Porsche told us that they were going to invest back into the company rather than pay higher dividends. Now they're investing in one of the least profitable car companies in Europe.

After all these years of suffering, why spin it off?

Until now, the Germans thought, 'We can make it with diesel.' They saw hybrid as a technology that was just filling a gap, ... Now they're seeing that, particularly in the U.S., they're missing a market.

This increases the likelihood that Zetsche will make major changes. He needs to break up all these networks that were built up over the 10 years of Schrempp. It's going to be a painful process.

Schrempp is one of the last dinosaurs of Germany Inc.. He represents a strategy of acquiring assets and building empires that just didn't work.

Until now, the Germans thought, 'We can make it with diesel.' They saw hybrid as a technology that was just filling a gap. Now they're seeing that, particularly in the U.S., they're missing a market.