DaimlerChrysler AG is reorganising its commercial vehicles division that will put product development under a single management team and separate its engines and parts business, Associated Press (AP) reported.
The company said that no layoffs or job reductions were involved as a result of Monday’s announcement, AP added.
According to AP, new vehicle development at the German-US vehicle maker’s far-flung truck, van and bus units is run separately while the commercial vehicles division employs 60,000 people worldwide including Freightliner, the Portland, Oregon-based truck, bus and fire-engine maker, and Mercedes-Benz trucks, buses and vans.
“The new development unit brings together the expertise of all the truck development units within the group and synchronises their activities,” commercial vehicles head Eckhard Cordes said in a statement, Associate Press reported.
Citing the statement, AP said the division also will break up its Powersystems components business, which includes engine production by its Detroit Diesel unit and Mercedes-Benz as well as production of transmissions, axles and steering systems.
According to AP, the company said that Powersystems plants will be parcelled out to the division’s regional vehicle producers and its parts will no longer be sold outside DaimlerChrysler, supplying only the group’s own vehicles “except for a few isolated exceptions.”
The Associated Press report noted that the Powersystems division was formed in 2001 after DaimlerChrysler took over engine maker Detroit Diesel.