DaimlerChrysler Plans Overhaul at Mitsubishi

DaimlerChrysler is reportedly gearing up for radical changes that include massive layoffs at Mitsubishi Motors Corp., a management shuffle and increased parts-sharing between Mercedes-Benz and Chrysler. Under a plan to be unveiled Monday, the troubled auto maker is expected to cut 8,000 of Mitsubishi’s 65,000 employees worldwide and close two of the firm’s passenger car plants, German business weekly Wirtschaftswoche reported. It didn’t identify its sources. DaimlerChrysler, which owns 34% of the Japanese auto maker, is also expected to overhaul its management structure and introduce an executive committee to oversee the group’s Mercedes-Benz, Chrysler and commercial vehicle divisions as well as its alliance with Mitsubishi, according to the Financial Times Deutschland. The committee, to be headed by Chief Executive Juergen Schrempp, would replace the current system of separate automotive, sales and marketing councils. A DaimlerChrysler spokesman refused to comment. DaimlerChrysler shares closed up 37 cents at $51.66 on the NYSE.