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]