Daimler Chrysler's premium Mercedes-Benz flagship has stirred up its sales team in a bid to boost its sagging profit margin, German weekly magazine Der Spiegel reported. In a report to be published on Monday, Der Spiegel said Mercedes sales and marketing chief Joachim Schmidt has been shifted to another post and will be replaced by the European commercial vehicles division head, Klaus Maier.
The move followed Mercedes chief Eckhard Cordes' new strategy of sharply boosting the flagship's profits.
"I'm more focused on profit margin target than sales volume," Cordes was quoted as telling its managers in the Spiegel report. Mercedes made low margins but big volume business from selling cars with big rebates for companies' fleet and car rentals firms like Sixt.
Stung by sagging 2004 operating profits, Mercedes has launched an efficiency drive to boost operating results at the division by at least 3 billion euros ($4.0 billion) and more than double its operating margin to 7 percent in 2007.
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