New player could call Chrysler deal

(FRANKA BRUNS/Associated Press)

Hilmar Kopper, retiring chairman of the supervisory board of DaimlerChrysler, left, and CEO Dieter Zetsche appear with Manfred Bischoff, new chairman of the supervisory board, prior to the annual meeting Wednesday in Berlin. Bischoff's vote could be a tie-breaker on any deal to sell Auburn Hills-based Chrysler Group.

April 7, 2007

BY TIM HIGGINS

FREE PRESS STAFF WRITER

BERLIN -- The chairman appointed to the DaimlerChrysler AG Supervisory Board this week could make things tougher for Chrysler Group. He also holds the tie-breaking vote on any proposed sale.

After the automaker's annual shareholders meeting this week in Berlin, the supervisory board, which is much like a board of directors at a U.S. company, selected Manfred Bischoff as chairman.

Hilmar Kopper retired after 17 years as board chairman, first of Daimler-Benz AG then DaimlerChrysler after the 1998 merger with Chrysler Corp.

Bischoff is described as pragmatic and open to making change. He moved up the ranks in finance and project management for Daimler-Benz and most recently was chairman of the European Aeronautic Defense and Space Co., or EADS, which has ties to DaimlerChrysler.

It means Chrysler "will have to prove much more than before what they are worth and what it is they can do on their own," German auto analyst Christoph Sturmer of Global Insight said from his office in Frankfurt, Germany.

"Bischoff is one who is much more likely to listen to better arguments and not just stick to one strategy... and he always wants to have a number of options for no matter what the problem may be."

The leadership change comes as the future of Chrysler in DaimlerChrysler is in question. DaimlerChrysler is exploring all options, including a possible sale of the Auburn Hills-based division.

The 20-member supervisory board would have to approve any deal. If a tie occurs, the chairman, who represents shareholders, gets two votes.

Such a thing is rare but happened this year when the board voted on whether to partner Chrysler with Chery Automobile to distribute Chinese-made cars in North America under a Chrysler Group badge. Kopper reportedly had to break a tie to let the deal happen.

Locals knowledgeable of the situation say Bischoff is DaimlerChrysler Chairman Dieter Zetsche's hand-picked choice and will follow Zetsche's lead.

Bischoff began working for Daimler-Benz in 1976 as a project coordinator. He spent the last two decades primarily in aerospace. He was chairman of the board of directors of EADS, part-owned by DaimlerChrysler, from 2000 until stepping down Thursday.

While some German media reports credit Bischoff with ridding EADS of under-performing units, the company, which was cobbled together from several countries' nationally owned aerospace manufacturers, remains riddled with inefficiency. Its Airbus unit has repeatedly missed deadlines and run far over budget with its massive A380 airliner.