Mercedes 2006 Annual Report Download - page 82
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Chrysler Group Recovery and Transformation Plan.
On February 14, 2007, DaimlerChrysler announced the Chrysler
Group’s three-year “Recovery and Transformation Plan.” This plan
aims to return the Chrysler Group to profitability by 2008
and redesign the business model for the Chrysler Group. The plan
identifies a combination of measures designed to increase
revenues and reduce costs, including: continuation of the product
offensive; workforce reductions by 13,000 employees over three
years; reduction of material costs by €1.15 billion; and reduction in
production capacity by 400,000 units per year by eliminating
work shifts and idling plants. DaimlerChrysler expects these
recovery measures to result in restructuring charges of up to
€1 billion to be recognized in its financial statements in 2007,
with a cash impact for the year 2007 of about €0.8 billion.
The plan will be supported by investments of €2.3 billion in new
engines, transmissions and axles.
Further events after the end of the 2006 financial year.
Since the end of the 2006 financial year, there have been no
further occurrences that are of major significance to Daimler-
Chrysler.
The course of business in the first two months of
2007 confirms the statements made in the “Outlook” section
of this Annual Report.
Events after the End of the 2006 Financial Year
66