Mercedes chairman quits over merger plans

The protracted power struggle at Daimler-Benz came to a head yesterday when Helmut Werner, chairman of Mercedes-Benz, its luxury car and trucks unit, resigned in protest over the reshaping of Germany's biggest industrial group.

Mr Werner had unsuccessfully resisted attempts by Juergen Schrempp, Daimler's chief executive, to merge Mercedes within the overall structure of the parent company. Mercedes, which accounts for three-quarters of Daimler's sales and is regarded as the group's cash-cow, will lose its seven-year independence as a result of the restructuring.

In a statement the company said it was Mr Werner's "feeling that the new organisational structure of Daimler-Benz did not offer a scope of responsibility commensurate with his industrial experience".

Other positions for Mr Werner within the Daimler-Benz board had been discussed but none satisfied his expectations, the statement said. Last night it remained unclear when Mr Werner's resignation would take effect. In accordance with German corporate practice no mention of Mr Werner's pay-off was made either.

Mr Werner was reported to be the only board member to vote against the restructuring plan, though Daimler insisted he had offered his "full support and agreement to the new structure" proposed by the parent company's board.

Analysts broadly welcomed the move. "There wasn't room for Werner and Schrempp in the one company. Schrempp had to get clear and undisputed control," said Peter Schmidt of Automotive Industry Data. "Werner is a very capable guy but he ran Mercedes as though it was his own company and an autonomous group and this just is not the case."

Mr Werner's departure, the latest in a series of top-level management changes at Daimler, draws a line under the German industrial conglomerate's ill-fated late-1980s attempt to diversify away from its core car business and build a national defence and aerospace champion on the back of Mercedes' commercial success.

Daimler has been on the road to recovery since reporting a massive DM5.7bn (pounds 2.13bn) loss in 1995 after massive provisions were taken at its DASA defence and aerospace division, which is part of the European Airbus consortium.

Mr Schrempp, who took over from Edzard Reuter two years ago, has cut back unprofitable businesses and exited from Fokker to help Daimler return to profit.

Start your day with The Independent, sign up for daily news emails
Property
house + home
Arts and Entertainment
tvGame of Thrones season 5 ep 4, review - WARNING: contains major spoiliers!
Life and Style
Bats detect and react to wind speed and direction through sensors on their wings
tech
Arts and Entertainment
The Ridiculous Six has been produced by Adam Sandler, who also stars in it
filmNew controversy after nine Native American actors walked off set
Sport
Danny Jones was in the Wales squad for the 2013 World Cup
rugby leagueKeighley Cougars half-back was taken off after just four minutes
Life and Style
The original ZX Spectrum was simple to plug into your TV and get playing on
techThirty years on, the ZX Spectrum is back, after a fashion
News
Tiger Woods and Lindsey Vonn are breaking up after nearly three years together
peopleFormer couple announce separation in posts on their websites
Sport
football
Life and Style
Google celebrates Bartolomeo Cristofori's 360th birthday
techGoogle Doodle to the rescue
Arts and Entertainment
Haunted looks: Matthew Macfadyen and Timothy Spall star in ‘The Enfield Haunting’
tvThe Enfield Haunting, TV review
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living