Daimler-Chrysler Merger CaseResearch 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 actual American car American market announced automobile aware become Benz billion Bob Eaton brand name Business at Dartmouth car maker car manufacturer car producer Chrysler Corporation clearly Conclusion Cultural Aspects cultural di&erences Daimler Daimler and Chrysler Daimler Motoren Gesellschaft Daimler!Benz DaimlerChrysler Merger Data retrieved despite Detroit earned employees engineering entity European executives expected experience faced fact failed failure Ford Former founded four German GRIN hand industry intern July Jürgen Schrempp Keegan keep largest trans!Atlantic merger least less married match matter Matthew Mercedes merged merger of equals Minds motor Northeastern University Boston October 31 organized perfect Plymouth position President Press prior producer profitable rapidly reach RECOMMENDATIONS Related remain result School of Business seemed sell share signed situation spectacular failure Standard & Poor’s Stock Reports stop structure Takes Tuck School United values Verlag York