Hubertus Troska appointed to Daimler management board to revive sales growth in China

Article by Christian Andrei, on December 14, 2012

Hubertus Troska, a top executive in the trucks unit of Mercedes-Benz, will take over a recently made portfolio for China to enhance its business in this market (currently the largest in the world), according to Daimler. For some time, Daimler has not been having much success in improving its distribution networks in China.

It depended heavily on the regional deliveries of Mercedes cars, which declined by 6.6% to 16,876 units in November. In comparison, its German-based rivals have double-digit increases in auto sales in China and have widened their lead over Daimler when it comes to global sales. A statement was released by Daimler Chairman Manfred Bischoff, saying that the company is focused on China’s strategic value.

He added that the company continues to believe in the “great potential” in China for its business’ persistent growth and expansion. In a note published this week, Credit Suisse analyst David Arnold said that the appointment of Troska is a change that has long been needed.

He also wrote that Daimler’s operations in China have been “one of the major disappointments for markets." This move by Daimler is evidence of the rising competition among the top automakers in Germany to achieve more business in the country. Last June, VW appointed executive board member Jochem Heizmann to head a special portfolio to manage the future expansion in China.

Notably, VW is the first overseas car maker to enter China about 30 years ago. The 52-year-old Troska will take on the recently created position to serve as Daimler's eighth board member beginning on Thursday. He will also be responsible for all of Daimler's strategic and operating activities in China.

Troska, who has worked for Daimler for 24 years, has formerly managed the trucks division in Mexico and the U.S. and he has also served in Turkey for the Mercedes cars division. From 2003 to March 2005, he had overseen Mercedes' AMG high-performance unit. Troska also led Mercedes' Europe and Latin America trucks unit since April 2005.

Topics: daimler, china

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