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]