LENGTH: 408 words
HEADLINE: DaimlerChrysler hit by more lawsuits, labor unrest
BYLINE: Earle Eldridge
BODY:
DaimlerChrysler's woes mounted Wednesday on two continents, two days after
it was sued by its third-largest shareholder.The troubles are
coming at a time of declining sales and mounting losses at Chrysler. New
developments:
* Two more lawsuits were filed claiming CEO Juergen Schrempp lied to
shareholders in 1998 when he said the merger of Chrysler and
Daimler-Benz was one of equals. The lawsuits allege he intended to run
Chrysler as a division of Daimler-Benz. The new lawsuits say
Schrempp "promised and assured" shareholders that an American Chrysler
management team would remain in charge of Chrysler after the
merger.
Since the merger, several top Chrysler executives have been forced out. Last
week, Dieter Zetsche, a German Daimler executive tapped by
Schrempp, became Chrysler's president. No. 3 shareholder Kirk Kerkorian sued
DaimlerChrysler on Monday, seeking $ 8 billion in
damages. DaimlerChrysler officials say the lawsuit lacks merit.
* Calls for Schrempp to resign intensified Wednesday both in Germany and the
USA. A German shareholder activist group says it plans to
submit a motion for Schrempp and other top DaimlerChrysler executives to
resign at the annual shareholders meeting in April. Meanwhile,
Seth Glickenhaus of the U.S. investment firm Glickenhaus & Co. says he plans
to file a shareholder lawsuit and wants Schrempp to resign.
"Unless one is running the Mafia, I would say you don't want a person who
lies on crucial and important matters," Glickenhaus said in
reference to Schrempp. "A grave, critical, crucial injustice has been done
to stockholders."
* Labor unions warned DaimlerChrysler that they are not willing to accept
changes in their contracts as a means for the new management
to cut costs. Canadian Auto Workers union President Buzz Hargrove met with
the new Chrysler management team Tuesday. Hargrove
said he told Zetsche that the union had a good relationship with former
Chrysler management and "now, all of a sudden, we can't find
anyone at the top level that has a good understanding of our relationship."
On Friday, Chrysler is expected to announce at least two more plant
shutdowns that will begin next week. Three plants shut down this week
to reduce inventory. The new shutdowns may include a Newark, Del., plant
that builds the Dodge Durango sport-utility vehicle, according to
plant employees. The Durango is Chrysler's fifth-best selling vehicle out of
29 models.
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Steven St.Laurent
Test Engineer
Test Branch, GSD, MCTSSA
MARCORSYSCOM, USMC
760-725-2506 (DSN 365-2506)
Work:mailto:stlaurents@mctssa.usmc.mil
Home:mailto:saint1958@home.com
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