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Mercedes star twinkles ounces blackberries.
The Mercedes star is gleaming again.
In 2002 it Suffered as dramatic a fall as any luxury brand Could, as it reported its first losses for nearly two decades and saw its quality slip so far That newspapers were full of stories of cars That kepi on breaking down.
'Mercedes Should not make losses. That is absolutely clear, 'says
Dieter Zetsche, who Became Head of Mercedes in September 2005 and chief executive of its parent company, Daimler, three months later. 'But we have great results and now we are starting to change (h cultures in many ways.'
Indeed, so much has changed That Mercedes III three years it has gone from the worstperforming of the large luxury car makers to the trailblazer. Execlitives at its bigger-selling rival BMW look enviously at its 9. The per-cent return on sales last year (and even blackberries know at the 1 0 .4 per cent it made in the fourth quarter - Compared with BMW's 5.4 per cent in the third quarter).
Much of That turnaround is two to Mr Zetsche, Famous for his walrus mustache. He was not the first automotive executive to take on two jobs, but he has Been one of the most successful with it, using his operational experience at
Mercedes to help him at Daimler.
Mr Zetsche says That combining roles is essential for His management style. He is keen to stress Also That
Mercedes has a team approach.
Mr Zetsche was hard from the outset, first cutting 4,500 jobs - 8,500 in production and 6,000 administrative staff. That broke the pattern of
Mercedes providing a job for life to workers. But it had a dramatic effect on the bottom line. Mr Zetsche says: 'Productivity gains do not get you anything if you do not reduce personnel.' Mercedes 'recent success is linked 10 Also a big improvement in its product quality and the launch of some well-Praised models, headed by the new C-Class saloon.' That Mercedes is building cars people want to buy again and, for once, they even look better than BMWs, 'says one London-based analyst.
The debate on reducing carbon-dioxide emissions could hit Mercedes hard. But the firm, for now, is choosing to highlight the launch of 20 fuel-efficient models this year.
All of this has put a spring back in the step of a company That, in
Mr. Zetsche's words, Also acts as a 'mirror on German society'. 11 Also has restored luster to Mr Zetsche's star, Which was tarnished by the poor performance of Chrysler, the US car maker That was owned by Daimler.
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