Daimler-Benz Taps Schrempp as Chairman
BERLIN — Daimler-Benz on Wednesday named Juergen Schrempp to succeed Edzard Reuter as chairman when Reuter, 66, steps down next May, ending months of speculation about who will lead Europe’s largest industrial group into the 21st Century.
Schrempp, 49, widely seen as the front-runner for the chairman’s job, has until now been chairman of Daimler-Benz’s aerospace and defense subsidiary, Deutsche Aerospace, or DASA.
Schrempp first joined Daimler-Benz as a mechanic trainee for Mercedes cars. He worked his way through the ranks, ultimately making himself a favorite of Reuter by taking the unwieldy DASA through a tough restructuring program. Analysts view him as an effective “doer†who will keep Daimler-Benz much on the track Reuter established for the company since becoming chairman in 1987.
Reuter, who became chairman in 1987, made his mark at Daimler-Benz by taking the company through an aggressive diversification program, turning what had been a successful but conservative maker of Mercedes cars into a conglomerate with interests in automobiles, consumer appliances, aircraft, military hardware and communications technology.
Although many applauded Reuter’s vision when the expansion began, critics have increasingly complained that his diversification has cost too much--more than $4.7 billion--and that his acquisitions have not always fit well.
Daimler-Benz experienced its first loss in postwar history under Reuter, losing $1.16 billion in 1993, as measured by U.S. accounting rules. (Much of the loss was attributable to large, one-time costs associated with cutting redundant jobs.)
