The aim of the New Management Model (NMM) is to enable the operating units to focus on their core processes. As a result, the number of employees in administrative units all over the world will decrease by up to 20 percent between 2006 and the end of 2008 (approximately 6,000 jobs). The restructuring for the German tariff region will be implemented by means of voluntary severance agreements based on the “Safeguarding the Future 2012” agreement. By the end of January 2007, approximately 2,000 employees had signed severance agreements or had already left the company. By the end of 2006, the implementation of this process at the management levels was nearly complete.

Mercedes Car Group: As part of the CORE program, 8,500 jobs were to be cut at the German locations of the Mercedes Car Group. By September 2006, approximately 9,300 employees at the German locations of the Mercedes Car Group had voluntarily signed severance agreements or had already left MCG. Early retirements account for about 1,900 of these agreements. In the fourth quarter of 2006, an additional 400 employees took advantage of the severance option.