DaimlerChrysler boss Juergen Schrempp to step down

DaimlerChrysler boss Juergen Schrempp to step down

DaimlerChrysler chief executive Juergen Schrempp has announced that he will be stepping down as the CEO of the company this year. The company with base in Germany-USA is facing tough competition from the Japanese companies and is failing to attract new customers to their cars. Dieter Zetsche, head of the firm’s Chrysler division, would now replace him.

Juergen was under constant pressure from his peers and was blamed for the lackluster performance of the company. The company has suffered lowering earnings and this resulted in dropping of popularity of their prime brand Mercedes in the market. The legendary car brand has been reported to be failing to meet its quality standards in the recent times.

The investors in the company have also challenged his decisions to expand in the global market with increasing competition hurting the company at home and other existing markets. He is now scheduled to leave at the end of the year and the news resulted in improvement in stock prices of the company!

The share of DaimlerChrysler jumped 8.3% to 39.30 euros in Frankfurt. His replacement Mr. Zetsche has got an impressive reputation in the market as he is credited for the improving business for Chrysler in the US market. His own position would be taken over by Thomas LaSorda.