Daimler CEO Vows Action as Investors Rage

DaimlerChrysler (DCX) Chief Executive Dieter Zetsche confirmed on Apr. 4 that discussions are under way with potential buyers of the money-losing Chrysler division. "I can confirm that we are talking with some of the potential partners who have shown a clear interest," Zetsche said, adding that he would not disclose any details of the talks in order to maintain maximum scope for maneuver.

The statement was a small but psychologically important concession to mounting market pressure for assurance that a sale is moving forward. Since Zetsche said on Feb. 14 that Daimler was considering "all options," including the sale of Chrysler, the group's share price has risen nearly 30%. It traded around $82 at midday on Apr. 4, down about 1%.

Despite relief that a deal is under discussion, investors pelted Zetsche and supervisory board members at the annual shareholders meeting in Berlin Apr. 4 with stinging criticism and sharp-edged questions about the company's failed merger strategy.

Sale Now Inevitable?
"Chrysler has been sick for many years and is dragging down the company" said Hans-Richard Schmitz, a lawyer and representative speaking on behalf of the Düsseldorf-based Association for the Protection of Minority Shareholders. "What's missing is a very clear and swift decision. I don't understand, Mr. Zetsche, why you are so hesitant?" More at BusinessWeek