DaimlerChrysler Reorganizes: Truck Divisions Merge, Powersystems Disappears

FRANKFURT, Germany June 30, 2003; The AP reported that DaimlerChrysler AG on Monday announced a reorganization of its commercial vehicles division that will put product development under a single management team and break up its engines and parts business.

At present, new vehicle development at the German-U.S. automaker's Freightliner and Mercedes-Benz commercial vehicles units is run separately.

"The new development unit brings together the expertise of all the truck development units within the group and synchronizes their activities," commercial vehicles head Eckhard Cordes said in a statement.

The division also will break up its Powersystems business, which groups engine production by its Detroit Diesel, Mercedes-Benz and MTU units as well as production of transmission, axles and steering systems, the statement said.

Powersystems plants will be parceled out to the division's regional vehicle producers, the company said, and its parts will no longer be sold outside DaimlerChrysler. They will only supply the group's own vehicles "except for a few isolated exceptions."

The Powersystems division was formed in 2001 after DaimlerChrysler took over engine maker Detroit Diesel.

DaimlerChrysler's statement made no mention of any job reductions.