BERLIN, April 6 (AP) - Disgruntled shareholders and fund managers criticized DaimlerChrysler executives on Wednesday for the company's recent earnings slide and quality problems at the Mercedes division, demanding that the chief executive, Jürgen E. Schrempp, step down. Mr. Schrempp defended Daimler's performance but said it was intent on doing better.þþDespite the criticism, 95 percent of shareholders represented here gave the board a vote of confidence. More than 8,000 investors attended the annual meeting, and several fund managers said they would oppose or abstain from the largely symbolic vote on management's performance.þþÿIs it really useful to shoot yourself in the foot to prove you're a capable doctor?ÿ asked Klaus Kaldemorgen of Deutsche Bank's fund management unit, DWS, to applause from a packed auditorium at the Berlin Messe convention center.þþOthers called for Mr. Schrempp, whose contract runs through 2008, to leave the company. An individual shareholder, Hans Walter Grunewalder, remarked, ÿIf there's anything you can do or say, it's only that 'I hereby resign.' ÿ þþMr. Schrempp heard accusations of mismanagement for hours, a result of a German law that gives anyone with even a few shares five minutes at the microphone.þþMost were critical of Daimler's sagging fourth-quarter results, mentioning quality issues that have troubled Mercedes-Benz and the costly reduction of the money-losing Smart car unit.þþThomas Meier of Union Investment said his fund would abstain from the vote of confidence in management. ÿThe merger of Daimler-Benz and Chrysler,ÿ he said, ÿwhich was once called a marriage made in heaven, has not paid off.ÿ þþMr. Schrempp said DaimlerChrysler was working to overcome the difficulties that caused earnings in the Mercedes division nearly to evaporate last quarter and led to a 1.2 billion euro ($1.55 billion) revamping of the Smart car business.þþÿWe have made clear progress,ÿ Mr. Schrempp said, noting that the company had reached its operating-earnings goal for the full year despite the drop in the fourth quarter. ÿWe reached our profit target. But we're not satisfied with that.ÿþþHe added that sales were expected to rise this year with new models.þþMany investors point out that the company's stock price remains well below its level at the time of the deal for Chrysler in 1998.þþIn Frankfurt trading on Wednesday, DaimlerChrysler shares edged up 0.26 percent, to 34.59 euros. They have lost about a third of their value over the last five years. On the New York Stock Exchange, Daimler declined 10 cents, to $44.30.þþ
Source: NY Times
