This slump seems moreover pas near stop

The image is strong. Here are several weeks that the major patterns of Daimler camped in mounted interim offices to quickly goes in the former Museum of the mark. The headquarters of the company, in Stuttgart, was to be entirely rebuilt. But the work was stopped net. Similarly, the destruction of the old building was cancelled. The reason To save... The leaders of the Group were evil build a building brand-new at the same time where their main division, the constructor of Mercedes automobiles employees, need to make unprecedented efforts to the current storm. 47,000 employees have been placed in technical unemployment in recent months and the rest of the staff had to accept a reduction in working time which led to a decline of 8.75 of the revenue. These measures should help to avoid dry layoffs until summer 2010. The bonus to be paid for the year 2008, representing a budget of EUR 280 million, have for their part been frozen. They will be converted into shares term. These restrictions will reduce the expenses of the Group of EUR 2 billion. But it will take longer to straighten head.

Because Daimler, who had already lost 12 seats (23rd) last year in the ranking of the magazine "Fortune" of the largest global groups in terms of turnover, is experiencing serious misfire for a few months. Its sales of cars collapsed 23 in the first half, those trucks of 48. Or the automotive division alone, represents 50 of the turnover of the group. "Among the 18 most important car manufacturers of the planet, only Mitsubishi, Nissan and Ford displayed more bad performance, note Stefan Bratzel, Professor in a University centre specialized in the automobile to Bergisch Gladbach." BMW has limited the damage with a 19.5 drop whereas the world average reached 22.

The "bullet" Chrysler

In the first half, Daimler suffered a net loss of EUR 2.3 billion, against a profit of 2.7 billion the previous year, and its turnover has dropped by 23 to EUR 38.3 billion. This slump seems, moreover, pas near stop. Experts estimate that sales of Mercedes should decline by 27 throughout the year. Its heavy weight (-39) and its utilities (-58) will know even darker months.

How has it happened The global crisis of the automotive market of course partly this dramatic decline. To make matters worse, "Daimler suffers more than the others because, with Mercedes, it is present on the premium segment, adds Mr. Bratzel." And with the recession, people hesitate more buy expensive models. As case premiums, they benefit mainly to manufacturers of cheap cars.

But if the crisis considerably amplified the problems of Mercedes, the discomfort seems much deeper. The diagnosis, it is the own Daimler CEO, Dieter Zetsche, that has delivered it recently in the magazine "Der Spiegel". "The company it is permitted to be guided by his dreams for too long neglecting to work hard", he said. A stone in the garden of his predecessors. A too want to focus on the construction of an empire, they have neglected the day-to-day management of their activities. In the commands from 1987 to 1995, Edzard Reuter has diversified group in rail transport, the air and aerospace. During the next decade, Jürgen Schrempp began by refocusing its efforts on the car before investing huge sums in Chrysler, Mitsubishi and Hyundai. Three operations were failures. "Chrysler was a weight which prevented Daimler to move forward," summarizes Eva-Maria John, a specialist automotive analyst. "Many managers have devoted much of their time to attempt to resolve the problems of their American subsidiary, forgetting that they should also continue to ensure the future of Mercedes, adds Stefan Bratzel. They include completely missed the environmental shift took all their main competitors about two years ago. "Some, in Stuttgart, today recognize this error under cover of anonymity. "There is a little fire in eighteen months, conceded a framework.". But we are now heavily investing in all possible technologies to our catch.

Innovation neglected

Some engineers of the Group had yet felt the wind. Before BMW invented the technology that allows the automatic extinction of the engine at every stop of the vehicle. But "big bosses" Daimler found this unnecessary innovation. This "gadget" is but now one of the main arguments for the sale of the Munich rival. "We launched this technology with one or two years behind," says Professor Herbert Kohler, Vice President of research and engineering for Daimler. However, survive today in the automotive sector, "to have a very large size to benefit from significant economies of scale or be very innovative for stand of laconcurrence", analysis Eva - Maria John.De however, many experts believe that all inventions of the world will not allow Daimler to offset its modest size.

This constructor is "too small" slice Stefan Bratzel. "The development of new more environmentally friendly systems of environment will require billions of euros of investment, and a group which sells 1.5 to 2 million vehicles per year will never fight with equal weapons with a competitor such as Audi, which can benefit at a lower cost of the innovations of its parent company, Volkswagen."To limit costs, Daimler is looking for a few months to use similar parts on different models. The very elitist class E itself shares components with other cars of the brand. "It is a step forward, but all its competitors do this for a long time," explained an analyst at francfortois. Series 5 and 7 of BMW thus share many spare parts. And the Audi A3 is nothing other than a more refined design Golf. "To really lower its cost, Daimler must go further and build partnerships with other manufacturers", summarizes Ferdinand Dudenhöffer, Director of the automotive centre of Gelsenkirchen University.

Dieter Zetsche seems to have understood this need. It has thus acquired may 10 of the capital of the U.S. manufacturer of Tesla Electric cars. The next Smart model, for its part, should be designed jointly with Renault. And the pattern of operations of Daimler, Rainer Schmückle, frequently meets BMW counterpart to try to find ways of cooperation. "They are likely to consolidate their purchases in some minor areas, j. M. Dudenhöffer. The idea would be that Peugeot and Citroen made many years ago, but with several manufacturers. Opel could for example design with Daimler engines and/or platforms. To associate with European competitors would limit cultural issues. "A view that does not share Stefan Bratzel. "The best solution for Daimler would cooperate with a generalist constructor based in a country growing as the India or China."

Such reconciliation would however require a veritable "cultural revolution" in Stuttgart. "Engineers of the group must be more open because they still don't like integrate into their models of spare parts that they have not imagined themselves," said Mr. Dudenhöffer. Many Mercedes executives also continue to think that a "premium" as their mark can not become a general practitioner. The example of Audi however proves the contrary. This extreme conservatism has until now been undermined all attempts at reconciliation. "The cooperation with Mitsubishi was a failure, enumerates the Professor Bratzel. Assuming 10 stake in Hyundai capital has led to nothing and the union with Chrysler has cost them billions in vain. "Daimler also seems to take its time before signing a genuine strategic partnership. Many experts thought and the output of the new class A and B would have been an opportunity for the group to join forces with one of his rivals. But Mercedes, once more, rider only.

"Important potential".

The next few months will be crucial for the firm to the Silver Star. The opinions are very shared about his future. "We could attend one of the most beautiful industrial metamorphoses," imagine a Goldman Sachs note. "Daimler has significant growth potential if the recovery scenario is confirmed," insists Daniel Schwarz, of Commerzbank. Marc-Rene Tonn, M.M. Warburg analyst, recommends buying the titles of the constructor. But others do not share this optimism. "We are concerned always low margins in the group", writes Adam Hull, of WestLB. Dieter Zetsche is "a communicating outstanding, said Peter Schmidt, who heads the Office of English Council Automotive Industry Data." But his group is disabled from the feet to the head. Audi has managed to pass before with humiliating ease. "A Daimler to prove that he can still cap the subsidiary of Volkswagen on the post.