Daimler to Extend CEO Zetsche’s Contract by Five Years image

Daimler announced it will extend CEO Dieter Zetsche’s contract by other five years, with two years more than expected.

According to Der Spiegel magazine Daimler’s supervisory board will extend Dieter Zetsche’s contract until the end of 2018. The extension will be signed at a meeting to take place on February 6th, according to anonymous sources. The automaker did not comment on this issue. In September, an unnamed source from the company quoted by Reuters, said that Daimler is expected to extend CEO Dieter Zetsche contract by three more years to 2016.

“The issue can first be discussed in the supervisory board once the final year of the contract has begun, in other words in January at the earliest. It will not be a problem though,” the person familiar with the matter was quoted as saying by Reuters.

Initially, Zetsche’s contract was to expire at the end of 2013, but since then he made it clear he has no interest in preparing his succession yet. The CEO heads both the Daimler group and the core Mercedes-Benz business. The news about the contract extension came shortly after analysts warned that investors were worrying that Daimler is unable to close the performance gap with archrivals BMW and Audi.