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DaimlerChrysler Slated to Cut 6,000 Jobs Worldwide

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Khatir Soltani
Rather, Zetsche is stating that reducing redundancies will allow its division to focus on what they do best, build
Zetsche is stating that reducing redundancies will allow its division to focus on what they do best, build cars and sell them. (Photo: DaimlerChrysler Canada)
cars and sell them.

"We want our divisions to concentrate on the automotive core processes - development, production and sales," added Zetsche.

While Auburn Hills' staff is being downsized, German board members, which are currently based in Stuttgart-Moehringen, will relocate in May 2006, along with their employees, to Stuttgart-Untertuerkheim, and with the move be closer to production facilities.

Along with the cuts comes a promise that Stuttgart will work more closely with Auburn Hills in the development of product, in another effort to reduce redundancies.

"Cooperation
While Zetsche promises Stuttgart will work more closely with AuburnHills in the development of products, like it did with certaincomponents in the Chrysler 300, Crossfire and Pacifica (shown), heavered that distinct brand identity remains "a clear priority". (Photo: Rob Rothwell, Canadian Auto Press)
between the Mercedes Car Group and the Chrysler Group will become markedly closer," Zetsche stated.

But what does this mean for the unique identities of Chrysler Group's brands, which are made up of Chrysler, Dodge and Jeep, and the many products that make up their individual lineups?

According to Zetsche, distinct brand identity remains "a clear priority".

And why mess with success, as the saying goes. Chrysler Group has been riding a wave of popularity thanks to cars like its 300C, Dodge Ram pickup, and others. New models, such as the Chrysler Aspen SUV, Dodge Caliber compact five-door and Jeep Compass compact crossover, introduced at the North American International Auto Show in Detroit only weeks ago, look to a bright future for the automaker, and concepts such as the popular Dodge Challenger
At the Detroit show, Chrysler Group CEO Tom LaSorda commented that the fate of Chrysler's "Corvette fighter", the Firepower, would be decided in the second quarter of 2006. (Photo: DaimlerChrysler Canada)
and last year's well-received Chrysler Firepower have created a stir that's likely not to disappear quickly.

At the Detroit show, Chrysler Group CEO Tom LaSorda commented that the fate of Chrysler's "Corvette fighter", the Firepower, would be decided in the second quarter of 2006.

"Firepower is on our agenda," stated LaSorda. "It is something that will come to me, probably sometime in the second quarter. We're looking at a lot of business cases and that is one of them."

The problem with Firepower is its extremely expensive chassis, shared with the $127,000 Dodge Viper. The LX chassis, which currently underpins the 300C, Dodge Charger, Dodge Magnum and Dodge Challenger concept,
The problem with Firepower is its extremely expensive chassis, shared with the $127,000 Dodge Viper.  (Photo: Trevor Hofmann, Canadian Auto Press)
the latter expected to reach production, may not work well for the low and lean two-seat Firepower. It is possible, however, with greater cooperation with Mercedes-Benz, that a more appropriate chassis could be sourced.

The 300, and other LX cars, borrowed chassis architecture, along with steering rack design, automatic transmission design, and other components, from Mercedes-Benz' previous-generation E-Class, a formula that gave Chrysler Group a well-engineered rear-drive platform featuring a fully-independent suspension system, as well as a five-speed automatic transmission that can handle the immense torque provided by its 5.7- and 6.1-litre HEMI V8 engines. The fit was ideal. The Crossfire, on the other hand, is almost 40 percent previous-generation Mercedes-Benz SLK, which made sense for a low volume, niche vehicle. DaimlerChrysler has said that it would never allow such a fully integrated product collaboration between the two brands again, but it is possible Zetsche, now running the automaker's global operations, thinks differently.
Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada