Plans to slash and restructure components of DaimlerChrysler AG were approved by the supervisory board Friday Feb. 26. Steps to return the under performers to profitability are to be made public Monday, Feb. 26.
They are expected to include:
* A timetable for the turnaround of DaimlerChrysler Corp. and financial details including fourth quarter losses more than double the $512 million lost in the third quarter. Restructuring charges as high as $3 billion will be detailed in the financial report.
* A management shakeup including a new executive automotive committee to oversee, Mercedes-Benz, and commercial vehicles. It would be led by DC Chairman Juergen Schrempp and include Juergen Hubbert (head of Mercedes-Benz/Smart), Dieter Zetsche (DCC president), Eckhard Cordes (head of commercial vehicles) and Manfred Bischoff (representing DC’s 34% stake in Mitsubishi Motors Corp.).
* An announcement bythat it will eliminate 10% of its 65,000 employees, close a car plant in Nagoya, Japan, cut parts and material costs by 30%, and pare the number of passenger car models from 24 to closer to 14. Some of that is tied to increased platform sharing with the Group in the future.
Personnel changes are also underway leading up to the Feb. 28 deadline for salaried workers to accept early retirement incentives, Chief economist W. Van Bussmann, 59, will leave and is expected to be replaced by colleague Van Jolisant.
Joining the company as executive vice president of global sales and marketing is Jim Schroer, 49, formerMotor Co. global marketing manager, to fill the vacancy left by Theodor Cunningham, let go in November.
George Murphy, 45, leavesmarketing to become senior vice president-global brand marketing, replacing the retiring Arthur Liebler. Gary Dilts (formerly on the e-Connect platform team) is named senior vice president-sales and field service. He replaces retiring John MacDonald. Mr. Murphy and Mr. Dilts report to Mr. Schroer, as well as newly appointed Thomas Hausch, 35, to head international sales and marketing. He comes from Mercedes-Benz.
Joseph Chao leaves a senior position overseeing quality forCorp. to become DCC’s vice president-platform advance manufacturing engineering.