. Headcount Reductions at Mercedes Car Group in
Germany
Reductions of 8,500
jobs at Mercedes Car Group in Germany
Charges of €950
million for DaimlerChrysler are to be compensated
Earnings outlook 2005
remains unchanged
Stuttgart - The Board of
Management of DaimlerChrysler AG has set a reduction target of 8,500 jobs
for the Mercedes Car Group Business Division. The Supervisory Board has
authorized the Board of Management for the provision of the required
funds.
The headcount reductions are
to be achieved in the course of the next twelve months by means of
voluntary termination agreements. These headcount reductions are
indispensable. They will contribute to significant improvements in the
competitiveness of Mercedes-Benz through an increase in productivity.
This
and the attractive Mercedes-Benz product range are two major requirements
for the long-term success of Mercedes Car Group. The measures will also
contribute to the sustained safeguarding of production at the location
Germany.
DaimlerChrysler continues to
stand by the "Future Safeguarding 2012" agreement signed in 2004
without reservations; in the case of headcount restructuring measures, the
agreement provides for voluntary terminations as a first step. All
arrangements of the agreement negotiated with the employee representatives
are being implemented on a consistent basis.
The decision of the Board of
Management and the Supervisory Board will lead to charges of €950
million. The major portion of the charges will be posted in the fourth
quarter of 2005. The charges are to be compensated by extraordinary income
as well as from improvements in the ongoing operative business. Therefore,
the profit outlook for the Group for the year 2005 remains unchanged:
DaimlerChrysler continues to expect a slight increase in operating profit
compared with the prior year (€5.8 billion), excluding charges related
to the realignment of the smart business model.
