The New Face of DaimlerChrysler

Zetsche and Daimler embarked on their long-standing relationship back in the mid-1970s, when the Turkish-born graduate joined the company after completing his studies in electro-technology at the University of Karlsruhe.

He began his long career in the research and development department, while simultaneously working on his doctorate in engineering at the Technical University in the German town of Padeborn. He completed it in 1982.

Just two years later, he became responsible for the coordination and development of utility vehicles abroad, a charge which led him to different managerial positions in Brazil, Argentina and the United States.

Daring to be different

Even in those early years, he won praise for being bold enough to change the traditional way of doing things within the company, notably for having development and production experts work together in a bid to cut development costs.

It was a coup and one of the reasons for his appointment in 1995 to the management board from where he watched outgoing CEO Jürgen Schrempp merge Mercedes Benz with US automobile manufacturer Chrysler.

News of the fusion was met with great excitement on both sides, but the euphoria was soon replaced with the realization that managing the two companies under one roof was going to be a tricky business.

In essence, the two companies were too similar to really complement one another, and there was concern back at home that the merger would damage Mercedes Benz's dominant market share. With that in mind, Schrempp didn't set about immediately transferring what was widely seen as its superior technology into the engines of Chrysler vehicles.

Chrysler savior

Instead, in November 2000, he transferred Dieter Zetsche, then 47-years-old and head of the company's commercial vehicle business, to shake up Daimler's new partner which was sinking in a sea of its own red ink.

Part of the problem was that many of Chrysler's top executives had jumped ship right after the merger. Some had grown rich on stock awards which were part of the fusion deal, while others couldn't get used to taking orders from the headquarters in Stuttgart. At the time, a marketing expert called James Holden was brought in to save the day. But the mess he inherited was too big to untangle.

So the baton was passed to Dieter Zetsche, who waved it ruthlessly, slashing 26,000 jobs and closing six factories. Unsurprisingly, he quickly became the enemy new boy on the block.

But the Chrysler workers didn't dislike him for long. Wooed by what is often described as his caring attitude and easy manner, they took to him and his ways. Yet beneath his smiling moustache, there is no doubt that Zetsche can play tough and that he is not afraid to do so.

Successful turnaround

In his five years as head of Chrysler, he has proved his worth, and pulled the company up out of the doldrums. In the second quarter of this year, the US company posted an operating profit gain of 4 percent to 544 million euros ($657 million), which was above analysts' estimates of 412 million.

Now, Zetsche has to work his magic back home where Mercedes has been struggling to keep afloat against the strong euro and compensate for losses incurred through its Smart mini-car brand.

He takes over as the new CEO of DaimlerChrysler on January 1, 2006.