As part of a larger reorganization designed to streamline DaimlerChrysler operations and reduce costs by 1.5 billion EUR per year, its Commercial Vehicles Division will now focus on commercial trucks as its core business and will operate under the name “Truck Group.”
Truck Group will be organized into:
· Trucks Europe/Latin America (Mercedes-Benz);
· Trucks NAFTA (Freightliner, Sterling and Thomas Built Buses);
· Mitsubishi Fuso Bus and Truck Corp.;
· Truck Product Creation.
“The new structure will create further synergies between the regional truck units and brands, and allow the Truck Group to accelerate its profit potential initiative called Global Excellence,” stated DaimlerChrysler in a news release.
The financial and operating results of Bus and Van operations will be reported in a new segment called Van, Bus, Others. The Bus business will report to the head of the Truck Group, and the Van business to the Mercedes Car Group.
Corporate functions will be consolidated throughout the parent company so that German board of management members will relocate to Stuttgart-Untertuekheim. This means the DaimlerChrysler headquarters function will be located in Stuttgart-Untertuekheim and Auburn Hills, MI. The consolidation will result in a cut of 6,000 administrative jobs across global operations.
The new management model will take three years to complete, DaimlerChrysler said.