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Old January 24th, 2006, 09:08 AM   #1
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Default DaimlerChrysler to eliminate 6000 jobs

DaimlerChrysler to Eliminate 6,000 Jobs By DAVID McHUGH, Associated Press Writer 40 minutes ago


BERLIN - 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.
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Old January 24th, 2006, 09:11 AM   #2
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At 1 Billion even that is an average of $166,666 pr year Salary.
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Old January 24th, 2006, 09:12 AM   #3
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At 1 Billion even that is an average of $166,666 pr year Salary.
so what are you saying? The save more than base salary, they save benefits, overhead from closing/combining offices etc....
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Old January 24th, 2006, 09:13 AM   #4
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At 1 Billion even that is an average of $166,666 pr year Salary.
I agree, theres so many middle managers we trip over them around our shop. I have never seen it so bad. who knows if they get rid of enough of these managers the BU people might see a profit sharing check again
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Old January 24th, 2006, 09:14 AM   #5
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that doesn't neam the people will be cost are beig paid 167K..... Just means they will save that much to have the person gone
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Old January 24th, 2006, 09:22 AM   #6
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the other thing you don't consider, if the person they got rid of made $166,000 a year they also got huge profit sharing checks. most of the grade band 94's and above got their full wage as profit sharing and in some cases it was double.
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Old January 24th, 2006, 10:53 AM   #7
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I know if my DCX manager reaches his targets for the year he ends up with close to a 70% bonus, or at least for the last 3 years he has. So not only is it his base salary +benfits, factor in another 100k for a bonus.
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Old January 24th, 2006, 10:54 AM   #8
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that doesn't neam the people will be cost are beig paid 167K..... Just means they will save that much to have the person gone
exactly correct bones and Yetti is missing the point!!
It cost money and time to put in and orcistrate buisness around other personnel, it takes people to do the accounting, finance, managment of managment, it takes building space, it takes other office infrastructure to support workers, heck i think the cost for a computer workstation per month for an employee is some where around $110 per month, thats not including the network support and infrastructure behind that.

These are the Benz employees, anyone who is in DCX knows that Benz has been struggling and basically feeding off of the American operations for a year+





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Old January 24th, 2006, 10:57 AM   #9
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I know if my DCX manager reaches his targets for the year he ends up with close to a 70% bonus, or at least for the last 3 years he has. So not only is it his base salary +benfits, factor in another 100k for a bonus.
So whats wrong with a manager exceding his expectations and being rewarded for it?

Your DCX manager is part of the American Operations, that has nothing to do with the shortcommings of DCX's European Operations.

Just like Ford and GM, their Over seas operations are doing good, just the american operations are not doing hot.



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Old January 24th, 2006, 11:01 AM   #10
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Originally Posted by Yetti
the other thing you don't consider, if the person they got rid of made $166,000 a year they also got huge profit sharing checks. most of the grade band 94's and above got their full wage as profit sharing and in some cases it was double.
Benz i believe doesn't have the same grad bands, my father is a 92 last time i checked at DCX, thats farely up there, a grade band 94 which many people don't know are what Platform managers? Plant Managers, i mean they are the big cheese, they are not a middle management position, they have a lot of say.


Yetti, what platform you working on??



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Old January 24th, 2006, 01:16 PM   #11
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I do work for everyone. they dump all they're junk at my shop.
grade 91-92's here are engineers & forman. so they won't be affected as bad as 93-95's witch are the middle managers. they have the ability to make or break a dept.
as for me not getting it, I see the crap that goes on withen the managment circles and they are as cutthroat as they come. seen alot of good guys leave my dept. because of politics withen the groups.
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Old January 24th, 2006, 06:22 PM   #12
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Quote:
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, my father is a 92 last time i checked at DCX, thats farely up there, a grade band 94 which many people don't know are what Platform managers? Plant Managers, i mean they are the big cheese, they are not a middle management position, they have a lot of say.


Yetti, what platform you working on??



....

In the Small Car Platform, 92's are engineers, like me, 93's are supervisors, 94's are managers, then there is the director level. I would agree that 94's sure do have a lot to say, but they are not the big cheese, at least not in this platform. We have at least 4 or 5 93/94 that all do the exact same job. They are all in charge of making sure the flowcharts for certain topics are up to date....

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Old January 24th, 2006, 07:44 PM   #13
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I think this is the first time I ever remember seeing a company say they were cutting out a bunch of "administrative jobs". Not that i want to see anyone lose thier job but I'm glad to see that what thier cutting is "overhead"
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Old January 24th, 2006, 09:09 PM   #14
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In the Small Car Platform, 92's are engineers, like me, 93's are supervisors, 94's are managers, then there is the director level. I would agree that 94's sure do have a lot to say, but they are not the big cheese, at least not in this platform. We have at least 4 or 5 93/94 that all do the exact same job. They are all in charge of making sure the flowcharts for certain topics are up to date....
Was the same when I worked there, small car platform under mattingly, and then over to Jeep with Ralf Voss... 92s were engineers.
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Old January 24th, 2006, 09:10 PM   #15
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I think this is the first time I ever remember seeing a company say they were cutting out a bunch of "administrative jobs". Not that i want to see anyone lose thier job but I'm glad to see that what thier cutting is "overhead"
Its also primarily Germany, I believe. MB has not done well under Shrimpy... I really liked Zetsche, he was a good guy and understood how to lead.
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