DaimlerChrysler will probably consolidate top executive jobs as they become more integrated.
Executives at both Daimler-Benz and Chrysler are studying how best to blend the two firms.
Daimler-Benz will release a 'Merger Report' at the end of this week detailing expected savings. Daimler-Benz sources told European journalists that the companies had been conservative when they projected benefits to the combined operation in 1999 of $1.4 billion.
Some savings will eventually come from reducing the DaimlerChrysler management board, which will begin with eight members from Chrysler and 10 from Daimler.
'It is a starting structure,' said Daimler-Benz Chairman Juergen Schrempp. 'The projects in sales, marketing and development are separated for both companies. But there will be development and it could be reasonable, after a certain time, to combine responsibilities in one person.'
Chrysler has 33 Synergy Teams and a lead Integration Team looking at every aspect of company operations.
Some Chrysler managers have been plucked from their departments knowing that they will not be returning. Tim Adams, former president of Chrysler Europe, is an example.
Chrysler President Tom Stallkamp said 17 of the Chrysler teams 'are focused on Day 1 so we can hit the ground running.' Stallkamp will be in charge of DaimlerChrysler integration.
Daimler-Benz has 11 teams working on integration, with about 200 staff.
The leaders are Herbert Kaufmann, Daimler's chief controller, Heinrich Rodewick, Daimler's top lawyer, and Rudiger Grube, head of strategic planning. They report to Eckhard Cordes and Manfred Gentz, Daimler-Benz board members.
The teams are studying issues like production capacity for the Mercedes-Benz ML320 sport-utility and the advertising DaimlerChrysler should use on Day 1.
Chrysler and Daimler-Benz AG stunned the industry 7 May when they jointly announced their merger plan.
Shareholders from each company will vote on the plan at separate meetings 18 September.