Mercedes to Lay Off More Than 8,000
September 28, 2005
DaimlerChrysler AG will dismiss more than 8,000 German workers from its troubled Mercedes division, a German newspaper reported.
The Stuttgarter Nachrichten stated that the cuts — which would be 3,000 more than the 5,000 previously expected — would be announced on Wednesday, the BBC said.
The luxury car division has been beset with quality control problems and a strong euro currency.
As the euro rises in value against currencies in countries where Mercedes seeks to sell cars, the price of those cars also rises. Alternately, a weakening euro allows Mercedes to cut the price of their exported cars without experiencing smaller profits.