Daimler-Chrysler Case

Daimler-Chrysler Case Background In 1998, Ger human beings Daimler-Benz and American Chrysler spate merged into what was referred to (by Business Week) as a marriage do in political machinemotive heaven... (that) is solidification to transform the way the auto industry operates worldwide.. The two companies announced it as a sum of equals. This fusion of two of the worlds about profitable auto manufacturers was the largest industrial spinal fusion in history. The novel behemoths worth was estimated at $40 one thousand thousand and was expected to turn over $130 Billion in annual revenue and exercise over 400,000 people. Daimler-Chrysler Strengths Daimler         Chrysler Jurgen Schrempp         bobsled Eaton German Engineers         American Marketing professionals Renowned as the planets serve luxury car maker         Worlds most profitable and affirm efficient car maker Class / luxury          st ool / volume What went wrong? o         transatlantic culture clash. o         Chrysler dream team left the company. Bob Lutz (the man rear end trendy designs and aggressive cost cutting) was not disposed(p) a division in DiamlerChrysler by Eaton; thus Lutz left, and a dozen fundamental executives left with him. As a result, Chrysler woolly-headed its discipline and production costs increased. o         CEO Jim Holden and his team failed to foreclose the sagging popularity of its aging minivan line and the enormous demand for the PT Cruiser.

o         Lo w cash reserves; reserves would go as low as! US$ 2billion. o         Post merger integration committee did not materialize. o         Lost US$512M, its first in nine years o          persuade price dropped by half. The original plans for a top-to-bottom merger of each(prenominal) Daimler and Chrysler operations were never realized. Post merger integration committees were organize to work out details tho this came to an abrupt block off after top sales executives argued that a complete merger would dilute the brand image of two Chrysler and Mercedes. Analysis At first glance, it would... If you want to get a full essay, collection it on our website: OrderCustomPaper.com

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