INTERVIEW out of many pieces. we need to bring those pieces together to show a picture of the future, in which more effi cient combustion engines will VIEW continue to play a signifi cant role for years to come. hybrids in different forms and full elec- tric driving – with battery storage of energy as well as with hydrogen storage and a fuel cell – InterviewINTER Seeing More will be a further part of this total picture. we will see all of those technologies come to market within the next fi ve years. As you look ahead to the future, what Light than Shadow will Mercedes-Benz cars be like? mercedes-benz cars will continue to offer all the characteristics people enjoy today – fantastic An Interview with Dieter Zetsche, safety, excellent comfort, and quality – which will Chairman of the Board of Management, be combined with even more effi cient power- Daimler AG, and Head of Mercedes-Benz Cars trains and, ultimately, zero-emissions propulsion. we are currently running a test in London with How is Daimler faring in this climate of eco- basically no impact in south america, and we 100 battery-powered smart cars, more than any- nomic turmoil? are seeing no impact in oil-producing markets – one else has tested. we have fuel-cell cars that Like everybody else, we are operating in an except for russia. in the middle east, business are totally competitive as a product, by today’s extremely volatile market environment where is still strong. so there are areas that still have standards. we are working with the customer on things change every day, and in recent weeks, momentum, but we are feeling the impact in infrastructure, but we have conventional drive- more often for the worse than for the better. in most parts of the world. trains in combustion engines, in combination an industry like ours, we are more susceptible Are you worried about the future? with hybrids. in an s-class this year, we’ll have The 2010 Mercedes-Benz BlueHYBRID to economic stagnation than others, because it’s at the beginning of any crisis, people tend co2 emissions results of just 190 grams per ki- a bigger decision to buy a new car than it is to to think it is the beginning of the end. and when lometer, which will make it the most effi cient we want to become a company that is totally “paralysis through analysis.” of course, you buy chewing gum. things are going well, people think cycles are a vehicle of its class in the industry. with a lithium driven by our key values, which are about be- can’t just jump on every train without think- however, that said, daimler has many thing of the past, and there will never be a down- ion battery, it will be the fi rst of its type in the ing open-minded, working with integrity, and ing about its destination fi rst, but in most cases, strengths that help us in this environment. turn again. neither one of those positions is true. market. ultimately, we intend to lead the industry maintaining a confi dent and high-performance somewhere in the middle is the best place to probably the most important is that with there is no doubt that the current fi nancial crisis in this paradigm shift toward no emissions. culture. we are heading in this direction, but be. when i worked in the u.s., there was more mercedes-benz, we have the world-leading is unlike any other that we have experienced In a company the size of Daimler, how we’re getting there slowly, step by step. that is immediate reaction, and a certain amount of brand in the automotive business, which was in the past, and it will certainly create a world- do you stay in touch with, and inspire, hun- the only way you can operate. optimism that we could start down a path and recently confi rmed once again by a global sur- wide slowdown of economic growth. however, dreds of thousands of employees? Can the corporate culture of Daimler fi gure things out along the way. there is more vey. second, we have tremendous technological i’m convinced that fi ve years from now we will the most powerful tool is always personal be organized effectively? It must be very dif- long-term thinking and more basic analysis on breadth, depth, and strength. third, we have look back and say this was a real big bump in contact. it’s clear that you cannot communicate fi cult to instill a certain type of philosophy the german side of the business. the mix of a strong fi nancial backbone. and last but not the road, but it was not the end of the road. with, in our case, 270,000 people on a regular ba- in such a vast company? both approaches goes in the optimal direction. Dieter Zetsche least, we have very well-educated, highly moti- therefore, we will keep on trucking ahead. sis, so you have to do it by example. you should as i said, these processes take time. First when you have experienced both worlds, you vated people. with this set of strengths, i’m very we have several long-term structural mar- try to have contact with as many representative of all, it’s about living the values you are striv- have a good chance of succeeding. EDITORS’ NOTE Dieter Zetsche has been a confi dent that we will be able to overcome any ket issues to deal with. we will certainly see groups as possible within your company and ing to instill, and second, it’s about communica- Today’s leaders don’t always set the member of the board of management of Daimler setbacks and ultimately emerge stronger and a new approach to the regulation of fi nancial take time to communicate directly with them. to tion. those are the two key levers around which best example to young people. What can be AG since December 1998, and Chairman since with a positive edge over the competition. markets and things that were possible in the some extent, you can let it happen by accident. we’re trying to build our cultural change. we done about that? January 2006. After graduating as an engi- Daimler has a fi nancial services divi- past will not be possible in the future, which is whether it’s in the elevator or when you’re hav- combine our corporate culture with developing First, we have to acknowledge that there neer from the University of Karlsruhe, he joined sion. Has any of the recent turmoil affected probably a good thing. ing lunch, just do the things you have to do any- the cars we are envisioning, and it is working. are some very bad examples of behavior among the research department of then Daimler-Benz that side of the business? we’ll also see some important changes in a way but among employees, so you don’t develop you just have to aim for the long run. it’s a managers, and in some cases, among politicians AG. Zetsche completed a doctorate in engineer- not directly. until april 2008, we were number of other areas, like climate change and an untouchable aura. communicate and be re- marathon, not a sprint. as well. that’s a fact, unfortunately. at the same ing in 1982 at the University of Paderborn, and absent from the debt markets because of our the limitations of oil resources – especially in our ceptive, no matter the topic or issue. those are we are living in a world of big challenges, time, when you talk to employees in a country since then he has held numerous board of man- known overhang from the demerger with industry, where we will see emission-free driv- little seeds that you can plant, which over time, and major change and uncertainties. in this like germany, where managers in general do agement positions within Daimler, including chrysler. since we have come back, we have ing and fuels that are not based on petroleum. will change the perception people have about world, i believe that basic values are what ulti- not have a good reputation, they tend to have CEO and President of the Chrysler Group; head had no trouble fi nding access to fi nancial mar- so there will be a paradigm shift in powertrain you, and open up the lines of communication. mately lead to success. that is true for human a more positive view of their own ceos and of the Commercial Vehicles Division; Head of kets. Like the entire industry, we are faced with technologies. i’m a strong believer in technol- the consequence is that you get lots of e-mails behavior, and it’s true for business too. those other top management. this shows, to some Global Sales and Marketing of Mercedes-Benz; values being negatively affected as a conse- ogy, and i believe that when we all focus on sent directly to you and you answer them. all values continue to be things like innovation extent, that a portion of the problem is commu- President of Freightliner Corporation (Portland, quence of the overall situation. but thus far, the challenges at hand, we will fi nd solutions. those are actions aimed at individuals, and to- and fi nancial soundness, in contrast to gim- nication. there is a negative perception that’s Oregon); President of Mercedes-Benz Argentina; that has had no direct impact on our fi nancing there is not one silver bullet, but over time we gether they can change the culture and open up micks and short-term hype designed to seduce being driven by some negative incidents and Head of the Development Department and Chief opportunities. will come up with answers to these challenges – the organization. the audience. so, in some areas, going back to examples. when you know the people you are Engineer of Mercedes-Benz do Brasil; and In these economic times, business indeed, we’re starting to do so. they will fuel a Do you focus heavily on communicat- traditional values is a strong foundation for our talking about, you see more light than shadow. Senior Manager and Chief Engineer of the Cross- may drop off in some countries but pick up new wave of growth and future opportunities. ing electronically? future success, especially in these times of fast so we have the task of trying to communicate Country Vehicle Unit, Daimler-Benz AG. in others. Do you fi nd this to be true for You have developed a lot of technology i’d rather meet as many people as possible and signifi cant change. more in order to show that what we’re doing is Daimler’s worldwide business? that has not yet been put into automobiles. in person. i have my blackberry, as others do, You have a very calm demeanor. Do not all bad. COMPANY BRIEF Stuttgart, Germany-based we have experienced a ripple effect in the What will decide when the public sees it? and i’m a little bit addicted to it. but, in general you ever lose your temper? there’s no question that we need good Daimler AG, with its businesses Mercedes- traditional triad markets, when effects from dif- the markets will. the most profound terms, my personal style of working is to inter- very rarely. the tougher times get, and the political leadership and good business leader- Benz Cars, Daimler Trucks, Daimler Financial fi culties in the fi nancial sector began to make an change has been driven by increases in fuel act with people. more tension builds in whatever kind of nego- ship. you’re either on the glass-half-full side, Services, Mercedes-Benz Vans, and Daimler impact in the real world and caused a signifi - prices at the gas station, more so than by regu- With so many employees and such a big tiation, typically you get the upper hand when and you say there are lots of good guys and Chrysler Buses, is a leading global producer of cant downturn in the market. this in turn has lation, which can at times be too abrupt. at the company, what frustrates you the most? you keep your mind cool and stay on the factual you want to become one of them, or you’re premium passenger cars and the largest manu- also had some effects on the emerging markets, end of the day, customers make the best deci- that would be the time it takes for technol- side, especially when the other side doesn’t. but on the glass-half-empty side, and you say there facturer of commercial vehicles in the world. The as russia shut down its stock market for some sions about such changes. it’s happening today. ogy and new products to be incorporated. in i cannot deny that, very rarely, that happens to are many bad examples, so it’s time to effect Daimler Financial Services division has a broad days and we saw a signifi cant short-term cool- we are improving fuel economy and reducing this industry, it can take years for a prototype to me as well. change and become a positive example your- offering of fi nancial services, including vehicle ing down of its economic activity. china is still emissions all the time, in a signifi cant way, but be developed to the point that it can be offered Did you fi nd your experience heading self. in both cases, we have to work together fi nancing, leasing, insurance, and fl eet manage- moving, but with a little less speed than before. this has to further accelerate. there are technol- in the showroom. as an entrepreneur, i fi nd that the U.S. operations to be informative, as far in order to bring back values where they have ment. Daimler (www. daimler.com) sells its prod- the whole world is very much interwoven, and ogies that have not been applied in the past that frustrating even though as an engineer, i under- as picking up certain U.S. traits? been lost, and to defend all the positive ele- ucts in nearly all the countries of the world and there are very few areas in the world that are we will see going forward. but as i said, there stand why that’s the way it is. the lack of speed For sure. i very much enjoyed the straight- ments of democracy and our economic systems, has production facilities on fi ve continents. totally autonomous. so far, we are still seeing is not one solution. it’s a mosaic being built of cultural change can also test my patience. forwardness of americans and the lack of and to erase their bad elements.• 26 Leaders posted with permission. copyright © 2009 leaders magazine, inc. volume 32, number 1 INTERVIEW out of many pieces. we need to bring those pieces together to show a picture of the future, in which more effi cient combustion engines will VIEW continue to play a signifi cant role for years to come. hybrids in different forms and full elec- tric driving – with battery storage of energy as well as with hydrogen storage and a fuel cell – InterviewINTER Seeing More will be a further part of this total picture. we will see all of those technologies come to market within the next fi ve years. As you look ahead to the future, what Light than Shadow will Mercedes-Benz cars be like? mercedes-benz cars will continue to offer all the characteristics people enjoy today – fantastic An Interview with Dieter Zetsche, safety, excellent comfort, and quality – which will Chairman of the Board of Management, be combined with even more effi cient power- Daimler AG, and Head of Mercedes-Benz Cars trains and, ultimately, zero-emissions propulsion. we are currently running a test in London with How is Daimler faring in this climate of eco- basically no impact in south america, and we 100 battery-powered smart cars, more than any- nomic turmoil? are seeing no impact in oil-producing markets – one else has tested. we have fuel-cell cars that Like everybody else, we are operating in an except for russia. in the middle east, business are totally competitive as a product, by today’s extremely volatile market environment where is still strong. so there are areas that still have standards. we are working with the customer on things change every day, and in recent weeks, momentum, but we are feeling the impact in infrastructure, but we have conventional drive- more often for the worse than for the better. in most parts of the world. trains in combustion engines, in combination an industry like ours, we are more susceptible Are you worried about the future? with hybrids. in an s-class this year, we’ll have The 2010 Mercedes-Benz BlueHYBRID to economic stagnation than others, because it’s at the beginning of any crisis, people tend co2 emissions results of just 190 grams per ki- a bigger decision to buy a new car than it is to to think it is the beginning of the end. and when lometer, which will make it the most effi cient we want to become a company that is totally “paralysis through analysis.” of course, you buy chewing gum. things are going well, people think cycles are a vehicle of its class in the industry. with a lithium driven by our key values, which are about be- can’t just jump on every train without think- however, that said, daimler has many thing of the past, and there will never be a down- ion battery, it will be the fi rst of its type in the ing open-minded, working with integrity, and ing about its destination fi rst, but in most cases, strengths that help us in this environment. turn again. neither one of those positions is true. market. ultimately, we intend to lead the industry maintaining a confi dent and high-performance somewhere in the middle is the best place to probably the most important is that with there is no doubt that the current fi nancial crisis in this paradigm shift toward no emissions. culture. we are heading in this direction, but be. when i worked in the u.s., there was more mercedes-benz, we have the world-leading is unlike any other that we have experienced In a company the size of Daimler, how we’re getting there slowly, step by step. that is immediate reaction, and a certain amount of brand in the automotive business, which was in the past, and it will certainly create a world- do you stay in touch with, and inspire, hun- the only way you can operate. optimism that we could start down a path and recently confi rmed once again by a global sur- wide slowdown of economic growth. however, dreds of thousands of employees? Can the corporate culture of Daimler fi gure things out along the way. there is more vey. second, we have tremendous technological i’m convinced that fi ve years from now we will the most powerful tool is always personal be organized effectively? It must be very dif- long-term thinking and more basic analysis on breadth, depth, and strength. third, we have look back and say this was a real big bump in contact. it’s clear that you cannot communicate fi cult to instill a certain type of philosophy the german side of the business. the mix of a strong fi nancial backbone. and last but not the road, but it was not the end of the road. with, in our case, 270,000 people on a regular ba- in such a vast company? both approaches goes in the optimal direction. Dieter Zetsche least, we have very well-educated, highly moti- therefore, we will keep on trucking ahead. sis, so you have to do it by example. you should as i said, these processes take time. First when you have experienced both worlds, you vated people. with this set of strengths, i’m very we have several long-term structural mar- try to have contact with as many representative of all, it’s about living the values you are striv- have a good chance of succeeding. EDITORS’ NOTE Dieter Zetsche has been a confi dent that we will be able to overcome any ket issues to deal with. we will certainly see groups as possible within your company and ing to instill, and second, it’s about communica- Today’s leaders don’t always set the member of the board of management of Daimler setbacks and ultimately emerge stronger and a new approach to the regulation of fi nancial take time to communicate directly with them. to tion. those are the two key levers around which best example to young people. What can be AG since December 1998, and Chairman since with a positive edge over the competition. markets and things that were possible in the some extent, you can let it happen by accident. we’re trying to build our cultural change. we done about that? January 2006. After graduating as an engi- Daimler has a fi nancial services divi- past will not be possible in the future, which is whether it’s in the elevator or when you’re hav- combine our corporate culture with developing First, we have to acknowledge that there neer from the University of Karlsruhe, he joined sion. Has any of the recent turmoil affected probably a good thing. ing lunch, just do the things you have to do any- the cars we are envisioning, and it is working. are some very bad examples of behavior among the research department of then Daimler-Benz that side of the business? we’ll also see some important changes in a way but among employees, so you don’t develop you just have to aim for the long run. it’s a managers, and in some cases, among politicians AG. Zetsche completed a doctorate in engineer- not directly. until april 2008, we were number of other areas, like climate change and an untouchable aura. communicate and be re- marathon, not a sprint. as well. that’s a fact, unfortunately. at the same ing in 1982 at the University of Paderborn, and absent from the debt markets because of our the limitations of oil resources – especially in our ceptive, no matter the topic or issue. those are we are living in a world of big challenges, time, when you talk to employees in a country since then he has held numerous board of man- known overhang from the demerger with industry, where we will see emission-free driv- little seeds that you can plant, which over time, and major change and uncertainties. in this like germany, where managers in general do agement positions within Daimler, including chrysler. since we have come back, we have ing and fuels that are not based on petroleum. will change the perception people have about world, i believe that basic values are what ulti- not have a good reputation, they tend to have CEO and President of the Chrysler Group; head had no trouble fi nding access to fi nancial mar- so there will be a paradigm shift in powertrain you, and open up the lines of communication. mately lead to success. that is true for human a more positive view of their own ceos and of the Commercial Vehicles Division; Head of kets. Like the entire industry, we are faced with technologies. i’m a strong believer in technol- the consequence is that you get lots of e-mails behavior, and it’s true for business too. those other top management. this shows, to some Global Sales and Marketing of Mercedes-Benz; values being negatively affected as a conse- ogy, and i believe that when we all focus on sent directly to you and you answer them. all values continue to be things like innovation extent, that a portion of the problem is commu- President of Freightliner Corporation (Portland, quence of the overall situation. but thus far, the challenges at hand, we will fi nd solutions. those are actions aimed at individuals, and to- and fi nancial soundness, in contrast to gim- nication. there is a negative perception that’s Oregon); President of Mercedes-Benz Argentina; that has had no direct impact on our fi nancing there is not one silver bullet, but over time we gether they can change the culture and open up micks and short-term hype designed to seduce being driven by some negative incidents and Head of the Development Department and Chief opportunities. will come up with answers to these challenges – the organization. the audience. so, in some areas, going back to examples. when you know the people you are Engineer of Mercedes-Benz do Brasil; and In these economic times, business indeed, we’re starting to do so. they will fuel a Do you focus heavily on communicat- traditional values is a strong foundation for our talking about, you see more light than shadow. Senior Manager and Chief Engineer of the Cross- may drop off in some countries but pick up new wave of growth and future opportunities. ing electronically? future success, especially in these times of fast so we have the task of trying to communicate Country Vehicle Unit, Daimler-Benz AG. in others. Do you fi nd this to be true for You have developed a lot of technology i’d rather meet as many people as possible and signifi cant change. more in order to show that what we’re doing is Daimler’s worldwide business? that has not yet been put into automobiles. in person. i have my blackberry, as others do, You have a very calm demeanor. Do not all bad. COMPANY BRIEF Stuttgart, Germany-based we have experienced a ripple effect in the What will decide when the public sees it? and i’m a little bit addicted to it. but, in general you ever lose your temper? there’s no question that we need good Daimler AG, with its businesses Mercedes- traditional triad markets, when effects from dif- the markets will. the most profound terms, my personal style of working is to inter- very rarely. the tougher times get, and the political leadership and good business leader- Benz Cars, Daimler Trucks, Daimler Financial fi culties in the fi nancial sector began to make an change has been driven by increases in fuel act with people. more tension builds in whatever kind of nego- ship. you’re either on the glass-half-full side, Services, Mercedes-Benz Vans, and Daimler impact in the real world and caused a signifi - prices at the gas station, more so than by regu- With so many employees and such a big tiation, typically you get the upper hand when and you say there are lots of good guys and Chrysler Buses, is a leading global producer of cant downturn in the market. this in turn has lation, which can at times be too abrupt. at the company, what frustrates you the most? you keep your mind cool and stay on the factual you want to become one of them, or you’re premium passenger cars and the largest manu- also had some effects on the emerging markets, end of the day, customers make the best deci- that would be the time it takes for technol- side, especially when the other side doesn’t. but on the glass-half-empty side, and you say there facturer of commercial vehicles in the world. The as russia shut down its stock market for some sions about such changes. it’s happening today. ogy and new products to be incorporated. in i cannot deny that, very rarely, that happens to are many bad examples, so it’s time to effect Daimler Financial Services division has a broad days and we saw a signifi cant short-term cool- we are improving fuel economy and reducing this industry, it can take years for a prototype to me as well. change and become a positive example your- offering of fi nancial services, including vehicle ing down of its economic activity. china is still emissions all the time, in a signifi cant way, but be developed to the point that it can be offered Did you fi nd your experience heading self. in both cases, we have to work together fi nancing, leasing, insurance, and fl eet manage- moving, but with a little less speed than before. this has to further accelerate. there are technol- in the showroom. as an entrepreneur, i fi nd that the U.S. operations to be informative, as far in order to bring back values where they have ment. Daimler (www. daimler.com) sells its prod- the whole world is very much interwoven, and ogies that have not been applied in the past that frustrating even though as an engineer, i under- as picking up certain U.S. traits? been lost, and to defend all the positive ele- ucts in nearly all the countries of the world and there are very few areas in the world that are we will see going forward. but as i said, there stand why that’s the way it is. the lack of speed For sure. i very much enjoyed the straight- ments of democracy and our economic systems, has production facilities on fi ve continents. totally autonomous. so far, we are still seeing is not one solution. it’s a mosaic being built of cultural change can also test my patience. forwardness of americans and the lack of and to erase their bad elements.• volume 32, number 1 posted with permission. copyright © 2009 leaders magazine, inc. Leaders 27