Follow the Star

Those among us who’ve been watching the automotive industry can’t help but acknowledge it has been quite a tumultuous year, particularly for German carmakers where certain players are now facing gargantuan tasks in rebuilding and regaining investor and consumer confidence. One marque that is unfazed, however, is the brand with the three-pointed star. Mercedes-Benz needs no introduction in Malaysia. One of the most beloved car brands in the country, Mercedes has a long and cherished history and relationship here, dating back to the beginning of the 20th century. But it is towards the future that Mercedes has always looked, and spearheading its vision and drive is none other than Dr Dieter Zetsche, an industry legend – the ‘turnaround man’ – who has been credited with the brand’s significant upswing in product quality and market share as well as customer satisfaction since he took over the Daimler AG chairmanship in 2006.

BORN TO LEAD
Born in May 1953, in Istanbul, where his engineer father had been temporarily based, Zetsche is, without doubt, one of the best known CEOs in the world, and not just in the automotive industry. Add to that his height and distinctive handlebar moustache – not unlike Rich Uncle Pennybags, the official name of the mascot from the classic Monopoly board game – Zetsche certainly stands out in any crowd. Ask around about him and it’s also clear a few key traits will crop up: first, his razor-sharp intellect and, secondly, his tungsten-strong leadership skills.

We met recently at the 66th Internationale Automobil-Ausstellung (IAA) – Frankfurt’s biannual motor show, one of the largest of its kind in the world. It always feels extra special to be at the Messe Frankfurt as this fair, whose history dates back to 1897, is particularly known for its tradition of regularly introducing cutting-edge automotive concepts. For guests who’d attended Mercedes-Benz’s presentation at the show, it’s safe to say no one left disappointed as Zetsche dramatically unveiled the brand’s radical new concept car – the Concept IAA – which, at first glance, resembles the CLS, albeit one from the future. And, watching him win over the crowd with his effortless presentation and convincing delivery, it’s clear the brand ‘with the star’ has its very own star.

THE ROAD AHEAD
With Mercedes’ sales figures already breaking the one million unit mark in July this year, it’s pretty clear Christmas has come early to Zetsche and his team. But despite the more-than-pleasing numbers and double-digit growth over the past 12 months, he remains convinced the best time for Mercedes is “still ahead of us. The Mercedes of the future will drive not only with zero emissions, but also autonomously. It will be even safer, even more luxurious and fully networked. It will be a comfortable retreat between the office and home.” In the days to come, Zetsche would often refer to this as the “third space”.

Clearly, judging by the Concept IAA’s futuristic look, that’s the direction Zetsche has his sights trained on. “It’s called Industry 4.0,” he says, “and our sector is currently preoccupied with it. The recipe for success in vehicle development is, once again, Big Data. It’s quite simply ‘digitalisation’. In essence, it’s about nothing more and nothing less than the complete digitalisation of the entire value chain as complete data models lead to shorter development times, more precision and more performance. The ‘Digital Transformation’ is in full swing and Mercedes-Benz is changing from being an automaker to a networked mobility service provider.”

“I also don’t have to tell you how enormously digitalisation has changed the relationship between sender and recipient,” he adds. “This presents us with completely new possibilities for getting in contact with our customers – and them with us. Every day, more than half a million people interact with our brand via our social media presence alone.”

LIVE TO DRIVE
Sitting down to chat in the interviewbereich of Mercedes’ cavernous hall within Messe Frankfurt, I noticed it came complete with its own StarBar and was spread out over multiple levels, each showcasing various makes and models in a mildly undulating helix-like configuration that brings to mind New York’s Guggenheim or, closer to the mark, the brand’s excellent automobile museum in Stuttgart.

Having doffed his jacket, dressed simply in a pale blue shirt, dark trousers and accented only by an elegant IWC timepiece on his wrist, Zetsche is as lean and sharp as he looks, despite having completed back-to-back presentations as well as innumerable media interviews. In a way, Zetsche is a reflection of Mercedes: a physical machine engineered for excellence.

“‘Car nut’ describes me well,” he laughs. “I enjoy every second I can afford to drive cars myself. But, having said that, I must stress it doesn’t contradict with our development of autonomous cars.” Even during his university days (Zetsche studied electrical engineering at the University of Karlsruhe, before following up on it with a doctorate in engineering from the University of Paderborn), Zetsche remembers being smitten by Mercedes cars, the iconic 300 SL in particular. When asked about his dream car wish list, he muses before saying: “My present list probably depends on my purse. I’d certainly go for the S-Class Coupe but, if money was no object, I’d still go for the S-Class Coupe.

“And,” he adds with a grin, “for the record, I have fulfilled my dreams as far as the 300 SL is concerned.”

With several more months to go before the 2016 Formula One season kicks off, Zetsche can sit back and acknowledge that 2015 was a great year for Mercedes in its F1 forays, with the Constructors’ Championship title to defend. “Mercedes certainly has always been the brand related to motorsports. The first Mercedes was, in fact, a race car, so motorsports resonates strongly with us,” says Zetsche.

“Secondly, it ties in to the brand – both historically and at present. Mercedes is a brand for successful people and motorsports is all about competition! Thirdly, the technology required in motorsports revolves around efficiency and the recovery of energy, which also applies to us. So, there are many parallels – from technology to the attitude point of view. In this respect, F1 is a very effective marketing tool for us. And, after all, racing is also a state of mind.”

As to the development of a Mercedes supercar, Zetsche shrugs. “Not now, but who knows, in 2017? Anyway, there are so many car nuts in the company. Even if you don’t ask for a supercar, ideas will eventually develop,” he says wryly.

VEHICLES FOR LIFE
One area, though, that Zetsche is not sidelining is the increasingly important role of the female driver. “Obviously, many women own cars and participate strongly in the decision-making behind car purchases. And, of course, it is important that our brand and products appeal as much to women as they do to men,” he observes. “So, naturally, it is a major initiative for us, not to create cars that are made specifically for women – which is something I think they wouldn’t want anyway – but to focus more on communication. Historically, Mercedes is perceived as a masculine brand. So, we want to communicate and engage better with our women clients – through Internet contact, magazines and conversations. Our new offering, ‘She’s Mercedes’ (a digital platform comprising networking events and a print magazine), for instance, specifically addresses the individual wishes of our female customers.”

On the future role automobiles will play in life, Zetsche believes “from now until 2050, the notion of individual mobility – the liberty of changing location at will – is basic and will survive the next 35 years easily. Technology has changed the way we move – in the past and perhaps so in the future.

“But,” he adds confidently, “we don’t have to wait 35 years for autonomous driving… although the car owner will still very much be in control. Definitely we will have even more possibilities to utilise the automobile as the third space between the home and office. What we will work towards is making this third space more desirable.”

A BUSINESS WITH HEART AND SOUL
It would also be remiss if the topic of the refugee crisis in Europe was not broached at all during IAA 2015. Certainly, there has been no shortage of press on the situation. What is interesting, however, is the positive outlook put forward by a slew of highly-respected publications, including

The Washington Post, which commented how the crisis could actually be a boon for Germany, with its rapidly greying population and low birthrate. It is a view Zetsche shares, and one he spoke out on forthrightly and honestly.

“Some people believe that immigration endangers a country’s future. I’m convinced the opposite is the case,” he had told a packed audience on the eve of the motor show’s opening. “Taking in more than 800,000 people who need our help is, undoubtedly, a Herculean task for Germany. But, in the best-case scenario, it can also be a foundation for the next German economic miracle – just like how the millions of guest workers were for us in the 1950s and 60s.” Asking the crowd to look towards Silicon Valley as an example, tartly observing how the ancestors of Elon Musk, Sergey Brin and Jerry Yang certainly didn’t arrive in America on the Mayflower, Zetsche fires another salvo, stating how he read recently that “a quarter of America’s fastest-growing companies of the last few years were founded by immigrants”.

“I’m not saying that everybody coming to Europe today is a brilliant engineer, mechanic or entrepreneur. Obviously not. But many are extremely well-educated. And I believe that anybody who leaves behind their entire life is highly motivated to learn and to work here in order to build themselves a new life… with us. These are exactly the sort of people we are looking for at Mercedes and everywhere across Germany. Of course, the human aspect is the central one but our country, with its diminishing population, will be on the way down if we cannot convince people to come to us. This is as much about helping people in need as well as doing the right thing – for the country, the company and its shareholders.”

Never one to speak without an action plan in hand, Zetsche lets on that Daimler is already supporting communities in its home state of Baden-Wurttemberg in their efforts to shelter the refugees as well as provide much-needed financial aid, to the tune of EUR1million donated to the German newspaper Bild’s ‘We’re Helping’ project, followed by an internal staff fundraising initiative.

As Zetsche points out: “Anybody who knows the past isn’t allowed to turn refugees away. Anybody who sees the present can’t turn them away. Anybody who thinks about the future will not turn them away.” Looking ahead, it would seem then that the brand with the star is indeed enlightened. Follow it? After hearing these words, how could you not?