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First he got lost by using the Mercedes Benz Navigation system, then he gets heckled by Shareholders.

BERLIN — DaimlerChrysler chief executive Jürgen Schrempp faced a hostile reception from fund managers and shareholders at the company's annual meeting yesterday.

One fund manager's quip — "Do you need to shoot yourself in the foot to prove you're a capable doctor?" — won cheers and a round of applause from the packed Berlin convention center.

While they fell short of giving Schrempp a vote of no-confidence, a number of senior fund managers opted to abstain from the traditional symbolic vote approving the performance of the management.

The company's earnings have tumbled in the past year, hit by quality problems at Mercedes-Benz, the collapse of alliances with Mitsubishi and Hyundai, a sales scandal that has seen the sacking of senior German managers, and a $1.56 billion restructuring of the Smart city car business.

Schrempp nevertheless told the audience: "We have made clear progress," claiming the company reached its operating earnings target for the full year despite a drop in fourth-quarter earnings. "We reached our profit target. But we're not satisfied with that," he said.

Shareholders, however, are unconvinced; the company's stock is worth far less than at the time of the 1998 merger between Daimler-Benz and Chrysler. "This is becoming a nightmare," said one shareholder.

What this means to you: Schrempp continues to ride out the storm, despite a series of woeful decisions. Unless the turnaround starts soon, DaimlerChrysler's shareholders will surely run out of patience with him.
We can write him, as loyal Mercedes-Benz customers, and tell him that we will stand behind him if he continues to offer our G-class, striped down or fully loaded.
 

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Brent, well put with regard to writing and encouraging MB to continue to build the G, and even more remotely the chance of a striped down version ala D90. I like that idea....

Anyway, as for Wall St., they will eat you up and spit you out sooner or later. This includes fund managers worldwide too. In other words, they get you coming and going, and this is not good for you or me if we are in the market.

Hopefully they MB/MBUSA will get their respective act/s together and listen to those who know..US..!!

500.
 

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BrentG500 - 4/7/2005 5:39 PM

"We reached our profit target. But we're not satisfied with that," he said.
Isnt that entirely the problem. Every good performance is beaten to death with the promise of a better one.

We all know that global domination is self limiting.
 

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Discussion Starter #4
Lawsuit resolved

This would have been a terrible week for Schrempp had he lost the $1 Billion lawsuit. The man got lost in his 2006 MB ML350 on Tuesday and was grilled by stockholders on Wednesday.

DaimlerChrysler hails victory in merger lawsuit
Fri Apr 8, 2005 05:40 AM ET
By Michael Shields and Poornima Gupta

FRANKFURT/DETROIT, April 8 (Reuters) - DaimlerChrysler (DCXGn.DE: Quote, Profile, Research) claimed vindication on Friday after a U.S. judge threw out a $1 billion lawsuit by casino mogul Kirk Kerkorian who said he had been deceived in the 1998 merger between Daimler-Benz and Chrysler.

The ruling laid to rest the lawsuit brought by billionaire Kerkorian and his Tracinda Corp. investment company that claimed German executives had falsely billed the $36 billion deal, one of the biggest in automotive history, as a merger of equals.

"We are happy that the court's decision confirms once and for all that Tracinda's lawsuit was absolutely baseless and that all the allegations against DaimlerChrysler in connection with the 1998 merger were completely unfounded," Chief Executive Juergen Schrempp said in a statement.

He added the company would continue to work on making the merger a success and that its executives still felt obligated to create value for shareholders.

DaimlerChrysler stock, the second-worst performer in the DJ Stoxx European car sector index this year, rose 0.4 percent to 32.96 euros by 0853 GMT, double the gain in the index.

"The ruling in the Kerkorian case in favour of DaimlerChrysler is of course positive for the carmaker because one factor of uncertainty loses its impact," said Christian Schindler, analyst at Landesbank Rheinland-Pfalz (LRP).

But he added: "The ruling has no financial impact on Daimler. No provisions had been built that would now have to be unwound."

DaimlerChrysler shares have nearly halved in value and have underperformed European peers by around 38 percent since they started trading in November 1998.

LAUGHING STOCK?

The ruling was welcome good news for Schrempp, who faced hours of grilling at Wednesday's annual meeting by irate shareholders who accused him of strategic missteps and allowing shoddy quality to jeopardise the crucial Mercedes brand.

Kerkorian was Chrysler's leading shareholder when it signed the deal that Schrempp boasted would form the world's first truly global carmaker.

"The Court concludes that Tracinda has failed to prove its claims of common law fraud and violations of the Exchange Act," U.S. District Court Judge Joseph Farnan in Delaware said in a ruling on Thursday.

Farnan ruled against all of Kerkorian's claims.

Kerkorian, who had demanded more than $1 billion in damages, contended that Schrempp only billed the deal as a merger of equals to lower the transaction price and avoid paying shareholders a "control premium".

Kerkorian's suit followed comments Schrempp made to The Financial Times in October 2000 that he always meant to make Chrysler "a division" of Stuttgart-based DaimlerChrysler. Kerkorian sued shortly after the article appeared.

"The Americans were laughed at in the German board meetings for having agreed to become a German corporation," Kerkorian said in a statement after the ruling. "Daimler management marvelled at the success of their project blitz and the takeover of an American icon."

Tracinda said it was considering all of its options.

"The message delivered by this result is unfortunate for all shareholders," Terry Christensen, attorney for Tracinda, said in a statement. (Additional reporting by Ralf Banser in Frankfurt)
 

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The DC stock price is still head and shoulders above FORD and GM. FORD and GM can't give cars (or trucks) away! Healthcare costs and steel prices have just about broken them. Debt has been downgraded and will be again it looks like. FORD stock price will face a steep decline after news this past week. No significant new product in the pipeline either. In the meantime, JEEP, a DC company, has announced the new Liberty CRD is available. Isn't it odd we can't get the ML or G with a Diesel engine for the states? If you want a picture of how a Global company can be run correctly, Look at Caterpillar Corporation. They are building and shipping equipment at an all-time high rate. Quality control is better than ever. Maybe Schremp can turn DC around.
 
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