Werner Niefer, Called `Mr. Mercedes'

STUTTGART, Germany - Werner Niefer, the former chairman of Mercedes-Benz who started with the luxury car-making company as an apprentice and rose through the ranks to become chairman, died yesterday of complications following a lung-cancer operation. He was 65.

Mr. Niefer, who retired in May after 50 years with Mercedes-Benz, began as an apprentice toolmaker with the company in April 1943.

Known as "Mr. Mercedes," he oversaw development of new technology and the company's expansion to produce high-performance motors for commercial and military use.

Mr. Niefer joined the board of directors of parent company Daimler-Benz in 1976, and in May 1989 became chairman of Mercedes-Benz.

Known throughout the industry as a top organizer, the jovial Mr. Niefer also had his share of controversy during his long career.

In May 1990 he was involved in an accident in Rome while driving a bus, seriously injuring a woman tourist. He was fined $50,000 in that case.

In 1991 he faced charges that Mercedes-Benz was involved in illegal export of military equipment to the Middle East, but the allegations were never proved.