German-U.S. automaker DaimlerChrysler AG are planning to save $2.38 billion and cut jobs in a cost-cutting drive in its administration.
The online edition of German magazine Stern cited the works council as saying it feared 1,000 jobs will be cut in its central administration if the plan is carried out.

A spokesman for the group said it was considering cost cuts in its administration but had taken no decisions yet. Assembly plants had in the past implemented cost cutting programs.

"So it makes sense that we discuss the issue of costs in the area of administration as well," the spokesman said. He declined to give any figures for the extent of possible cost cuts.

DaimlerChrysler had said on Friday it was considering ways to cut costs at its twin headquarters in Stuttgart and Auburn Hills, Michigan, but has not yet formed any concrete plans.

The Stuttgarter Nachrichten newspaper said DaimlerChrysler expects to cut administrative costs in Stuttgart by 25 percent over two years. It said a similar amount was expected to be saved at the group's Auburn Hills headquarters.

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