with anti-bribery laws.

U.S. prosecutors accused key executives of Daimler, Daimler subsidiaries, and Daimler affiliates of illegally showering foreign officials with money and gifts between 1998 and 2008 to secure government contracts around the world. The investigation for the case revealed that Daimler improperly paid some $56 million in bribes related to more than 200 transactions in at least 22 countries (including China, Russia, Turkey, Hungary, Greece, Latvia, Serbia and Montenegro, Egypt and Nigeria, among other places) that, in return, awarded the company $1.9 billion in revenue and at least $91.4 million in illegal profits.^[21]

The SEC case was sparked in 2004 after David Bazzetta, a former auditor at then DaimlerChrysler Corp, filed a whistleblower complaint after he was fired for raising questions about bank accounts controlled by Mercedes-Benz units in South America.^[22] Bazzetta alleged that he learned in a July 2001 corporate audit executive committee meeting in Stuttgart that business units "continued to maintain secret bank accounts to bribe foreign government officials," though the company knew the practice violated U.S. laws.

In another attempt to silence Bazzetta, Daimler later offered to settle his termination of employment suit out of court and he eventually accepted a settlement. But Daimler's strategy with Bazzetta proved to be a failure as the U.S. criminal investigation for violating anti-bribery laws was already underway in what is one of the most wide-ranging cases brought against a foreign corporation.

According to the charges, the bribes were frequently made by over-invoicing customers and paying the excess back to top government officials or their proxies. The bribes also took the form of luxury European vacations, armored Mercedes vehicles for high-ranking government officials and a birthday gift to the then notorious dictator of Turkmenistan, Turkmenbashi (Saparmurat Niyazov), including a golden box and 10,000 copies of his personal manifesto, Ruhnama, translated into German. ^[23][24]

Investigators also found that the firm violated the terms of the United Nations' Oil-for-Food Programme with Iraq by giving kickbacks worth 10% of the contract values to officials within the Iraqi government, then led by Saddam Hussein. The SEC said the company made more than $4 million in profit from the sale of vehicles and spare parts in the corrupt Oil-for-Food deals.^[21]

U.S. prosecutors further alleged that some bribes were paid through shell companies based in the U.S. "In some cases Daimler wired these improper payments to U.S. bank accounts or to the foreign bank accounts of U.S. shell companies in order to transmit the bribe," the court papers said.^[25]

Prosecutors said that Daimler engaged in a "long-standing practice" of paying bribes, due in part to a corporate culture that encouraged the practice.

"Using offshore bank accounts, third-party agents and deceptive pricing practices, these companies [Daimler AG, its subsidiaries and affiliates] saw foreign bribery as a way of doing business," said Mythili Raman, a principal deputy in the Justice Department’s criminal division.^[26]

"It is no exaggeration to describe corruption and bribe-paying at Daimler as a standard business practice," Robert Khuzami, director of the SEC's enforcement division, said in a statement.^[27]

"We have learned a lot from past experience," Dieter Zetsche, chairman of Daimler's board, said in a statement.

As per the agreement with prosecutors, the two Daimler subsidiaries admitted to knowingly violating the Foreign Corrupt Practices Act, which bars companies and their officials from paying bribes to foreign officials to win business.^[28] The Foreign Corrupt Practices Act applies to any company that lists its shares on U.S. stock exchanges. Daimler AG was listed with the symbol "DAI" on the NYSE, giving the Justice Department jurisdiction over the German car maker's payments in countries around the globe.

Judge Richard J. Leon of United States District Court in Washington, D.C., approved the plea agreement and settlement, calling it a "just resolution."

The primary case is USA v. Daimler AG, United States District Court for the District of Columbia, No. 10-00063.^[29]

Notes[link]

1. ^ Press release by Tata Group Jaguar now shares the rights to the Daimler name with Daimler AG, the German car manufacturer created when DaimlerChrysler was split up. Jaguar agreed terms in 2007 which allow the German company to use the Daimler brand as the title of a trading company, a trade name or a corporate name — rights that it did not hold previously. The renegotiated terms did not affect Jaguar's rights to build Daimler cars. A spokesman for Jaguar said: “The extended usage agreement does not affect either company's existing right to use the Daimler name for a product.” — The Times 28 July 2008.

References[link]

External links[link]

Wikimedia Commons has media related to: Daimler AG

• Official website

v t e DAX companies of Germany Adidas Allianz BASF Bayer Beiersdorf BMW Commerzbank Daimler Deutsche Bank Deutsche Börse Deutsche Post Deutsche Telekom E.ON Fresenius Fresenius Medical Care HeidelbergCement Henkel Infineon Technologies K+S Linde Lufthansa MAN Merck METRO Munich Re RWE SAP Siemens ThyssenKrupp Volkswagen

v t e Chrysler Marques Current Chrysler Dodge Jeep Ram Defunct AMC (1966–1988) Commer (1905–1979) Barreiros (1959–1978) DeSoto (1928–1961) Eagle (1988–1998) Fargo (1920–1972) Hillman (1907–1976) Humber (1898–1975) Imperial (1955–1975, 1981–1983) Karrier (1908–1977) Plymouth (1928–2001) Singer (1905–1970) Simca (1934–1977) Sunbeam (1901–1976) Valiant (1960–1966) Divisions and subsidiaries Current Chrysler Australia Chrysler Canada Dodge Jeep Mopar Ram Trucks Street and Racing Technology (SRT) Road Track (R/T) Defunct Chrysler-Plymouth (1928–2001) American Motors Corporation (1954–1988) Chrysler Australia (1951–1981) Chrysler Europe (1967–1981) Chrysler UK (1970–1981) Envi (2007–2009) Former EUROSTAR Global Electric Motorcars Chrysler First Financial Services Corporation Joint ventures and alliances Current United States Council for Automotive Research Defunct Diamond-Star Motors DaimlerChrysler-Mitsubishi alliance GEMA People Walter Chrysler Lee Iacocca C. Robert Kidder Thomas W. LaSorda Sergio Marchionne Louis Rhodes Places Chrysler Building Chrysler Headquarters and Technology Center Factories Proving grounds Products Engines (Hemi, Pentastar) Platforms Transmissions Vehicles Other Big Three Cerberus Capital Management Chrysler Classic Racing Daimler-Chrysler (1998–2007) Fiat SpA History (Chapter 11 reorganization) Category Commons

Dieter Zetsche
Dieter Zetsche at IAA 2009
Born	(1953-05-05) May 5, 1953 (age 59) Istanbul, Turkey
Residence	Stuttgart
Nationality	German
Ethnicity	German
Alma mater	University of Karlsruhe, University of Paderborn
Occupation	Engineer, Businessman Chairman of Daimler AG (2006-)
Predecessor	Jürgen E. Schrempp (as Chairman of DaimlerChrysler AG)
Spouse	Gisele Zetsche (m. 1982)
Children	3; 1 daughter
Parents	Herbert Zetsche

Dieter Zetsche (born on May 5, 1953 in Istanbul, Turkey) is a German businessman and the Chairman of Daimler AG and Head of Mercedes-Benz Cars since 2006 as well as member of the company's Board of Management since 1998.

He was born while his father, Herbert Zetsche, a civil engineer, was temporarily in Turkey for a dam construction project. The family returned to Germany in 1956. Dieter Zetsche attended school in Oberursel (near Frankfurt am Main) and studied electrical engineering from 1971 to 1976 at the University of Karlsruhe; he graduated as an engineer.

He joined Daimler-Benz in 1976, working in the research department. In 1981, he became Assistant Development Manager at the Vehicles business unit. He completed his doctorate in engineering in 1982 at the University of Paderborn.

He became a member of the DaimlerChrysler's Board of Management in 1998 and served the President/CEO of Chrysler Group from mid of 2000 to December 31, 2005, where he was credited with a turnaround of DCX's American operations. Since January 1, 2006, he succeeded Jürgen Schrempp as Chairman of DaimlerChrysler (now Daimler AG), being succeeded in the position of Chrysler Group CEO by Thomas W. LaSorda.

He was the main influence behind the demerger of Daimler and Chrysler in 2007, which ended in the newly formed Daimler AG.

Dieter Zetsche is credited with bringing significant core changes to the Mercedes-Benz company in an effort to turn around a decade long downward spiral in product quality and customer satisfaction. He was named in Time Magazine's 2006's list of 100 most influential people.

Ask Dr. Z campaign[link]

Chrysler headquarters advertising the website "AskDrZ.com"

On June 30, 2006, Chrysler Group announced the Employee Pricing Plus program, which featured Dieter Zetsche as Dr. Z, the DaimlerChrysler spokesman for a series of United States and Canadian television commercials,^[1][2] also animated in cartoon format on the company's Ask Dr. Z website, which began on July 1.

The "Ask Dr. Z" campaign included television, radio, print, online,^[3] in-dealership and customer relationship marketing media components and aggressive marketing tactics (mobile billboards, aerial banners, street teams), as well as targeting the NASCAR fan community. In the "Ask Dr. Z" ad campaign he provides answers to customers' questions and exits by saying "Auf Wiedersehen" (German for "See you later").

The ad campaign emphasized the consumer benefits of the best of American and German engineering and design built into every Chrysler, Jeep and Dodge vehicle. One included Zetsche riding in a Jeep Liberty crossing a pile of logs, another showed him at the trunk of a Dodge Caravan minivan heading a soccer ball, and the last showed him at the wheel of a Chrysler Pacifica when it undergoes a crash test where he emerges from the wreckage unscathed.^{[4] [5]}

As a response of shrinking sales, the Employee Pricing Plus program was extended through the end of August, 3 new TV ads, which did not feature Dr. Z, were added to the August campaign.^[6] After 3 months however DaimlerChrysler hurriedly withdrew the Dr. Z campaign due to a significant loss in market-share. However, some of the Dr. Z ads can still be seen in Canadian television. In later broadcasts, the tagline in Dr. Z TV ads was changed to 'See the best in German and North American design in your Dodge and Chrysler dealer.'

The campaign was criticized for having a wrong guy to do funny ads.^[7] CNW Marketing Research poll showed most people thought Dr. Z was a fictional character, did not notice the employee discount offer in the ads and radio commercial listeners had a difficulty understanding his German accent.^{[4] [8]}

Awards[link]

Dieter Zetsche was awarded as "Entrepreneur of the year" in 2008 from the German media.^[9]

References[link]

1. ^ Clark, Andrew. "Svengali-like Dr Z - the unlikely star of Daimler's TV ad campaign in US. " The Guardian. Accessed on 11 August 2006.
2. ^ Chrysler Group Turns Up the Heat with Employee Pricing Plus for All Customers
3. ^ "DaimlerChrysler AskDrZ.com "The Doctor Is In" 300×250 w/ Dieter Zetsche". adverlicio.us. http://adverlicio.us/daimlerchrysler-askdrz-com-doctor-300x250/. Retrieved 2011-09-25. 
4. ^ ^{a b} [1]
5. ^ [2]
6. ^ Why, Dr. Z, Why? Chrysler's ad campaign flops despite employee pricing for all
7. ^ The Trouble With Dr. Z
8. ^ Is Chrysler's "Dr. Z" campaign a flop?
9. ^ FINANZEN-Nacht 2008: Dieter Zetsche ist Unternehmer des Jahres

External links[link]

• Dr. Dieter Zetsche at Daimler
• Appearances on C-SPAN
• Dieter Zetsche at the Internet Movie Database
• Works by or about Dieter Zetsche in libraries (WorldCat catalog)
• Dieter Zetsche collected news and commentary at The New York Times