Zetsche Faces Challenge to Daimler Chairmanship

Former Daimler CEO Dieter Zetsche faces opposition to becoming chairman from key investors who blame him for the company’s problems, says Handelsblatt.

Daimler’s current supervisory board chairman, Manfred Bischoff, is expected to recommend that Zetsche replace him, effective in mid-2021. Zetsche, 66, was succeeded as CEO in May by Ola Kallenius, 49.

Supervisory boards in Germany have no input on operational decisions. But they do grant approval for major corporate decisions, hire senior managers and determine executive compensation.

Handelsblatt cites the managers of two large investment funds—Union Investment and the German Assn. for the Protection of Securities Holdings—who vehemently oppose any future role for Zetsche at Daimler.

They blame him for the company’s softening sales, sagging profits and costly recalls involving diesel pollution and exploding Takata airbag inflators. Daimler has lowered its outlook for 2019 four times in the past 13 months.