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DaimlerChrysler to announce shake-up

DaimlerChrysler is today expected to announce a major global reorganisation in manufacturing and product development.

Some production will shift to Mitsubishi, in which DC has a 34% stake, according to reports in the German magazine Der Speigel and the Wall Street Journal. A deal is said to have been signed in Tokyo last week.

Chrysler will take responsibility for future medium models in the US, with Mitsubishi developing compact cars, according to the reports.

Four Chrysler plants - in the US, Canada, Mexico and Brazil - are set to close with the loss of 20/25,000 jobs. DaimlerChrysler could make massive savings through such a ruthless global rethink. The board is under immense pressure from major shareholders to stem the losses at Chrysler.

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