DaimlerChrysler AG has drawn up an interim status of the voluntary  personnel-reduction program at the Mercedes Car Group. By the end of  the year 2005, approximately 5,000 employees of the Mercedes Car  Group had signed retirement contracts or had already left the  company. This means that around 60% of the twelve-month target has  been achieved just three months after starting the voluntary program.  Some 1,100 of the contracts are for early retirement. The cost of  implementing the program is within the specified financial scope.

The program of voluntary personnel reductions, which started in  October 2005, has the goal of reducing the workforce of the Mercedes  Car Group in Germany by 8,500 jobs by the end of September 2006.

Günther Fleig, DaimlerChrysler Board of Management Member for Human  Resources and Labor Relations Director, stated: “Our expectations  have been confirmed. Following this interim status, we continue to  consider it realistic that we will successfully achieve the targeted  personnel reductions on the basis of the employment pact ‘Future  Safeguarding 2012’”.

According to Mr. Fleig, the personnel-reduction program must continue  unchanged in order to improve the competitiveness of the Mercedes Car  Group. “Although the processes are not easy for all of the persons  involved, this voluntary program is the best way to reduce the size  of the workforce in a socially acceptable manner. The high rate of  participation demonstrates the acceptance of the program.”