Mercedes-Benz boss Dieter Zetsche was one of the stars at the Frankfurt auto show, introducing a new S class. But now the real work begins: pulling the German luxury brand out of its funk.
Last week Mercedes offered buyouts to workers in an effort to cut 8,500 of its 105,000 jobs over the next year. It hopes to make the biggest cuts at plants in Sindelfingen and Bremen, Germany.
The buyouts will cost the automaker about $1.1 billion.
Mercedes can't lay off the workers. It cut a deal last year with the IG Metall union that guaranteed no layoffs until 2012. In return, the union gave concessions worth about $600 million a year, beginning in 2007.
Zetsche: DaimlerChrysler's future CEO turns his attention to Mercedes.