Daimler has relieved German-born Ernst Lieb as President and CEO of Mercedes-Benz USA in a move that has many insiders wondering: What did he do wrong?

In a terse statement, the German auto giant said Lieb, 56, had been "relieved of his duties" effective immediately, and that the group's chief financial officer, Herbert Werner, would replace him until further notice.

The company declined to provide any further comment on why it forced out the top salesman in one its key markets.

Lieb has worked for Daimler for 36 years. He took charge of US sales and marketing for the Mercedes-Benz brand in September 2006 and steered the American unit down a road of steady growth – despite tough economic conditions.

Luxury car leader

In the United States, Mercedes went from being the number three luxury brand in 2008 to the number two slot in 2009. It claimed the top spot in the first three quarters of this year, overtaking Toyota's Lexus brand, according to AutoData.

In September alone the US unit, which is based in Montvale, New Jersey, sold nearly 24,000 cars, up 15.6 percent from the same period a year earlier.

Joe Phillippi, president of AutoTrends Consulting, said the ouster made no sense based on sales figures or marketing performance: "There's no rhyme or reason from a business perspective."

The United States is not only one of the most important markets for Mercedes, the premium carmaker also produces most of its sports utility vehicles in a factory in the southern state of Alabama.

Author: John Blau (AP, dpa, Reuters)
Editor: Sam Edmonds