Mercedes USA CEO Dietmar Exler Discusses the Company’s U.S. Strategy for Success

Since being named president and CEO of the best-selling luxury brand in America in early 2016, Mercedes-Benz’s Dietmar Exler has emerged as an important spokesman for the premium-segment group, which also includes archrivals BMW and Audi.

German auto companies operating in the U.S. started 2017 keeping their heads down, posting record sales, making great vehicles here—and hoping to stay out of President Trump’s crosshairs on trade issues. However, after America’s president said that Germany was “very bad” for flooding the U.S. with cars and posting a record trade surplus in 2016 on his trip to Europe in May, they seemed to give up on lying low. Through a trade group, a group of foreign automakers responded with a television commercial touting their American-made vehicles.

Since being named president and CEO of the best-selling luxury brand in America in early 2016, Mercedes-Benz’s Dietmar Exler has emerged as an important spokesman for the premium-segment group, which also includes archrivals BMW and Audi. The 49-year-old leader has emphasized improving the brand’s relationships with dealers, for example.

Before Trump’s trip and remarks, Exler talked with Chief Executive Contributing Editor Dale Buss about the challenges of heading up the sales, marketing and administrative aspects at the German-American hybrid. Here are excerpts from their conversation.

Q: Congratulations on your recent U.S. success. Can you build on it?
A: We had a great 2016, but in 2017, that doesn’t mean much per se. What it does mean is that we are focusing on the right things and what we do resonates with customers. We still have the youngest, freshest product lineup in the industry. And we continue to focus on the customer experience with dealers and how we can provide the best one for them.

“Create effective new channels for communication between top management and employees, and with key partners.”

The Mercedes brand is doing well in the big shift in American consumer preferences toward SUVs. Yes, we’re celebrating 20 years of SUVs; it’s been pretty much a success story. Back then our first one was called M Class. No one was really sure how it would turn out. But now the [successor, renamed] GLE is shaping the segment.

Q: Your parent, Daimler, employs more than 3,500 people making GLEs and other SUVs in Vance, Alabama. Will the company be expanding your production in the U.S. somehow?
A: I can’t share our long-term production strategy. We’re a global company, producing all around the globe. We produce in Alabama right now, and we’re doing a heck of a job to squeeze more than is theoretically possible out of production down there.

Q: How important is it for Mercedes-Benz and your brand that some of your vehicles—in this case, some of your best SUVs—be made in the U.S.?
A: That’s a difficult question to answer. The industry data I’ve seen, by the Automotive Alliance in Washington, indicates that for the vast majority of American consumers, “made in the U.S” is important—but not as important as reliability or functionality.

Actually, in Alabama last year, we made more than 310,000 cars, and we sold 340,000 cars in the U.S. overall. So from that perspective, a very high percentage is actually made in the U.S. And what we make in Alabama isn’t at a “knock-down” facility. They all have enough U.S. content to qualify with official corporate and government guidelines as being made in the U.S.

Q: The company has caused quite a stir by moving its headquarters from New Jersey to near Atlanta, where you’re building a new facility. You were part of that decision before you actually became CEO early last year. What have you learned about how to move a headquarters?
A: We have about 500 people here right now; 300 are new and 200 have been with Mercedes and transferred. You’d better have your act together regarding the culture you want to create, or the 300 new people will create it for you. For example, we pushed for a paperless office five or six years ago, and it didn’t quite work. But when we came [to Atlanta] to a temporary building, we didn’t have storage and we had to go paperless. And it worked because 300 people didn’t know any different. We also are building a much more communications-focused culture than before.

We ask honestly critical questions of our people to push ourselves forward, and by the same token, their feedback is very direct.


EXLER’S KEY PRINCIPLES

  • Don’t rest on your laurels—but use a lead to build a bigger lead.
  • Leverage opportunities to build the culture you want your company to have.
  • Create effective new channels for communication between top management and employees, and with key partners.

MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.