Daimler hunts high-growth businesses-CEO in paper

FRANKFURT, May 9 (Reuters) - Daimler AG (DAIGn.DE: Quote, Profile, Research) is on the lookout for businesses it can tap to promote lucrative growth, Chief Executive Dieter Zetsche told a German newspaper, citing as possible examples battery technology and turbochargers.

A small team of executives has been working for half a year to scout out new business ideas to complement its core automotive business, Zetsche said in an interview published on the Stuttgarter Zeitung's website on Friday.

The new businesses must have a global market potential of at least 1 billion euros ($1.55 billion), offer Daimler alone a market of at least 100 million euros, grow at least 10 percent a year, and eventually generate 10 percent margins, he said.

It was too early to give more details, he said, but added he was keen to get more expertise on reducing vehicle emissions.

"Because electric powertrains are getting more and more important we are thinking about how we can expand our know-how in battery technology," he said, noting Daimler was ahead of rivals in lithium ion batteries and had many patents there.

"I could imagine getting into battery assembly as well, at least for small volumes," he was quoted as saying, adding the same was true for electric motors. He suggested Daimler could then provide other manufacturers with the new technology.

Flush with cash after selling a majority stake in U.S. arn Chrysler last year, Daimler this month bought a minority stake in diesel motor maker Tognum (TGMG.DE: Quote, Profile, Research) as a way to defend its ties with an important business partner.

Zetsche, who also heads the group's passenger car division, said the group had defined 10 areas in which Mercedes-Benz should be in first place -- including quality, safety, comfort and design -- or among the top three, as with productivity.

"What is new is that we want to become number one in customer satisfaction," he added, also emphasising the importance of being first in environmental technology.