Re: DC to cut 6000 jobs

From: Bill Day (billday@otecom.net)
Date: Wed Jan 25 2006 - 05:08:48 EST


I guess that would be better then Ferd cutting 30k jobs over the next 6
years... and clsoing 14 plants...

On Tuesday January 24 2006 5:24 pm, Josh wrote:
> DaimlerChrysler to Eliminate 6,000 Jobs
>
> By DAVID McHUGH
> Associated Press Writer
> Published January 24, 2006, 10:04 AM CST
>
>
> BERLIN -- The automaker DaimlerChrysler AG said Tuesday that it would cut
> administrative staff by 20 percent worldwide over three years, dropping
> 6,000 jobs in order to save some $1.2 billion a year and make the company
> leaner and more profitable.
>
> CEO Dieter Zetsche said the streamlining would boost growth and profits by
> removing layers of management and improving cooperation between its
> divisions, especially Mercedes and Chrysler. Some 60 percent of the jobs
> to be cut would be in Germany, he said.
>
> "Our objective in taking these actions is to create a lean agile
> structure, with streamlined and stable processes that will unleash
> DaimlerChrysler's full potential," Zetsche said in a statement. "We're
> going to build on a strong product portfolio."
>
> The cuts would amount to 30 percent at the management level and would
> cover areas such as accounting, auditing, personnel and strategic
> planning. The downsizing would cost the company around $2.4 billion in
> restructuring costs from 2006 to the end of 2008.
>
> DaimlerChrysler shares gained more than 5 percent to 44.67 euros ($54.68)
> in Frankfurt trading. Its U.S. shares rose $2.46, or 4.7 percent, to
> $54.70 in morning trading on the New York Stock Exchange.
>
> The plan envisions elimination of administrative jobs that duplicate work
> at the corporate and production level, the company said. Underlining its
> emphasis on a sharper focus on manufacturing functions, top management
> will leave the landmark office tower in the Moehringen district of
> Stuttgart and move to offices at the production facilities in the city's
> Untertuerkheim district in order to be physically closer to the assembly
> line.
>
> The company's other headquarters will remain in Auburn Hills, Mich.
>
> The DaimlerChrysler announcement came a day after Ford Motor Co., the
> second biggest U.S. automaker, said it was cutting up to 30,000 jobs and
> closing 14 facilities by 2012. Ford had previously indicated it was
> cutting about 4,000 salaried positions by the end of the quarter.
>
> General Motors Corp., the world's biggest automaker, announced a
> restructuring plan in November that will shave its work force by 30,000
> and close 12 North American facilities.
>
> On Tuesday, Zetsche also promised closer cooperation between the Mercedes
> and Chrysler divisions, another step in the long process of integrating
> the company's German and American halves, combined by the merger of
> Daimler-Benz and Chrysler Corp. in 1998.
>
> But Zetsche said the company would resort to clearly defined "project
> houses" combining engineering talent from different divisions. As examples
> he cited the company's current effort to develop what it calls the world's
> cleanest diesel technology, BlueTec, involving commercial vehicles,
> Mercedes and Chrysler, or Chrysler's use of Mercedes' rear-wheel drive
> expertise on its successful 300C model.
>
> At the same time Zetsche vowed "a clear priority within this effort will
> continue to further strengthen brand identity" between the German and
> American brands.
>
> Further changes announced Tuesday include the reorganization of oversight
> of its commercial vehicles division, saying that it would be renamed the
> truck group and subdivided into a North American division including its
> Freightliner, Sterling and Thomas Built lines, and a Europe-Latin America
> division including Mercedes-Benz trucks.
>
> Meanwhile, financial results from the former commercial vehicles division
> bus and van businesses would now be reported separately.
>
> In another move, the company said its research and development activities
> and Mercedes division vehicle development would be under the combined
> oversight of Thomas Weber, a member of the company's top management board.
>
> The company noted that the management board itself has shrunk from 12 to
> nine members with already-announced changes including Zetsche's decision
> to combine his duties as top boss with running the company's Mercedes
> group. Zetsche headed the U.S. Chrysler division and then Mercedes before
> taking over the top job from Juergen Schrempp on Jan. 1.
>
>
>
> Copyright © 2006, The Associated Press

-- 

Bill Day

"A rich man isn't always wealthy, he just has all the love he can give and ever wanted.." http://counter.li.org #384146 284016



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