DaimlerChrysler Reorganizing

DaimlerChrysler on Friday announced a sweeping reorganization of its North American unit that insiders say is an effort to reestablish the former Chrysler Corp.’s fast-moving, freewheeling nature.

The German-U.S. auto maker said the restructuring of its North American auto operations will give executives there more autonomy, allowing them to centralize product planning functions, enhance overall product development capabilities, and boost manufacturing and engineering operations.

The move also makes Susan Cischke one of the most powerful women in the auto industry as head of the company’s North American car operations.

DaimlerChrysler Co-Chairman Robert Eaton said that the auto maker wants its various units to be more autonomous but still work together to share parts, learn from each other and drive more synergies.

“We want to do both,” he said after celebrating the assembly of the 2 millionth Jeep Grand Cherokee at a Detroit assembly plant. “We want to keep our brands separate, keep profit responsibility in Mercedes . . . in the Chrysler group here and in commercial vehicles.”

Company employees and industry sources who requested anonymity said North American officials had been eyeing such a restructuring for a long time as a way to regain the former Chrysler’s long-standing reputation as aggressive and fast-moving.

The change is also meant to boost morale within the former Chrysler, where many employees see last year’s merger with Daimler-Benz as a stifling influence on their creativity, sources said.

DaimlerChrysler has lost several U.S. executives since the merger, something Eaton and Co-Chairman Juergen Schrempp previously described as common after a merger.

Chrysler’s past success is one reason it became such an attractive target for Daimler-Benz, analysts said. The former Chrysler accounts for more than half of DaimlerChrysler’s profit.

Cischke, 45, was named senior vice president of regulatory affairs and passenger car operations, reporting to North American design chief Thomas Gale. She succeeds Ronald Boltz, who will retire Dec. 31.

DaimlerChrysler’s shares were up 25 cents, closing at $77.75 on the New York Stock Exchange.