FRANKFURT (Reuters) - DaimlerChrysler (DCXGn.DE) stock firmed on Tuesday on expectations that the world's fifth-biggest carmaker will announce more job cuts, especially at headquarters near Stuttgart, to hone its competitive edge.þþ``I don't think we should be astonished to see this happen,'' said Sal. Oppenheim analyst Michael Raab, noting new Chief Executive Dieter Zetsche had indicated in recent newspaper interviews that he saw headquarters as top-heavy.þþMedia reports said Zetsche, who is also head of the group's premium Mercedes Car Group division, would brief the supervisory board on Tuesday about plans to slash white-collar jobs.þþThe Wall Street Journal, citing a person familiar with the matter, said Zetsche planned to trim global management ranks by around 20 percent, or 5,000 people, with Mercedes taking the brunt of the cuts.þþGermany's Handelsblatt quoted company sources as saying Zetsche, who became group chief executive at the start of the year, aimed to significantly reduce staffing at headquarters, where 5,000 people work.þþDaimlerChrysler had no comment on the reports.þþMercedes is already in the process of cutting 8,500 mostly manufacturing jobs as a way to boost margins at the division, normally the group's cash cow but which struggled last year.þþDaimlerChrysler stock rose 0.6 percent to 42.92 euros by 1048 GMT, outpacing the DJ Stoxx European car sector index.þþThe share has narrowly lagged the index (.SXAP) this year and trades at around 11.6 times estimated 2006 earnings, a premium to archrival BMW's (BMWG.DE) 10.4 times, according to Reuters data. þþCUTS TO COMEþþA source familiar with the matter told Reuters in December that DaimlerChrysler aimed to reduce headcount in Germany by around 16,500 by the end of 2008, including 8,500 jobs it has already announced will go at premium brand Mercedes-Benz.þþIt has set aside 950 million euros to finance the 8,500 job cuts via early retirement and other voluntary redundancies.þþThe additional cuts, to be made via attrition and over the objections of the IG Metall labor union, target 6,000 slots at Mercedes and 2,000 jobs at its commercial vehicles division, the source said at the time.þþDaimlerChrysler, the world's fifth-biggest carmaker, thus joins the ranks of rivals chopping payrolls in a bid to shore up earnings in an intensely competitive global car market.þþFord Motor Co (F.N) on Monday announced plans to cut 25,000 to 30,000 manufacturing jobs and close 14 plants as it tries to shore up its loss-making North American operations. General Motors Corp (GM.N) has started a program of similar scope.þþZetsche cut 40,000 jobs when he headed U.S. arm Chrysler.þþDaimler's commercial vehicles division, which also chopped thousands of jobs during a sector lull three years ago, is working flat out now to meet demand, but there are signs that a global truck boom is starting to slow.þþThat leaves Mercedes as the division with the most potential to shed staff, even though cuts are expensive due to a wage deal with its works council that guaranteed no worker at its German plants would be laid off through the end of 2011.þþOne person at Daimler has called the 8,500 cuts already announced at Mercedes ``a drop in the bucket'' given how productivity at Chrysler easily outshines that at Mercedes.þþ
Source: NY Times
