STUTTGART, Germany, March 25 /PRNewswire/ -- DaimlerChrysler AG is planning to focus on the smart fortwo to ensure the long-term sustainability of its smart brand. Thus, the profitability of smart will be confirmed, with positive results expected from 2007 onward.
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The planned measures for a further enhancement of the business model of smart include the following items:
-- The clear focus on the smart fortwo;
-- the intention to cancel production of the smart forfour;
-- the manifestation of smart and especially the smart fortwo as a long-
term and important part of DaimlerChrysler's product portfolio;
-- as well as the complete integration of smart into the Mercedes
organization.
Overall, these measures are likely to result in a headcount reduction of 300 employees at smart in Boblingen.
The smart forfour is produced by MMC through its wholly-owned subsidiary Netherlands Car B.V. (Nedcar) in Born, Netherlands. The cancellation of the forfour production is still subject to negotiations to be carried out with MMC and all other partners.
The measures described above are still subject to approval by both the Board of Management and the Supervisory Board of DaimlerChrysler AG. The costs for DaimlerChrysler related to these measures are estimated to be in the magnitude of approximately 1 billion euros.
Further information from DaimlerChrysler is available on the internet at: http://www.media.daimlerchrysler.com/
This document contains forward-looking statements that reflect management's current views with respect to future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project" and "should" and similar expressions identify forward- looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in Europe or North America; changes in currency exchange rates, interest rates and in raw material prices; introduction of competing products; increased sales incentives; the effective implementation of the New Management Model for DaimlerChrysler and the CORE program, including the new business model for smart, at the Mercedes Car Group; renewed pressure to continue cost reduction efforts in light of restructuring plans announced by General Motors Corporation and Ford Motor Company; supply interruptions of production materials, resulting from shortages, labor strikes or supplier insolvencies; the resolution of pending governmental investigations; and decline in resale prices of used vehicles. If any of these or other risks and uncertainties occur (some of which are described under the heading "Risk Report" in DaimlerChrysler's most recent Annual Report and under the heading "Risk Factors" in DaimlerChrysler's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission), or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.
