DaimlerChrysler: The Quest to Create “One Company” Case Analysis AMBA 650 Professor Bensimon February 12, 2013 In 1998, the Daimler Benz and Chrysler companies decided to merge together in an effort to capitalize on each other positioning in their respective markets. This merger would join together Germans and American to create synergy to dominate the world automotive market. In theory, this was a brilliant idea to bring together the best engineers and auto stylists in the
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three-year period 1998-2000. Having established that, one can understand that Daimler was under market and investor pressure to go large. In such an environment, a European company would think of an integrative expansion to the vast US market as the best strategy (Japanese market too cultural different). So, from the choices of either founding a new subsidiary (high risk) or seeking for a JV, or an acquisition or a merger Daimler went for the merger. It was an effort to meet the environmental trend by
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------------------------------------------------- Introduction In May, 1998, Daimler-Benz1 and Chrysler Corporation,2 two of the world's leading car manufacturers, agreed to combine their businesses in what they claimed to be a "merger of equals." The DaimlerChrysler (DCX) merger took approximately one year to finalize. The process began when Jurgen Schrempp3and Robert Eaton4 met to discuss the possible merger on January 18, 1998. After receiving approval from a number of groups, (Refer Exhibit
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(consulting/editing) TEAMKOM Kommunikation&Design (design) Netfederation GmbH (interactive online report) Photography Bildarchiv Daimler AG, Fotolia (icons p. 18/19) Production l in millions of € 8,116 10,139 10,179 j in millions of € 6,830 8,720 7,290 l Total vehicle sales in millions 2.2 2.35 2.55 j 1,451,569 1,565,563 1,722,561 j Unit sales of Daimler Trucks 461,954 484,211 495,668 j Unit sales of Mercedes-Benz Vans 252,418 270,144 294,594 j 32,088 33,705 33,162
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................................................................................ 1 1. The changing world automobile industry .............................. 1 2. Reasons for mergers and acquisitions .................................. 3 2.1. 2.2. Daimler-Benzs’ motives..................................................................... 3 Chryslers’ motives ............................................................................. 5 3. The Post-Merger Integration Structure..................
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Chrysler and Daimler merger case 1) in 1998 the worldwide car market is growing (from 46 million in 1993 to 52 million in 1997), but more and more competitor are present in this business market in a worlwide level. In the 90's the incumbent competitors are threatening by the emergence of Korean manufacturers ( Hyundai, Kia ), because the firm are offering cheap and good quality cars. the emerging firms in the 90's are from Asia, where the work force is cheaper than in westerners country, in this
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maker with Daimler’s legendary Mercedes-Benz was supposed to be a match made in Heaven. However, Chrysler’s management expectations were quickly erased as CEO Juergen Schrempp of Daimler never intended equality in running the new acquisition. Within the first year, it became apparent that Chrysler had become a division of Daimler - a point Schrempp verified in interviews with the media. Schrempp’s attempts at boosting Chrysler’s sales had flopped; the company experienced huge losses and Schrempp began
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Executive Summary: The Daimler Group is one of the world’s leading company in the automotive and commercial vehicle industry. The company originally stationed in Stuttgart, Germany exports their vehicles to most developed countries around the world including Brazil, England, United States among many others. Daimler is a proud representative of various commercial vehicles and trucks such as Mercedes-Benz, Freightliner, Fuso, and Western Star amongst other vehicles. The main brand with the most varied
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McPhail MGMT 4390 Spring 2015 Dr. Jones Case Analysis: DaimlerChrysler In the case “DaimlerChrysler: Post-Merger News”, DaimlerChrysler is facing the strategic issue of figuring out how to bring together the two cultural differences between Daimler-Benz AG and the Chrysler Corporation that would create a positive and profitable synergy for DaimlerChrysler as a whole, while regaining stockholders trust. As the post-merger integration process accelerates, they need to identify opportunities to
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CASE STUDY - “Daimler and Chrysler: lessons from a merger”. This case study is about the merger occurred in 1998 between two big companies in the auto industry: German company Daimler-Benz and American auto manufacturer Chrysler Group. At the end, this merger appeared to be a failure because of different types of problems. Chrysler benefited from Mercedes while benefits to Daimler were harder to find, so that Daimler decided to sell 80% of its stake in Chrysler for just 7.4 billion dollars.
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