Tuesday, September 19, 2006

Daimler Chrysler Set To Steamline And Cut Production

DCX expects bigger truck profits as it cuts production
By MATT MOORE, Associated Press, September 19, 2006

FRANKFURT, Germany — DaimlerChrysler AG said Tuesday that its truck division will continue to increase its profitability through 2006 as it streamlines production in preparation for a sector-wide slowdown. “The Truck Group will continue to grow its return on net assets and profitability this year,” division chief Andreas Renschler said during his speech at the International Commercial Vehicles Show in Hanover. To do that, he said the company would expand its use of common parts and components for manufacturing, making it easier for production to go forward and eliminating costs. “This includes the future use of only three engine families worldwide, instead of the current eight, the use of common axles and transmissions, and the continued use of many common parts such as standardized steering wheels,” he said. The company says it has saved 300 million euros ($380 million) so far by cutting down the number of different components. After strong truck sales over the past years, demand is expected to cool next year in key markets like North America and Western Europe, the company said.In the first six months of 2006, the unit sold 257,900 vehicles, down from the 263,600 it sold in the same period a year ago....LINK TO FULL ARTICLE

9/19/2006 09:45:00 AM

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