Daimler-Chrysler Merger Case: Rationale of a failure
Research Paper (undergraduate) from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: A-, International School of Management Dortmund , language: English, abstract: Back in 1998, Daimler-Benz, the German manufacturer of luxury automobiles, had only captured less than one percent of the American market (Daimler-Benz AG, Standard & Poor’s Stock Reports. New York: Standard & Poor’s, Inc., July 21, 1997). Meanwhile, the American Chrysler Corporation was willing to extend its international reach, especially in Europe. Given the circumstances, both companies came to the conclusion that a merger would make sense. On May 7th, 1998, the merger was officially announced as the largest trans-Atlantic merger ever. However, this buyout - which could have led to the creation of the greatest car manufacturer in the world - had failed in less that ten years. On May 14, 2007, the DaimlerChrysler company was already a thing of the past. Almost two years after the sale of Chrysler, a question remains: Why the merger failed? If we compare a merger to a marriage, we would say that they married the wrong persons. But how managers and executives from the two companies has gotten it so wrong?
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acquisition of Chrysler American market ANALYSIS The rationale Article Writer Auburn Hills Auto Dynasty Benz Billion $7.4 billion Bob Eaton brand name Business at Dartmouth car makers car producer Cerberus Takes Chrysler by Daimler Chrysler Corporation Chrysler Group company’s Corporate Structure Cultural Aspects Cultural Issues Introduction Daimler and Chrysler Daimler Motoren Gesellschaft Daimler-Benz AG Daimler-Benz Drove Daimler-Chrysler Merger Takes DaimlerChrysler Merger Data retrieved employees four million cars German National Library Gottlieb Daimler Grässlin Interest in Chrysler Jürgen Schrempp Keegan large sedan cars largest trans-Atlantic merger Leadership Style luxury vehicles M&A industry Matthew merger of equals Merger or Acquisition Merger Takes Shape months in 2007 Nicolas Martelin Northeastern University Boston October 31 Poor’s Stock Poors Stock Reports Pre-Merger Situation profitable car retrieved from Daimler.com Retrieved on January sale of Chrysler School of Business sold by Daimler Spectacular Failure Standard & Poors superficial cultural differences Tobias Wolf Tuck School Wikipedia.org York