BERLIN, Sept. 28 (Xinhuanet) -- DaimlerChrysler, a German-US joint carmaker, announced on Wednesday that it will cut 8,500 jobs at its Mercedes Car Group.

    The company said that the cuts will come through voluntary termination of employment agreements over the next 12 months and result in charges of 950 million euros.

    "These headcount reductions are indispensable. They will contribute to significant improvements in the competitiveness of Mercedes-Benz through an increase in productivity," the company said.

    The cuts are more than one tenth of the company's employees.

    "This and the attractive Mercedes-Benz product range are two major requirements for the long-term success of Mercedes Car Group," it added.

    The company said that the profit outlook for the group for the year 2005 remains unchanged.

    The news were welcome by traders in the Frankfurt market. The company's shares increased 1.72 euros to 45.65 euros at closing. Enditem