KEY POINTS:
Burned by its failed merger with Chrysler, parent Daimler has decided to forgo all acquisitions for its luxury brand Mercedes-Benz, emulating the go-it-alone strategy of rival BMW after it sold Rover. "There are no acquisition targets I can recognise that could strengthen Mercedes,'' CEO Dieter Zetsche told German Sunday newspaper Welt am Sonntag.
The Daimler chief, who just days ago sealed a deal to sell its loss-making US unit Chrysler to private equity firm Cerberus Capital Management, sees little to gain from trying to diversify risks by balancing its brand portfolio with another leading marque.
"We are at the top of the industry with the Mercedes car brand. Any integration of another brand would tend to drag us down. There is nothing to win from it either for the (Mercedes) brand or for the profitability.''
"The Daimler AG will offer exciting vehicles in the premium segment, remains highly profitable, is the most attractive employer, and greatly pleases its customers and shareholders with top products and services,'' hesaid.
Since BMW sold its British unit Rover in 2000 for a pittance, Daimler's arch-rival has propagated a philosophy that close mergers and alliances only weaken a brand's profile.
- REUTERS
