Zetsche’s contract to be extended by Daimler until 2016, report says image

Daimler AG is expected to extend the contract of CEO Dieter Zetsche by three more years to 2016, according to an unnamed source from the company quoted by Reuters.

“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.

Car and truck maker Daimler declined to comment on the matter, but earlier reports on the matter suggest that Zetsche is likely to have his contract extended. German weekly magazine Der Spiegel wrote earlier this month that a decision regarding Zetsche’s contract extension will be taken by Daimler’s supervisory board at a meeting in February.

According to analysts, investors are worrying that Daimler is unable to close the performance gap with archrivals BMW and Audi. Further concerns were brought by Daimler’s announcement last week according to which profit would fall at the Mercedes-Benz cars division this year due to a worsening market in Europe and China.

Dieter Zetsche’s contract is set to expire at the end of 2013. The CEO heads both the Daimler group and the core Mercedes-Benz business. Zetsche has made clear he has no interest in preparing his succession yet.