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MTS Systems Corporation

My name's Bernard Levesque and I'm the Technical and Quality Manager at MTS in Paris and work within the MTD -the Materials Testing Division, which makes equipment used by industrial firms to test the strength and durability of materials like plastics, metals and so forth. We're a subsidiary of MTS Systems Corporation, an American firm based in Minneapolis. MTS employs roughly 2,200 people worldwide and is a leading supplier of mechanical testing and simulation equipment. Our major development and manufacturing operations are located in the US, France and Germany, and we have sales and service offices around the world.

Before I describe the organization of my department, I'll outline the structure from the top, starting with Werner Ongyert, our CEO, who oversees all aspects of our activities here. Just below him is the General Manager, Jacques Mordelet, who is my immediate superior. Then there's Sylviane Villaret, the Human Resources Director, and Genevieve Cornetti, the GM's Secretary, who also report directly to him. We have a management team that includes myself, Dominique Fauheux, the Sales Manager, Jean-Francois Reinauld, the Finance Manager, and of course, Jacques Mordelet, who is also the Marketing Manager. There are also two new departments - Customer Service and NVD, the Noise and Vibration Division -headed by Louis Regnier and Patrick Dhommee respectively.

Now, getting back to the way my department is organized, I'm responsible for operations, so I'm in charge of Purchasing and Planning, R&D and Quality. The Purchasing and Planning Department schedules production based on orders provided by the sales team and forecasts from the Marketing Department. In R&D, there are three sub-departments - Mechanical Engineering, Electronics, and Engineering - which are involved in developing new products and modifying existing products to meet customer demands. They receive technical specifications from the Marketing Department and provide drawings, a parts list assembly instructions. Nathalie Launay works closely with me on Quality - and that takes up nearly a third of my time. And finally there's the head of ping, as well as the person in charge of Assembly, who also report to me.

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Board Ousts BMW Chief and His Heir

By John Schmid

Frankfurt - The maker of BMW autos announced the departures of its two executives Friday in a rare German boardroom revolt that analysts said was triggered by heavy losses at the company's British Rover auto-making subsidiary.

Persistent problems at Rover forced the exit of Bayerische Motoren Worked AG's Chief Executive Bernd Pischetsrieder, 50, and his heir apparent on the company board, Wolfgang Reitzle, 49. The two men were long-time rivals, and they had worked at BMW for more than two decades.

Although Mr. Pischetsrieder's job has been the subject of intense speculation, the development shocked the auto industry because of Mr. Reitzle's reputation as a talented and visionary manager whose skills have been crucial in recent years in polishing BMW's sporty and youthful image. The shake-up leaves a relatively unknown BMW board member, Joachim Milberg, 56, as the head of one Europe's most prestigious auto-makers.

BMW's supervisory board made the decisions at an extraordinary meeting at its Munich headquarters. In a sign of possible dissent, the meeting lasted into the evening. BMW stock International Herald Tribune closed Friday at 682 Euros ($770), up 23, on hopes Pischetsrieder would be ousted. In a brief statement, BMW said that both Mr. Pischetsrieder and Mr. Reitzle had resigned without giving reasons. The board meeting had been called to discuss Rover, the company said. Simultaneous exits by two top executives are virtually unknown in German business. "It's a very rare situation when board members, especially the chairman, are kicked out when they still have a contract," said Jurgen Roethig, an analyst in Frankfurt at B. Metxler & Co. Bank.

From the moment Mr. Milberg begins his job, his most pressing task will be a turnaround at the unprofitable Rover operations. Rover's fate threatened Friday to become a heated political issue in Britain where auto-makers are concerned that Munich-based BMW might consider shutting down Rover's flagship production plant in Longbridge, near Birmingham. British government officials joined trade union officials in demanding that BMW honor a commitment made in December that would keep the plant open.

Autoworkers said they feared that new management could bring an eventual shutdown of Longbridge, the largest of Rover's three factories and the oldest auto plant in Great Britain. Rover's 1998 losses are estimated to have been as high as 1.5 million Deutshe marks ($869.3 million), greater than last year's entire BMW group net profit. The German parent has not yet released profit figures for last year. Analysts said the supervisory board had lost patience with Mr. Pischetsrieder because Rover's poor performance had overshadowed a record year at BMW's German operations. BMW sold a record 699,378 cars last year but its profit dropped for the first time since 1993 because of Rover.

Longbridge assembles most of the line of Rover passenger cars, which plunged in sales last year by 17 percent to 303,800. By contrast, Rover's popular Land Rover sport-utility vehicles - which are built at the Solihull plant near Oxford - had a 20 percent jump in 1998 demand to 153,500.

BMW evidently was surprised by the magnitude of Rover's problems. The company was slow to recognize Rover's 30 percent productivity gap with BMW's Bavarian plants. Mr. Pischetsrieder led the 1994 acquisition of Rover as one of his I actions as chief executive. His mistake, analysts say, was to manage Rover at S-length. An Anglophile who speaks fluent English, Mr. Pischetsrieder was worried about anti-German feelings, and he maintained Rover as a separate company.