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Holden Announces Reorganization Of Operations of DaimlerChrysler

29 October 1999

Jim Holden Announces Reorganization Of Automotive Operations of DaimlerChrysler Corporation
    AUBURN HILLS, Mich., Oct. 29 -- DaimlerChrysler
today announced a sweeping reorganization of DaimlerChrysler Corporation's
automotive operations that will centralize product planning functions and
enhance overall product development capabilities.  The realignment is also
designed to re-establish a single manufacturing organization, and to solidify
the strategic alignment of Engineering platforms and Power Train Engineering.
    "After a year of working together, DaimlerChrysler has concluded that its
automotive businesses can best function as individual divisions of
DaimlerChrysler AG," said Jim Holden, President of DaimlerChrysler
Corporation.  "At the same time, we will continue to work aggressively with
our colleagues around the globe to achieve synergies anywhere and everywhere
we can and we will continue to look together for ways to improve our products
and operations at every level of the company.  There are almost limitless
opportunities in these areas that will become more apparent as we go forward."
    The enhanced organization announced today, supported by the recently
announced Automotive Council and Sales and Marketing Council, will continue to
bring fresh focus to the company's automotive businesses and further the
momentum built up in the integration process.  The role of the Automotive
Council is to drive integration opportunities and ensure cross-fertilization
of innovation, knowledge, technologies and ideas.  The Sales and Marketing
Council coordinates the worldwide Sales and Marketing Operations, ensuring a
consistent brand policy, intensifying customer focus and continuing to search
out new synergies.
    "But from an operational point of view, we believe the DaimlerChrysler
Corporation can make the greatest contribution to DaimlerChrysler worldwide by
intelligently managing the global business opportunities for our brands,"
Holden said.  "This reorganization recognizes this clarified direction and
allows us to get on with the business of growing DaimlerChrysler Corporation
on a total profit responsibility basis.  We think it represents the absolute
best of all worlds for everyone -- the company, our shareholders and our
employees.  It recognizes the critical nature of maintaining an appropriate
level of autonomy and responsibility for individual businesses."
    To get on with the future direction of the company, and to help lead the
company's brands into the 21st century, the following organizational
alignments were announced:
    Susan M. Cischke is appointed Senior Vice President - Regulatory Affairs
and Passenger Car Operations, reporting to Thomas C. Gale, Executive Vice
President - Product Development, Design and GM - Passenger Car Operations.
She will replace Ronald R. Boltz who will retire December 31.  Cischke had
been Vice President - Vehicle Certification, Compliance and Regulatory
Affairs.
    The following executives will report to Ms. Cischke:
    *  Mr. Gordon E. Allardyce, Director - Vehicle Certification Programs
    *  Mr. James M. Currin, Senior Manager - Product Analysis
    *  Mr. William R. Edwards, Senior Manager-Vehicle Safety & Emission
        Compliance
    *  Mr. Robert H. Goldenthal, Senior Manager - Vehicle Safety & Regulatory
        Affairs
    *  Mr. James J. Lyijynen, Vice President - Pollution Prevention,
        Compliance & Remediation
    *  Mr. Robert K. Manion, Director - Component Sales Program & MMC
        Operations
    *  Mr. Reginald R. Modlin, Director - Environmental & Energy Regulatory
        Planning
    *  Mr. Denis R. Root, Director - Regulatory Harmonization & Process
        Redesign

    Richard O. Schaum is appointed Senior Vice President - Platform
Engineering & Quality and General Manager - Power Train Operations.  He will
report to Mr. Gale for all matters pertaining to Platform Engineering and will
continue to report to Mr. Holden on issues regarding quality and Power Train.
He had been Senior Vice President - Quality and Power Train Operations.
    In order to enhance the strategic alignment of the platform functions, the
following executives are realigned to report to Mr. Schaum:
    *  Mr. Lawrence J. Achram is appointed Vice President - Large Car Platform
        Engineering
    *  Mr. Eric R. Ridenour is appointed Director - Advance Vehicle
        Engineering
    *  Mr. Frank O. Klegon, Vice President - Truck Platform Engineering
    *  Mr. Craig R. Love, Vice President - Jeep Platform Engineering
    *  Mr. Larry D. Lyons, Vice President - Small Car Platform Engineering
    *  Mr. Gordon L. Rinschler, Vice President - Minivan Platform Engineering

    In addition, the following executives continue reporting to Mr. Schaum:
    *  Mr. Floyd E. Allen, Vice President - Power Train Product Engineering
    *  Ms. Cynthia L. Hess, Vice President - Corporate Quality

    Bernard I Robertson is appointed Senior Vice President - Engineering
Technologies and General Manager - Truck Operations reporting to Mr. Gale.
Previously Robertson had been Senior Vice President Engineering and Technology
and General Manager - Truck Operations.  The following executives report to
Mr. Robertson:
    *  Mr. Ronald J. Bienkowski, Director - Technical Computer Center
    *  Mr. Christopher E. Borroni-Bird, Senior Manager - Technology Strategy
    *  Mr. Clifford J. Davis, Vice President-Scientific Laboratories & Proving
        Grounds
    *  Mr. Donald E. Goodwin, Director - CDS & VEO
    *  Mr. Roger P. Lundberg, Director - Technology Planning
    *  Mr. Thomas S. Moore, Vice President - Liberty & Technical Affairs
    *  Mr. Stephen E. Zimmer, Director - New Generation Vehicle Programs

    John C. Miller is appointed to the new position of Vice President -
Product Planning, reporting to Mr. Gale.  Miller had been Vice President and
General Manager - Large Car Platform Engineering.  This new position will
centralize product planning functions, facilitate long range planning and will
provide support to strategic business development opportunities.
    The following executives are realigned and report to Mr. Miller:
    *  Mr. Anthony P. G. Richards is appointed to the new position, General
        Product Manager - Passenger Car Operations
    *  Mr. David M. Kimball is appointed Director - Product Strategy
    *  Mr. James W. Rickert, Director - Operations Planning
    *  Mr. Richard Ray, General Product Manager - Truck Operations
    *  Mr. Ralph A. Sarotte, General Product Manager - Minivan Operations
    *  Mr. Paul B. Wilbur, General Product Manager - Jeep Operations
    *  Mr. Richard A. Winter, Director - International (Global) Product
        Planning and Central Staffs
    *  A General Product Manager - Power Train Operations will be appointed at
        a later date.

    Mr. Winter will have a functional reporting relationship to A. C. Liebler,
Senior Vice President of Marketing.  In addition, the Marketing Plans Managers
for each of the brands will have functional reporting relationships with Mr.
Miller to tie brand marketing operations to the platform team organization.
    As previously announced, Mr. Gary L. Henson is appointed Executive Vice
President - Manufacturing.  The following executives are realigned to report
to Mr. Henson:
    *  Mr. James P. Bonini, Director - Tritec Motors
    *  Mr. Carlos Lobo S., Senior Vice President - Power Train Manufacturing

    All other positions and executives in Mr. Henson's organization remain
unchanged.
    "With these organizational changes, DaimlerChrysler Corporation is truly
ready to move forward," said Bob Eaton and Juergen Schrempp, Chairmen,
DaimlerChrysler.  "We have our processes in place, our organization set and
our role in the overall company clarified.  It is time now to get on with the
business of the business -- developing great product and working with our
people to build a truly great company for the 21st Century."
    "This is a logical evolution of our recent decision to structure the
DaimlerChrysler automotive businesses in three divisions -- Mercedes-
Benz/smart, headed by Juergen Hubbert, Chrysler Passenger Cars and Trucks,
headed by Jim Holden and Commercial Vehicles, headed by Dieter Zetsche," said
Juergen Schrempp.  "This will enable us, as never before, to go beyond
customers' expectations in defining new concepts and new vehicles to surprise
and delight them.  It will enable us to sharpen our strategies to better meet
and exceed fast changing customer expectations and growing competition across
all our brands.  It will also accelerate decision-making, thereby delivering
greater shareholder value."