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Daimler’s AEG Unit to Dissolve Headquarters

December 5, 1995

FRANKFURT (AP) _ Daimler-Benz electronics and rail technology unit AEG AG plans to dissolve its Frankfurt-based central headquarters, a senior AEG official was quoted as telling employees Tuesday.

The step had been expected as part of the division’s plan to spin off its Energy Technic and Industry Automation businesses, leaving only a handful of AEG activities: rail transport, diesel engines, micro-electronics and postal-sorting automation technology.

Wolfgang Scholz, AEG’s chief of personnel, told a meeting of the company’s employees that AEG’s board has decided on the dissolution of the 114-year-old company’s central office, AEG employee works council member Peter Sackenheim said.

The announcement comes amid long-running speculation about the fate of the money-losing AEG, which is a unit of German industrial group Daimler-Benz AG.

About 700 employees at the headquarters as well as 300 white-collar workers may lose their jobs, Sackenheim quoted Scholz as saying.

In November, AEG’s Chairman Ernst Georg Stoeckl, said the central office couldn’t be justified by the size of the operations over which it presided.

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