Re: DC to cut 6000 jobs

From: kerib@ptd.net
Date: Wed Jan 25 2006 - 11:20:15 EST


Cuts are mostly white collar and in Germany.

Andy Levy <andy.levy@gmail.com> said:

>
> Gotta wonder though how much of those are merely threats, hoping for
> political "concessions" to keep the plants open and jobs filled.
>
> All 3 US automakers really need to get their acts together though,
> building quality cars that people actually want, at competetive
> prices. And do some research before launching a product - last I
> heard the Ford Freestyle was slated to end after the '07 model year,
> and it was introduced as an '06! How much money did they waste there
> (granted, it's on the Five Hundred platform, but still...)?
>
> On 1/25/06, Bill Day <billday@otecom.net> wrote:
> >
> > 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 (c) 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
> >
> >
>
>
> --
> Andy
> http://home.rochester.rr.com/alevy/
> ---
> Never tell people how to do things. Tell them what to do and they will
> surprise you with their ingenuity.
> -George S. Patton
>
>

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