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ian town of Forchheim was getting beat up by rival General Electric Co. and that shareholders were nag- ging Siemens to dump its medical equipment unit. Everyone’s job was on the line. The negotiations were tough. But Kleinfeld won over workers, hanging around the factory asking detailed questions. He answered e-mails from employee reps almost immediately, even late at night, recalls Werner Mönius, chairman of the work- ers council in Erlangen, Germany, home base of Siemens Medical Solutions Division. “He was able to motivate people to pull together,” says Mönius. The workers signed off on Kleinfeld’s plan, which helped cut the time it took to build a $100,000-plus diagnostic scanner from six weeks to one. Siemens Medical is now Siemens’s most profitable business. And that cocky young boss? This month Klein- feld, now 47, becomes chief executive of Munich- based Siemens, a $100 billion behemoth that oper- ates in 190 countries and makes subways, light bulbs, power plants, auto parts, automatic mail-sorting equipment, and more. With 430,000 employees and 12 major divisions, Siemens is the rock of Germany Inc., which still needs to learn how to survive and thrive in a world where heavily taxed, slow-moving European companies operate at a disadvantage. If Siemens can reach new levels of profitability, maybe the rest of Corporate Germany has a chance, too. Siemens Chief Executive Heinrich von Pierer and the company’s supervisory board, which includes such corporate luminaries as Deutsche Bank CEO Josef Ackermann and former Allianz Group CEO Henning Schulte-Noelle, skipped over more sea- soned top managers to choose the ferociously ener- getic Kleinfeld. He’s a prime example of a new breed of German manager, fluent in English and comfort- able in settings from Tokyo to Toledo. “This genera- tion has grown up in a much stronger international environment than the earlier one,”

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