Auto Industry News SampleJan 31, 2006 15:00:05
DAIMLERCHRYSLER AG: Belies Report of Truck Unit Spin-0ff
Stuttgart, GERMANY (SunStream News) -- DaimlerChrysler AG has brushed aside a report that it mulls spinning off its truck unit.
The report is "speculation that lacks any foundation," Thomas Froehlich, a spokesman for the carmaker, said in a phone interview with Bloomberg News. "The unit is an 'integrated' part of the company," he added.
Mr. Froehlich was referring to a report by Focus magazine which said that DaimlerChrysler may dispose of the unit as part of its restructuring measures. Focus did not reveal sources of the information.
According to AFX News, Focus also ran in its report that at least one management board member will be dropped in the following months. However, AFX quoted a DaimlerChrysler spokesman as saying this was "pure speculation."
Earlier, DaimlerChrysler revealed it will drop 20% of its administrative staff in three years. The move, which is aimed at improving the carmaker's competitiveness and profitability, will result to a loss of 6,000 workers and annual savings of US$1.2 billion.
The carmaker has also unveiled plans to reduce the size of its management board to nine from 12 members, and to restructure its commercial vehicles business that includes renaming the division the Truck group and subdividing it into North American operations and Europe-Latin American division.
CONTACT: DAIMLERCHRYSLER AG
70546 Stuttgart, Germany
Phone: +49 711 17 0
Fax: +49 711 17 22244
Web site: http://www.daimlerchrysler.com/ss/tcreur
Source: Troubled Company News -- Europe
Publication Date: 2006-01-31
COY: DCX.GR
IND: AUT
GEO: e-ger
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