Daimler brings Bernhard back into top management

Wolfgang Bernhard, a veteran in the German automotive industry, is due to head production at Daimler's Mercedes-Benz Cars unit and become a board member just under a year after his return to the carmaker.

Daimler said on Friday it planned to enlarge the management board but did not give details about the fate of Rainer Schmueckle whom Bernhard will replace.

Daimler only said it was in discussion with Schmueckle.

Manager Magazin, quoting unnamed company sources, reported Schmueckle was leaving the company.

Bernhard now heads Daimler's low-profile vans business -- a job he took on in April last year after a stint at Volkswagen.

The move was seen as a stepping stone back into the executive ranks although his reputation as a cost killer has soured relations with Germany's organized labor.

Bernhard was due to assume responsibility of Mercedes in 2004 before unions helped end his career at the company. He was Daimler Chief Executive Dieter Zetsche's right-hand man at Chrysler before Daimler sold its U.S. unit.

Schmueckle, who has been credited with successful restructuring programs, has also come under fire from the unions.