Daimler AG: OFFICIAL

[coolraoul]

DaimlerChrysler Changes Name to Daimler

By DAVID McHUGH,
AP
Posted: 2007-10-04 15:56:22
BERLIN (AP) - DaimlerChrysler AG shareholders voted overwhelmingly Thursday to change their company's name to Daimler AG to reflect the sale of its U.S. Chrysler division - marking what CEO Dieter Zetsche portrayed as a new start after a tumultuous nine years together.

The vote was 98.8 percent in favor at a special shareholders meeting in Berlin.

The change is effective immediately, though it will take until early next year to change signs, stationery and 170,000 e-mail addresses.

Zetsche told 4,700 shareholders at the ICC conference center in Berlin that the company could not go back to its pre-Chrysler name Daimler-Benz because it had changed too much by adding new divisions and models.

"The group name Daimler clearly indicates that we are writing a new chapter in our history, while at the same time continuing our tradition as the inventor of the automobile," Zetsche told 4,700 shareholders gathered in Berlin to vote on the name change, a formality expected to pass easily.

The Stuttgart-based company recently sold 80.1 percent of Chrysler to private equity firm Cerberus Capital Management.

Daimler-Benz and U.S. Chrysler Corp. linked up in a 1998 deal described as a "marriage made in heaven" by then-CEO Juergen Schrempp, but up-and-down earnings and repeated cost-cutting had long soured many investors on the effort to create a global auto giant.

Zetsche said the company would now be free to focus on "what we do best:" luxury cars; commercial vehicles such as trucks, buses and vans; and financial services.

"Our earnings will now be more sustainable, as we will no longer be so strongly dependent on the volatile North American volume market," Zetsche said.

"We are not striving to become the world's largest automotive company. Instead, our aim is to be one of the most admired and respected on a permanent basis."

The name change to Daimler AG will define the company as a group in its dealings with government and financial markets, the company said, creating clear separation of group identity from its product brands such as Mercedes.

The change overcame a plea by Heidemarie Hirsch, a great-grandniece of automotive pioneer Karl Benz, who argued for restoring her ancestor's name by choosing Daimler-Benz or simply Benz AG.

"Give Karl Benz his due place in the front row," Hirsch said. "Give the company back its personality, its character, its face."

Zetsche stressed that the company was not forgetting Benz, whose name would remain in the company's flagship luxury brand, Mercedes-Benz.

Karl Benz (1844-1929) built an three-wheeled internal combustion automobile in Mannheim in 1885 and patented it in 1886. Working separately, Gottlieb Daimler (1834-1900) and partner Wilhelm Maybach built a compact engine and put in a motorcycle in 1885 and in a coach in 1886.

The companies founded by Benz and Daimler merged in 1926 to former Daimler-Benz AG.

DaimlerChrysler had to buy rights to the Daimler name from Ford Motor Co. for $20 million because Gottlieb Daimler had sold the rights to his name in Great Britain. Ford's Jaguar luxury brand used the Daimler name on some models.

The German company changed its share symbol on the Frankfurt and New York exchanges in August from DCX to DAI, but the process of changing the company's name will not be completed before spring 2008.

Too bad I preferred Daimler-Benz AG...
At least now Chrysler disappeared from the name. This chapter is now closed and that is very good!

 

[Tarek]

And the King is back,everybody bow down..and stay down

 

[siko]

"Daimler AG" for corporate name and "Mercedes-Benz Cars" for the car division sounds good to me.

Eveyone should be happy, since all names are used.

And the King is back,everybody bow down..and stay down

Yes, we all saw The Return of King movie... didn't know you were such as huge LotR fan.

 

[Tarek]

Yes, we all saw The Return of King movie... didn't know you were such as huge LotR fan.

Lol,yeah i'm a big fan

 

[Merc1]

I kinda wish he would have laid out Mercedes' model plans like BMW did in their recent press conference. Let me see, GLK, CLS facelift, SLK facelift, SL facelift, ML facelift, new E-Class, SLC/SL Black Series, and in a few years, S-Class/CL facelift, GL facelift, S-Class convertible (ODC), then...?????

M

 

[coolraoul]

OFFICIAL PRESS RELEASE


Extraordinary Shareholders' Meeting to Decide on Renaming as Daimler AG

• Approximately 6,000 shareholders expected in Berlin
• Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and Head of Mercedes Car Group: "The strength of our brands is one of our most valuable assets."

Berlin, Oct 04, 2007
The Board of Management and the Supervisory Board of DaimlerChrysler AG will today recommend to the Extraordinary Shareholders' Meeting that the name of the Group be changed to Daimler AG following the disposal of 80.1% of its stake in Chrysler Holding LLC.

According to the text of his speech, Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and Head of Mercedes Car Group, will explain to the approximately 6,000 shareholders the rationale behind the decision to rename the company. According to Zetsche, a clear distinction should be made between the corporate brand Daimler and the Group's various product brands. Wherever the focus is on the Group as a whole, the company wants to present itself consistently as Daimler, for example in its dealings with political decision-makers and the general public, in the financial markets, in its relations with the business media, and as an employer. The company also aims to present itself as Daimler in all areas where several brands are involved, thus providing an umbrella designation for all of the individual product brands.

"The strength of our brands is one of our most valuable assets," Zetsche says in his speech. "Clearly, one of our central tasks is to maintain and enhance that strength." Mercedes-Benz, for example, has the richest tradition of any automobile brand. It's also the world's most valuable premium automobile brand, and a recent study has revealed that it's still the most coveted automobile brand in Germany. According to Zetsche, "No other automobile brand shines as brightly as the Mercedes star."

For more than 80 years, Mercedes-Benz has been the company's business card in its dealings with customers all over the world. In the future, the brand with the star will continue to take center stage at the Group. As a result, "the proud name of Benz will not only remain prominent, it will have significantly higher visibility," according to the text of Zetsche's speech, in which he refers to the many demands for the retention of the name "Benz" in the company name that were expressed before the Extraordinary Shareholders' Meeting.

Wherever the company is dealing directly with customers, and in areas where the focus is primarily on products of a single brand, the corresponding brand name will be used. The product brands Mercedes-Benz, Maybach, smart, AMG, Freightliner, Sterling, Western Star, Detroit Diesel, Setra, Thomas Built Buses, Orion, and Mitsubishi Fuso will serve as the company's “business cards” to the customers.

Zetsche points out that this clear distinction between the corporate brand and the product brands will position all of the brands more clearly and make them even stronger. That's a key factor in market competition, especially for premium automakers.

In the future, this distinction will also be reflected in the names of the divisions. The Truck Group with its five brands will become "Daimler Trucks," the bus brands will operate under the name "Daimler Buses," and Financial Services will be renamed "Daimler Financial Services." In line with the emphasis on products, the Mercedes Car Group will become "Mercedes-Benz Cars" in the future, while the van unit will be called "Mercedes-Benz Vans." DaimlerChrysler Bank will be renamed Mercedes-Benz Bank.

The name change to "Daimler" should also express the fact that the company has changed greatly in the past ten years. The total annual revenues of the Mercedes Car Group and the Truck Group today are double what they were ten years ago. The Mercedes Car Group now has seven additional model series and three new brands: Maybach, smart, and AMG. The Truck Group has incorporated Fuso, Detroit Diesel, and Western Star. Financial Services' current portfolio is two and a half times as big as it was in 1997. The Group as a whole is much more international in scope than it was ten years ago.

"The Group name 'Daimler' clearly indicates that we are writing a new chapter of our history, while at the same time continuing our tradition as the inventor of the automobile. And this rich heritage will remain an essential part of our identity — of our DNA, so to speak," he continues. At the same time, the company is also looking forward: "We're combining our proud origins and a bright future — honoring our long tradition and harnessing our pioneering spirit. The name Daimler is an expression of this dual identity."

Functional strategy

According to the text of his speech, Zetsche emphasizes that high performance is the company's common goal, which extends across all divisions and functional units. However, the definition of high performance varies according to markets, brands, and customer demands.

"With regard to passenger cars, we are clearly committed to providing premium products; as far as our trucks are concerned, we are striving to achieve outstanding levels of safety and reliability, while also maximizing economy," Zetsche explains. With respect to services, the aim is to provide innovative and customized total solutions.

However, the overall objective, or the glue that holds everything together, is always the same: "We want to be the best in those areas that are most important to our customers in specific markets", Zetsche states at the extraordinary Shareholders’ Meeting.

The strategies at the functional units are also geared toward the Group as a whole. The financial strategy is designed to continually improve the capital structure and optimize methods for obtaining the necessary funds to invest in the divisions in order to support the Group's profitable growth on a sustained basis.

The company's human resources strategy aims to ensure that it becomes a preferred employer. According to Zetsche, this means continuing to improve employees' working conditions, including measures that enable them to meet more effectively their work and family obligations; offering high-potential employees the best possible career opportunities; and becoming "the first choice for the top people in our industry."

The overall research and development strategy is meant to ensure that the Group will play a leading role in technologies that set it apart from its competitors.
A number of long-term financial goals have been defined for the individual divisions. The Mercedes Car Group has targeted an average return on sales of 10% by 2010 at the latest. The Truck Group is aiming for a sustained return on sales of at least 7% and a return on net assets of 30% over the entire business cycle. The bus business already is the benchmark when it comes to profitability, and it aims to further strengthen this position in the long term. The company plans to expand its strong market position in the vans sector, and Financial Services is aiming to post a return on equity of at least 14%.

To achieve these aims, the company plans to utilize four levers:

1. Operational excellence:
- Consolidating the efficiency gains the company has achieved and making further improvements
- Instilling a high-performance culture throughout the Group, at every level and in every employee

2. Growth in the Group's core business:
- Using compelling products and strong brands to inspire customers in the traditional segments
- Exploiting new regional market opportunities

3. Expansion of the service portfolio:
- Expanding the range of customer-focused services up and down the entire value chain

4. Growth through the exploitation of new business potential:
- Developing pioneering solutions for sustainable mobility and staking a strong claim to industry leadership in the areas of safety and environmental protection
- Systematically investing in future-oriented technologies

"To sum up, we are not striving to become the world's largest automotive company. Instead, our aim is to be one of the most respected and admired on a permanent basis," concludes Zetsche, according to the text of his speech.

Copyright © 2007, DaimlerChrysler AG



I still would have prefered the good old Daimler-Benz. It however would have meant Mercedes recognize the failure with Chrysler. The new name "Daimler" means "a new chapter".

I'm so happy they get rid of Chrysler... Now they are fully German, much more focused on the premium market, and not linked with this ridiculous Chrysler any more. All crap American cars, horribly made ans unreliable, with the exception of the superb 300C/Magnum though.

Daimler is back... At least!

 

[bmer]

I'm so happy they get rid of Chrysler... Now they are fully German, much more focused on the premium market, and not linked with this ridiculous Chrysler any more.

What about the about 19,9 % share of Chrysler that they still own?



BTW "Chrysler" has 8 letters and 19,9 % out of that is roughly 2 (1,592). So logically they should have chosen the name "DaimlerCh AG".

 

[coolraoul]

They also have 15% of EADS/Airbus and it does not make them a planemaker mamed "Daimlairbus"....

 

[bmer]

They also have 15% of EADS/Airbus and it does not make them a planemaker mamed "Daimlairbus"....

Nope but you said they weren't linked with Chrysler anymore which isn't the case.

 

[coolraoul]

Yeah I said that for the name. The name Chrysler does not appear anywhere now: Daimler, Mercedes-Benz, ... Nowhere Chrysler. That's what I meant.
The name "Daimler" can shine in full glory without be polluting by the "Chrysler" name, with its bad reputation.

 

[bmer]

Yeah I said that for the name. The name Chrysler does not appear anywhere now: Daimler, Mercedes-Benz, ... Nowhere Chrysler. That's what I meant.
The name "Daimler" can shine in full glory without be polluting by the "Chrysler" name, with its bad reputation.

With that I can agree with you.