AUGUST 29, 2003
Cuts coming at DaimlerChrysler AG?
There are reports from Germany that DaimlerChrysler is about to announce major cost-cutting efforts, designed to trim $1.5bn by the end of the current year. The focus of the cuts will be the two automobile divisions Mercedes-Benz and Chrysler.
Germany's Focus magazine quoted an unnamed DaimlerChrysler executive saying that all areas of the company will be told to cut costs significantly in the second half of the year.
This may not have any effect on the Formula 1 program but it is hard to see how the company can justify continuing the same level of expenditure on auto racing when other areas are being cut back to save money. Any budget reduction will likely have more effect on the 2004 program than it will on this year's activities although with McLaren and Mercedes having already built next year's car this should not be affected.
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