Zetsche Determined to Finish Merger

Dieter Zetsche, DaimlerChrysler's chief executive officer, seems bound and determined to finish off the job started by Juergen Schrempp and turn the German-American automaker into one big car company.

His plan to revamp the company's management team calls for concentrating all of the company's far-flung research and development activities under the Mercedes-Benz Car Group. Thus, the Chrysler Group's vestigial advanced research and development unit will now be absorbed in the new Mercedes unit. More significantly, perhaps, the extensive research capability that DaimlerChrysler has maintained outside the car groups also will be absorbed into Mercedes-Benz.

Zetsche said cooperation between the Mercedes Car Group and the Chrysler Group will become markedly closer. However, he stressed that he isn't about to sacrifice Mercedes' hard-won reputation as one of the world's top luxury brands in an effort to reduce costs. "A clear priority within this effort will continue to further strengthen brand identity," he said.

The DaimlerChrysler CEO also said the old idea of platform-sharing is already fading in the industry. The new model is more like Legos, where certain modules or building blocks can be shared, he said. If the block doesn't change the perception of the vehicle, it might be found on both Chrysler and Mercedes vehicles. But if the module means something to the customer then it will be differentiated, Zetsche said. "We want to turn scale into profitability," he said. "You can expect to see more examples of collaboration, especially when we can transfer knowledge between the groups, such as when the Chrysler Group tapped the rear-wheel-drive expertise of Mercedes-Benz in the development of the Chrysler 300C," he said.

Zetsche also stressed the flexible development system should allow DaimlerChrysler to produce more unique vehicles.

In addition, instead of just having departments devoted to certain kinds of research, DaimlerChrysler plans to use "project houses," Zetsche suggested.

"You will also see more examples of clearly defined 'project houses' where engineers from different divisions work together for the benefit of the whole company," he said. The joint venture in Troy, Mich., that is working on hybrids is a good example that the collaborative model can work, he said. In Troy, Mercedes-Benz and Chrysler engineers are working side-by-side with General Motors and BMW specialists to develop hybrids. A second example inside Chrysler is the collaboration on the world's cleanest diesel technology, called BlueTec; that joint effort is being undertaken by Commercial Vehicles, Mercedes Car Group, and Chrysler Group. More project houses are in the works, he added.