DaimlerChrysler is downsizing
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SCOTT JAGOW: GM and Ford have told us how they plan to turn things around. Today, DaimlerChrysler unveils its restructuring blueprint. We already know a little bit about it. Like, the company will probably close a couple plants. And perhaps 10,000 workers could lose their jobs. Alisa Roth has more.
ALISA ROTH: It’s been almost 10 years since Mercedes Benz and Chrysler merged. But when it comes to actually building cars, the two companies are still pretty separate.
Auto analyst John Casesa says the restructuring could force them to start sharing parts, designs, and even factories.
He says the companies that succeed at this make their higher-end brands worth the extra cost.
JOHN CASESA: By offering superior technology and good performance and still take advantage of the common resources they have in these companies.
Big job cuts and plant closings in 2001 helped DaimlerChrysler survive until now. But Casesa says today it’s in the same trouble as its crosstown rivals, GM and Ford.
CASESA: They’ve sold all their non-core assets, they’ve dipped into their savings and now they’ve borrowed aggressively.
There’s even talk that if this restructuring fails, Daimler could spin off the Chrysler brand. But Casesa and other analysts say it’s not likely.
In New York, I’m Alisa Roth for Marketplace.
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