Mercedes Job Cuts Moving Quicker Than Expected

Posted by www.eMercedesBenz.com on January 5, 2006 at 11:30 AM CST

DaimlerChrysler is reporting today that the previously planned job  
cuts at the Mercedes Car Group are going better than expected.   
Already, approximately 5,000 employess have signed retirement  
contracts or agreed to leave the company.

The voluntary redundancy program, which aims to reduce the German  
workforce by 8,500 employees, began in October 2005 and was expected  
to take 12 months to complete.  According to Günther Fleig,  
DaimlerChrysler Board of Management Member for Human Resources and  
Labor Relations Director: “Our expectations have been confirmed.  
Following this interim status, we continue to consider it realistic  
that we will successfully achieve the targeted personnel reductions."

Despite the early success of the planned job cuts, DaimlerChrysler  
has still failed to comment as to whether or not we can expect to see  
any additional voluntary redundancy programs coming in the near future.

We'll keep you posted if we hear anything new.  For more info, you  
can check out the full press release at eMercedesBenz by clicking the  
link below.

http://emercedesbenz.com/Jan06/05MercedesJobCutsMovingQuick.html

OFFICIAL PRESS RELEASE

Interim Status Of Personnel-Reduction Program At The Mercedes Car Group

Stuttgart, Jan 05, 2006

DaimlerChrysler AG has drawn up an interim status of the voluntary  
personnel-reduction program at the Mercedes Car Group. By the end of  
the year 2005, approximately 5,000 employees of the Mercedes Car  
Group had signed retirement contracts or had already left the  
company. This means that around 60% of the twelve-month target has  
been achieved just three months after starting the voluntary program.  
Some 1,100 of the contracts are for early retirement. The cost of  
implementing the program is within the specified financial scope.

The program of voluntary personnel reductions, which started in  
October 2005, has the goal of reducing the workforce of the Mercedes  
Car Group in Germany by 8,500 jobs by the end of September 2006.

Günther Fleig, DaimlerChrysler Board of Management Member for Human  
Resources and Labor Relations Director, stated: “Our expectations  
have been confirmed. Following this interim status, we continue to  
consider it realistic that we will successfully achieve the targeted  
personnel reductions on the basis of the employment pact ‘Future  
Safeguarding 2012’”.

According to Mr. Fleig, the personnel-reduction program must continue  
unchanged in order to improve the competitiveness of the Mercedes Car  
Group. “Although the processes are not easy for all of the persons  
involved, this voluntary program is the best way to reduce the size  
of the workforce in a socially acceptable manner. The high rate of  
participation demonstrates the acceptance of the program.”

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www.eMercedesBenz.com