Filed under: Trends
DaimlerChrysler re-engineers management structure
DaimlerChrysler announced Tuesday that it was streamlining its global management and administrative functions to
improve efficiency and cut costs. Over the next three years, the company will reduce general and administrative
headcount by about 6,000 employees worldwide - reducing G&A staff by 20 percent overall (30 percent at management
levels).DaimlerChrysler's new Chairman, Dieter Zetsche, said the objective was "to create a lean, agile structure, with streamlined and stable processes." Many of the changes involve consolidation and centralization of functions such as finance and human resources.
Zetsche also promised to improve cooperation between the Mercedes Car Group and the Chrysler Group, while at the same time further strengthening brand identities. He pointed to Mercedes-Benz' contribution of its RWD expertise to Chrysler in the development of the 300C as an example. Other cross-company examples are DaimlerChrysler's two-mode hybrid development program (with BMW and GM), and collaboration on the BlueTec diesel program.
Overall savings of DaimlerChrysler's efficiency program are expected to be about $1.8 billion annually.
[Source: DaimlerChrysler]
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Reader Comments (Page 1 of 1)
iQuack 4:29PM (1/24/2006)
Good timing for DCX to announce its own "lean and mean" program.
With GM and Ford talking about little else than restructuring (again, and again, and again!), DCX might as well join the party so it won't look any more heartless than GM and Ford when it starts to dump redundancy wherever management can find it.
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crazy88since88 8:17PM (1/24/2006)
How come Ford had not done this?!?!?!?!?!?!?
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crazy88since88 8:21PM (1/24/2006)
How come Ford had not done this?!?!?!?!?!?!?
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crazy88since88 8:25PM (1/24/2006)
How come Ford had not done this?!?!?!?!?!?!?
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JZeke 8:24AM (1/25/2006)
Funny how DCX is the only one to come out with a big plan (first at any rate) that strives to actually better the company's processes through paring down. GM and Ford have instead taken the aggressive route without suggesting their way will actually improve the company.
Its like making a good sportscar, you can either arbitrairily cut weight from wherever and end up with a Pontiac Solstice - Good car, but still heavy in the wrong places; or you can systematically take out weight through measured process and end up with a Corvette C6 Z06 - Awesome car, standout performance.
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