CHIBA — The recent breakup of Daimler and Chrysler, whose stunning marriage in 1998 was intended to achieve economies of scale, resulted instead in reduced production on both sides.
Annual production at Daimler, which completed the separation in August and officially dropped Chrysler from its name earlier this month, will drop by nearly half, but Daimler AG Chief Executive Officer Dieter Zetsche said Wednesday the automaker can be successful even without high volume.
"Certainly, the economy of scale is one aspect which helps profitability, especially in the volume segment, but (it's not a decisive factor for) the premium segment," Zetsche told reporters at the 40th Tokyo Motor Show, which opened to the press Wednesday.