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Posted: 1/24/2006 6:02:55 AM EDT
Layoffs not just for blue collar workers anymore.
Guess it's not just the union that is evil and causing American auto manufacturers to lose profits, management is to blame.

hosted.ap.org/dynamic/stories/G/GERMANY_DAIMLERCHRYSLER_CUTS?SITE=PAPOT&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2006-01-24-08-52-14

DaimlerChrysler to Eliminate 6,000 Jobs

By DAVID McHUGH
Associated Press Writer

BERLIN (AP) -- DaimlerChrysler AG will cut 6,000 administrative jobs, or one-fifth of its worldwide total, to save more than a billion dollars a year and make the big automaker leaner and simpler to run, the company said Tuesday.

CEO Dieter Zetsche said the streamlining, most of which would occur in Germany, would help boost growth and profits, and focus the company more closely on core production activities. He said it would remove management layers and improve cooperation between its divisions, especially Mercedes and Chrysler.

"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."

Administrative staff would be cut 20 percent over three years, saving some $1.2 billion a year, the company said. The cuts 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.

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.



Link Posted: 1/24/2006 6:06:33 AM EDT

Originally Posted By Dance:
Guess it's not just the union that is evil and causing American auto manufacturers to lose profits




No! It's the SHITTY EXCUSES for automobiles that they produce.
Link Posted: 1/24/2006 6:06:46 AM EDT
I agree with them that this will be a good move, cut down on the bueroccy , and become a bit more HSLD.
Link Posted: 1/24/2006 7:29:45 AM EDT

Originally Posted By demigod:

Originally Posted By Dance:
Guess it's not just the union that is evil and causing American auto manufacturers to lose profits




No! It's the SHITTY EXCUSES for automobiles that they produce.



Since when does Mercades build a shitty automobile?
Link Posted: 1/24/2006 7:36:35 AM EDT

Originally Posted By ArmdLbrl:

Originally Posted By demigod:

Originally Posted By Dance:
Guess it's not just the union that is evil and causing American auto manufacturers to lose profits




No! It's the SHITTY EXCUSES for automobiles that they produce.



Since when does Mercades build a shitty automobile?


I don't own a Mercedes, but if you look at the current year-end Consumer Reports on automotive reliability, the MBs some relability issue because they have many more black marks than they did in the past. I think someone has dropped the ball at MB.
Link Posted: 1/24/2006 7:41:40 AM EDT

Originally Posted By warlord:

Originally Posted By ArmdLbrl:

Originally Posted By demigod:

Originally Posted By Dance:
Guess it's not just the union that is evil and causing American auto manufacturers to lose profits




No! It's the SHITTY EXCUSES for automobiles that they produce.



Since when does Mercades build a shitty automobile?


I don't own a Mercedes, but if you look at the current year-end Consumer Reports on automotive reliability, the MBs some relability issue because they have many more black marks than they did in the past. I think someone has dropped the ball at MB.



I don't trust reader surveys any more than I trust "Which car is better" threads on arfcom.
Link Posted: 1/24/2006 7:48:19 AM EDT
SubnetMask: I am sure that these surveys are not exactly 110% "dead nuts on," but it they do take a lot of samples than you and I can get and would give you a better insight. Remember you're dealing with $20-$30,000 for a lower end vehicle and up. So far the survey has been dead on about the reliabilty of the Toy Camry and the Hondas.
Link Posted: 1/24/2006 7:52:13 AM EDT

Originally Posted By warlord:
SubnetMask: I am sure that these surveys are not exactly 110% "dead nuts on," but it they do take a lot of samples than you and I can get and would give you a better insight. Remember you're dealing with $20-$30,000 for a lower end vehicle and up. So far the survey has been dead on about the reliabilty of the Toy Camry and the Hondas.



I'd rather see fleet maintenence records. This needs a thread of it's own.
Link Posted: 1/24/2006 7:53:24 AM EDT

Originally Posted By ArmdLbrl:

Originally Posted By demigod:

Originally Posted By Dance:
Guess it's not just the union that is evil and causing American auto manufacturers to lose profits




No! It's the SHITTY EXCUSES for automobiles that they produce.



Since when does Mercades build a shitty automobile?


since they bought chrysler! seriously, their reliability and designs have gone downhill and chrysler's has gone up. chrysler is making some damn fine lookin' cars!

better they fire a few of their multimillion dollar vice presidents in charge of counting paperclips than real decent working folk (union or not).
Link Posted: 1/24/2006 8:01:58 AM EDT

Consumer Reports on automotive reliability

Their surveys, like the JD Powers one, deals with expectations. If someone has a single problem with their Mercedes, they typically are very negative on the survey. If someone, as proven by the high rating Powers gave the new Corvette, has many serious problems, but they're still happy with the car overall since they expected to have many problems before they bought it, it will get a good rating. I think there's a market for someone to do a survey that dealt with facts rather than feelings when it comes to new cars.z
Link Posted: 1/24/2006 8:07:57 AM EDT

Originally Posted By zoom:

Consumer Reports on automotive reliability

Their surveys, like the JD Powers one, deals with expectations. If someone has a single problem with their Mercedes, they typically are very negative on the survey. If someone, as proven by the high rating Powers gave the new Corvette, has many serious problems, but they're still happy with the car overall since they expected to have many problems before they bought it, it will get a good rating. I think there's a market for someone to do a survey that dealt with facts rather than feelings when it comes to new cars.z



Exactly, but I don't think a survey is the answer. It's prone to serious error. Additionaly, getting a respectable response rate is difficult. Maybe I should start another thread on this...
Link Posted: 1/24/2006 8:17:02 AM EDT

Originally Posted By Dance:
CEO Dieter Zetsche said the streamlining, most of which would occur in Germany,



It looks like places other than the US need streamlining.
Link Posted: 1/24/2006 8:19:16 AM EDT

Originally Posted By Dance:
Layoffs not just for blue collar workers anymore.
Guess it's not just the union that is evil and causing American auto manufacturers to lose profits, management is to blame.


CEO Dieter Zetsche said the streamlining, most of which would occur in Germany, would help boost growth and profits, and focus the company more closely on core production activities. He said it would remove management layers and improve cooperation between its divisions, especially Mercedes and Chrysler.






This is a "merger" issue. Today, DCX is smaller than the Chrysler Corporation it "bought". The Germans did a damn good job of taking an American corporation that was doing great, and shrinking it...
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