Zetsche defends cuts, says Mercedes could learn from Chrysler
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[12/31/2005] BERLIN - New DaimlerChrysler AG CEO Dieter Zetsche defended job cuts at the company's Mercedes division, saying in an interview made available Saturday that the division could learn something about lean manufacturing from Chrysler Group.
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BERLIN - New DaimlerChrysler AG CEO Dieter Zetsche defended job cuts at the company's Mercedes division, saying in an interview made available Saturday that the division could learn something about lean manufacturing from Chrysler Group.
Zetsche told Der Spiegel weekly that the company had taken too long to acknowledge cost problems at Mercedes before it announced in September that it would cut 8,500 jobs there.
"We can't look past uncomfortable truths," Zetsche was quoted as saying. "Our costs are higher in all areas than those of our competitors."
The longer companies wait to solve problems, he said, "the more drastic the measures must be. Unfortunately, that is the case with us."
The former head of Chrysler Group was scheduled to take over from outgoing CEO Juergen Schrempp as the head of the automaker effective Sunday. At the same time, he will head the Mercedes division.
Zetsche, who successfully brought Chrysler back from a period of losses and layoffs with well-received new cars such as the 300C, said he advocated more intensive cooperation between Mercedes and Chrysler.
Zetsche told Der Spiegel weekly that the company had taken too long to acknowledge cost problems at Mercedes before it announced in September that it would cut 8,500 jobs there.
"We can't look past uncomfortable truths," Zetsche was quoted as saying. "Our costs are higher in all areas than those of our competitors."
The longer companies wait to solve problems, he said, "the more drastic the measures must be. Unfortunately, that is the case with us."
The former head of Chrysler Group was scheduled to take over from outgoing CEO Juergen Schrempp as the head of the automaker effective Sunday. At the same time, he will head the Mercedes division.
Zetsche, who successfully brought Chrysler back from a period of losses and layoffs with well-received new cars such as the 300C, said he advocated more intensive cooperation between Mercedes and Chrysler.
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