Jürgen E. Schrempp
Encyclopedia
Jürgen Erich Schrempp was until December 31, 2005, the CEO of DaimlerChrysler, a German
-American
car and truck manufacturer. Following a decision of the board taken on July 28, 2005, he was succeeded on January 1, 2006, by Chrysler
frontman Dieter Zetsche
. Schrempp was the architect of the merger between Daimler Benz and Chrysler, which ultimately ended in failure.
made the acquisition of the Chrysler Corporation
to become DaimlerChrysler. Schrempp called the merger a "match made in heaven". In addition to the acquisition of Chrysler, Schrempp pursued the acquisition of Mitsubishi Motors
as part of his 'Three Pillars' strategy to expand the reach of Daimler-Benz into the major markets of the USA and Asia.
In 2004, the Mitsubishi
investment became a liability with the Japanese manufacturer swamped under a mountain of debt and following a refusal by other members of the Japanese Mitsubishi
keiretsu
to assist Daimler in funding its operation on-going. The German company eventually 'walked away' with further substantial losses. On the 14th of May, 2007, Daimler sold 80% of Chrysler to the private equity firm Cerberus.
Before becoming the CEO of Daimler-Benz in 1995, Schrempp headed the aerospace
division of Daimler-Benz, then called DASA
, which is EADS
today. DASA acquired the Dutch
aircraft manufacturer Fokker
that was already in problems in 1993 after it signed the contract stating the intention to take Fokker over on October 30, 1992. Schrempp called Fokker his "love baby". On January 22, 1996, after having subsidized the losses of Fokker with billions of Deutsche Marks, Daimler-Benz decided to stop putting more money into Fokker that subsequently went bankrupt.
Schrempp is a Director of the South African Coal, Oil and Gas Corporation Ltd., and Compagnie Financière Richemont S.A., Switzerland
. Additional engagements include the Chairmanship of United Global Academy - UGA, the Advisory Board of Deutsche Bank
, the European Advisory Board of Harvard Business School, and the German Council of INSEAD
. He is also on the board of Transnet
.
He was previously a non-executive director of Vodafone Group plc, after their 2000 take over of Mannesman Group.
, Germany
and Kitzbuehel Austria
where his wife, Lydia Schrempp, owns an italian restaurant. He has been married to Lydia since 2000, with whom he has a daughter called Loana Theresa (born in 2001) and a son called Luca-Timon (born in 2005). Schrempp also has two sons, Alexander and Marc, from his previous marriage to Renate Lutz. Schrempp created controversy at the time of the Daimler-Chrysler merger when he publicly implied that his career was a greater priority than his wife. After 30 years of marriage to Renate Lutz, Schrempp explained that "I was faced with the choice: work or marriage. And I realized that the challenges of this new venture meant more to me than anything else in the world." While still married in 1998, Schrempp attended a company party where he was alleged to have departed the event carrying his female assistant Lydia Deininger (now his wife) over his shoulder, while carrying a bottle of champagne in his hand.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
-American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
car and truck manufacturer. Following a decision of the board taken on July 28, 2005, he was succeeded on January 1, 2006, by Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
frontman Dieter Zetsche
Dieter Zetsche
Dieter Zetsche is a German businessman and the Chairman of Daimler AG and Head of Mercedes-Benz Cars since 2006 as well as member of the company's Board of Management since 1998....
. Schrempp was the architect of the merger between Daimler Benz and Chrysler, which ultimately ended in failure.
Career
During his tenure, Daimler-BenzDaimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...
made the acquisition of the Chrysler Corporation
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
to become DaimlerChrysler. Schrempp called the merger a "match made in heaven". In addition to the acquisition of Chrysler, Schrempp pursued the acquisition of Mitsubishi Motors
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...
as part of his 'Three Pillars' strategy to expand the reach of Daimler-Benz into the major markets of the USA and Asia.
In 2004, the Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
investment became a liability with the Japanese manufacturer swamped under a mountain of debt and following a refusal by other members of the Japanese Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
keiretsu
Keiretsu
A is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The keiretsu has maintained dominance over the Japanese economy for the greater half of the twentieth century....
to assist Daimler in funding its operation on-going. The German company eventually 'walked away' with further substantial losses. On the 14th of May, 2007, Daimler sold 80% of Chrysler to the private equity firm Cerberus.
Before becoming the CEO of Daimler-Benz in 1995, Schrempp headed the aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...
division of Daimler-Benz, then called DASA
DASA
DaimlerChrysler Aerospace AG, or DASA, was the former aerospace subsidiary of Daimler-Benz AG from 1989...
, which is EADS
EADS
The European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...
today. DASA acquired the Dutch
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
aircraft manufacturer Fokker
Fokker
Fokker was a Dutch aircraft manufacturer named after its founder, Anthony Fokker. The company operated under several different names, starting out in 1912 in Schwerin, Germany, moving to the Netherlands in 1919....
that was already in problems in 1993 after it signed the contract stating the intention to take Fokker over on October 30, 1992. Schrempp called Fokker his "love baby". On January 22, 1996, after having subsidized the losses of Fokker with billions of Deutsche Marks, Daimler-Benz decided to stop putting more money into Fokker that subsequently went bankrupt.
Schrempp is a Director of the South African Coal, Oil and Gas Corporation Ltd., and Compagnie Financière Richemont S.A., Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
. Additional engagements include the Chairmanship of United Global Academy - UGA, the Advisory Board of Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
, the European Advisory Board of Harvard Business School, and the German Council of INSEAD
INSEAD
INSEAD is an international graduate business school and research institution. It has campuses in Europe , Asia , and the Middle East , as well as a research center in Israel...
. He is also on the board of Transnet
Transnet
Transnet SOC Ltd is a large South African rail, port and pipeline company, headquartered in the Carlton Centre in Johannesburg. It was formed as a limited company on April 1, 1990. A majority of the company's stock is owned by the Department of Public Enterprises, or DPE, of the South African...
.
He was previously a non-executive director of Vodafone Group plc, after their 2000 take over of Mannesman Group.
Recognition
Schrempp is the recipient of:- Cross of the Order of MeritBundesverdienstkreuzThe Order of Merit of the Federal Republic of Germany is the only general state decoration of the Federal Republic of Germany. It has existed since 7 September 1951, and between 3,000 and 5,200 awards are given every year across all classes...
of the Federal Republic of Germany - Bavarian Order of MeritBavarian Order of MeritThe Bavarian Order of Merit is the order of merit of the Free State of Bavaria. It is awarded by the Minister-President of Bavaria as a "recognition of outstanding contributions to the Free State of Bavaria and the Bavarian people"....
- Medal of Merit of the Federal State of Baden-WürttembergBaden-WürttembergBaden-Württemberg is one of the 16 states of Germany. Baden-Württemberg is in the southwestern part of the country to the east of the Upper Rhine, and is the third largest in both area and population of Germany's sixteen states, with an area of and 10.7 million inhabitants...
- Commander of the National Order of Merit of the French Republic
- Commander of the French Legion of Honour
- The Vatican CityVatican CityVatican City , or Vatican City State, in Italian officially Stato della Città del Vaticano , which translates literally as State of the City of the Vatican, is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome, Italy. It has an area of...
’s Cross of the St. Gregorius Order - AustriaAustriaAustria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
n Grand Decoration of Honor in Gold with Star for Services - Brazilian Southern Cross.
- Woodrow Wilson Award for Corporate Citizenship
Personal life
Schrempp mainly resides in MunichMunich
Munich The city's motto is "" . Before 2006, it was "Weltstadt mit Herz" . Its native name, , is derived from the Old High German Munichen, meaning "by the monks' place". The city's name derives from the monks of the Benedictine order who founded the city; hence the monk depicted on the city's coat...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Kitzbuehel Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
where his wife, Lydia Schrempp, owns an italian restaurant. He has been married to Lydia since 2000, with whom he has a daughter called Loana Theresa (born in 2001) and a son called Luca-Timon (born in 2005). Schrempp also has two sons, Alexander and Marc, from his previous marriage to Renate Lutz. Schrempp created controversy at the time of the Daimler-Chrysler merger when he publicly implied that his career was a greater priority than his wife. After 30 years of marriage to Renate Lutz, Schrempp explained that "I was faced with the choice: work or marriage. And I realized that the challenges of this new venture meant more to me than anything else in the world." While still married in 1998, Schrempp attended a company party where he was alleged to have departed the event carrying his female assistant Lydia Deininger (now his wife) over his shoulder, while carrying a bottle of champagne in his hand.
External links
- Dutch Wikipedia :nl:Fokker 30 July 2005
- Daimler's nose dive: After reporting Germany's worst loss ever, the company dumps Dutch planemaker Fokker as diversification fails article in TIMETimeTime is a part of the measuring system used to sequence events, to compare the durations of events and the intervals between them, and to quantify rates of change such as the motions of objects....
International February 5, 1996 Volume 147, No. 6