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Daimler annual General meeting: the revolt of the investor economy

Ola Källenius has to expect at its first annual General meeting as group CEO with a lot of criticism. Important shareholder representatives do not want to relieve the Executive Board and the Supervisory Board.

Daimler chief Ola Källenius is an active racing Fan. In this respect one can assume that it enjoys the 51-Year-old, when a stiff breeze in the face, blows. But Wednesday could wish for, the Swede, maybe with a little less “Headwinds”, a word that Källenius in his smart Business-Denglisch often repeated. With a strong headwind, he should expect on his first meeting as Chairman of the Board, even if it is only virtually via video conference. The Fund management company Union Investment intends to refuse the management Board and the Supervisory Board for the discharge. “Daimler is a restructuring case,” says Janne Werning of the Union.

Also, Deka Investment announces to relieve the Board of Directors. And self Glass Lewis, an Advisor to institutional investors, recommends the shareholders to abstain in the vote on the discharge of the management Board and the Supervisory Board. The list of reasons for the dissatisfaction of the shareholders ‘ representatives is long.

“Wherever you look,” writes the Union,-the expert Werning, Daimler’m “weak image”: “share price, operating business, electro-mobility, carbon emissions, efficiency, margin”. Mercedes have slept through the transition to electric mobility “”. With 138 grams of CO₂ emissions per Kilometer Daimler was at the fleet emissions “in Europe,” Werning speaks of a “poverty certificate”.

Also the still unresolved question of Diesel-manipulation annoys him: “Contrary to all the assurances, it was in the diesel scandal, had to form Daimler in the past financial year, a provision of EUR 1.9 billion for ongoing administrative and judicial diesel procedure,” criticises Werning, “the white vest has spots.”

“We are looking at a lost year for Daimler and its shareholders.”

The numerous investigations in various countries against Daimler also called shareholder adviser Glass Lewis as the reason why he recommends to the shareholders for the discharge of the management Board and the Supervisory Board abstention.

“We look back on a lost year for Daimler and its shareholders,” said Ingo Speich, the Fund company Deka. “Three profit warnings show the depth of the crisis and the vulnerability of the business model. In the good years, was improperly invested.” He speaks of the “clean-up work of the Era of Zetsche”, which are now necessary. For this purpose, he said the current Management “a high level of trust”. This was not him, like “easy”, because Källenius as a former Board member for research and development for the “present miserable situation with responsible”. But at least the new Management will show “more to reality”.

Save wants to relieve the Board of Directors and the Supervisory Board discharge in respect of refuse. Reason: The support of supervisors would have the strategy of the old Board “for too long, and not the necessary consequences”. That Ex-CEO Zetsche 2021, after a two-year cool-down phase, as planned, the new Chairman of the Supervisory Board, rejects save: Zetsche was inappropriate, because the process many open right “to not resolve it without conflict of interest” be. In addition, Zetsche come “from the nitro world,” and stand “for a lot of late shift to the electric age.” Save: “The good old time is over and will not come again, the is not immune to the Supervisory Board.”

Auto Analyst Frank Schwope of Nord LB is of the same opinion: “It would be very important that next year a Wind of change in the Supervisory Board.” Daimler residue to the US electric car manufacturer Tesla has increased recently, rather than reduced, says Schwope: “While Tesla is riding his production massively high, and in two years the million threshold will crack, it is still questionable when Daimler notable piece will achieve the numbers.” The group has announced a large electric-Offensive, but only at a snail’s pace on the spot: most Recently, he had to temporarily stop the sale of E-models in the Smart and A-class, because the production of the demand not met. Parallel Källenius, fights against the consequences of the Corona-crisis. Hardly any sales, hardly any production, hardly any gains.

“The Board wants to the structures ran.”

In view of this intensification of the already tense situation of the Daimler works Council, proposed in a circular to the employees alert. “Even if the short-time work will be decreasing, the intention of the Board to reduce the fixed costs and change processes,” writes works Council chief Michael Brecht, “that’s why the Board wants to also to the structures and ran.” Even before Corona Källenius, the chubby administration had decreed a massive austerity program. This could now be extended to the works, fears Brecht – not least because people will hold to Corona with car purchases back. Depending on the development of the demand could not be ruled out”,” writes Brecht, that the personnel actions “can also extend to the areas of production”.

This fits in with that Källenius has announced this week at an Online event of the IG metal in General, “drastic” pay cuts in the auto industry: “The aftermath of Covid is to painful adjustments,” he said. The pandemic will force all manufacturers to massive restructuring. A salary waiver was necessary in order to protect the financial situation of the corporations and to secure the investment in the technologies of the future. It sounds like he would be able to plan additional cuts in the 300 000 employees and prepare them. The austerity program’s “Move” was so far, that by 2022 “at least 10,000” employees and 1.4 billion Euro in personnel costs can be saved.

14 months after he took office, Källenius is tirelessly the group to rebuild. The past two weeks, was made clear: As he put it, the cooperation with BMW on Autonomous Driving on ice and announced soon after the new Partner Nvidia. Then he announced the start of battery cell manufacturer Farasis. And on the same day he put the sale plans for the factory in Hambach, France. He shows the shareholders that he is doing much to bring that lame dick ship Daimler back on track in the direction of the future.

But in spite of all the maneuvers, the share price moved since Källenius’ office, down in addition, driven by Corona. The dividend was even deleted from 3.25 euros to 90 cents together. Anyone who thinks that this will upset the shareholders, is deceptive, however. If it were up to Janne Werning of Union Investment, one should abandon the group completely to a dividend: “The money should invest in Daimler prefer to stay in eco-friendly drives.”

Jerry Rolon
Jerry Rolonhttps://etrendystock.com/
After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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