Bernhard to Replace Renschler as Daimler Global Truck Chief

This story appears in the Feb. 25 print edition of Transport Topics.

Daimler AG last week shook up the top management of its global truck and car manufacturing units, moving Andreas Renschler to take over auto production from Wolfgang Bernhard and switching Bernhard to the truck unit.

The appointments are effective April 1 and represent the first change in the leadership of Daimler Trucks North America since Renschler took over the company’s truck business — the world’s largest — in 2004. Renschler will oversee production and purchasing at the Mercedes-Benz Cars & Vans businesses.

From 2004 to 2012, Class 8 sales of DTNA’s Freightliner nameplate have climbed 7.3% at a time when sales of others’ trucks have declined 9%.

DTNA led the market last year, gaining 2.6 percentage points in market share to 34.2% and raising U.S. sales by 23%.

The announcement comes two weeks after Daimler reported 2012 earnings with a decline of nearly 20% in profits at the Mercedes-Benz Cars unit and a more modest drop of 9% in earnings, excluding interest and taxes, at Daimler Trucks.

The announcement seemed to surprise DTNA officials, who were conducting a press event in Mexico. The move comes just weeks before the Mid-America Trucking Show, the largest in North America, at which Renschler was scheduled to host several customer and press meetings.

It was unknown at press time if Renschler would still travel to the show in Louisville in March.

“Wolfgang Bernhard and Andreas Renschler are two highly experienced members of Daimler’s board of management,” Manfred Bischoff, chairman of Daimler’s supervisory board, said in a statement. “With this change, they will both be able to utilize their management know-how from their previous responsibilities within in their new functions, thus expanding their own expertise in all automobile areas.”

Bernhard is moving to Daimler Trucks after three years in his Mercedes post. Most of Bernhard’s experience has come on the automobile and light-truck side, including the Chrysler business in the United States that Daimler sold. He first joined Daimler in 1994.

“There’s an unwritten law at Daimler that the CEO has to prove himself at the truck division,” Roman Mathyssek, an analyst at IHS Global Insight, told Bloomberg News. “The chances that Bernhard could succeed [Dieter] Zetsche as CEO have further increased with this announcement.”

Renschler’s appointment was announced in mid-2004. Previously, he headed Daimler’s Smartcar business as part of a company career that began in 1988. Renschler also ran Mercedes’ U.S. car operations in Alabama.

Renschler also led the unit while it opened a new plant in Saltillo, Mexico, and discontinued the Sterling nameplate.

The moves mean that Martin Daum, president of Daimler Trucks North America, will report to Bernhard. Daimler officials in the United States didn’t respond to requests for comment about the effect of last week’s changes on the North American market.

Last year, Daimler Trucks’ profit of $2.2 billion (1.71 billion euros) reflected weakness in Europe. Daimler Trucks raised revenue 9.2% last year. The division is responsible for 27% of the company’s revenue total.

The sales increase in the area, including the U.S., accounted for most of the increase in production to 462,000 units during last year.

The Mercedes unit improved sales 7.4% and accounts for 54% of corporate revenue.

The executive changes will take place early in a year when Daimler isn’t forecasting any improvement in earnings companywide. Last year, the company’s operating profit fell 10%.

The outlook for businesses other than Mercedes-Benz Cars is for improved earnings, with a focus on cost-reduction efforts, slightly higher sales and continued market share improvement.

The Mercedes unit is projected to have profits slightly lower than last year.

Last week’s announcement also said that the contract of CEO Zetsche was extended until the end of 2016.

Zetsche has 13 years’ service on the management board, including six years when he headed the production and sales of Chrysler vehicles. In addition to being head of Mercedes-Benz Cars, Zetsche has headed the management board since January 2006, when he took over from Jüergen Schrempp.

In addition, Daimler also extended the contract of Thomas Weber, head of research and development, for the same period as Zetsche’s agreement. Weber has been on Daimler’s management board since 2003 and led the research-and-development effort for nearly nine years.

“The long-term orientation of the Group’s leadership is an essential factor for Daimler’s sustained success,” Bischoff said in the statement from Daimler, based in Stuttgart, Germany.

Editorial Director Howard Abramson and Staff Reporter Seth Clevenger contributed to this report.