Zetsche to try Chrysler magic at Mercedes

If there is one thing to be learned from the eviction of Juergen Schrempp from the top spot at Daimler-Chrysler, its the priority: the Chrysler unit can be in shambles, as it was for most of King Juergen's reign, with no peril to the boss, but just a little tarnish on the Mercedes unit will bring the Grim Reaper into action. Some say, however, that Schrempp's eviction was long overdue, despite record sales at Mercedes in the early 2000s. And, remaining unanswered, is what Zetsche did right at Chrysler and how it applies to Mercedes.

Schrempp's strategy at Mercedes was simple, the same one that made Cadillac a high volume brand: reduce relative content at a faster rate than the decline of the relative perception of the brand. The ML Clbutt is an obvious culprit, less powerful and smaller than its Asian compebreastion, and relegated to being a toy SUV amusingly bejeweled with the Mercedes tri star. The other evident problem is the C Clbutt, a European taxi foisted off on Americans who learned the truth when they happened to park next to a Civic.

But the biggest detriment is product quality. Mercedes has done increasingly poorly in both initial quality ratings and longer term quality measurements. And Zetsche has no experience with this, as neither was a significant factor at Chrysler during his leadership of the unit.

Perhaps Zetsche will lead Mercedes down the truck road. That is what he did at the Chrysler unit, which no builds almost no cars. The PT Cruiser is legally a minivan, the Pacifica and Magnum SUVs, and the Neon replacment will be an SUV. It would seem this strategy is inappropriate for Mercedes; it, in fact, remains to be seen if, long term, it is appropriate for the Chrysler unit.

Somehow, with existing lines, Zetsche will have to, first of all, improve product quality. One thing is certain: it will be a long time before he can bring in Chrysler pitch man Lee Iacocca to tag line Mercedes commercials with "If you can find a better car, buy it".