Daimler Wants To Lead Small Premium Segment.

Luxury automaker approached by GM about a tie-up for small cars, Zetsche says.

June 14, 2010
FRANKFURT (Reuters) — Daimler AG wants to gain market leadership among premium vehicles in the small car segment as a way to overtake rivals BMW AG and Audi.

“We are market leaders with our S-, E- and C-class limousines. So it is obvious which market position we are due in the small premium car segment,” Zetsche told the Financial Times in an interview published on Monday.

“When it comes to revenues and profits, we are clearly leading BMW and Audi. This is the position that we want to maintain and expand,” he said.

Zetsche said Daimler was approached by General Motors Co. and was in talks with Volkswagen AG as well as Fiat S.p.A. about possible alliances before it decided to conclude a tie-up with Renault last month.

Zetsche said Daimler had spoken to Fiat, VW and BMW, and had also been approached by Japanese rivals and GM, among others.

“There has hardly been any carmaker that has not approached us. But we have come to the clear judgment that this [Renault] is definitely the best option,” the Daimler CEO said.

Renault, its partner Nissan Motor Co. and Daimler announced in April a broad strategic cooperation in the field of engine and vehicle development.

Daimler wants to reach an operating profit margin of 10 percent by the second half of 2012, the Financial Times reported