Mercedes-Benz Chief Quits

22 August 2005

There's turmoil at the top of troubled luxury carmaker Mercedes-Benz.

The DaimlerChrysler flagship division, headquartered in Germany, is losing its head honcho Eckhard Cordes, who was passed over for the position of ceo at the parent company.

Cordes resigned three weeks ago as soon as Dieter Zetsche was appointed to the top job. He will leave Mercedes at the end of this month and the marque will now come under the latter's direct control.

Mercedes has seen profits slide since the second quarter of 2004 due to build-quality problems and fierce competition in the market.

Cordes, who was brought in to troubleshoot last fall, had begun to make headway, mainly through a planned €4.7 billion ($5.72bn; £3.18bn) cost-cutting exercise dubbed CORE.

Data sourced from AdAge (USA); additional content by WARC staff