Daimler Chrysler

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Daimler Chrysler Cars – A Cross-Border Merge
Introduction
The ever demanding innovation in automobile market with increase in global trade and the competition from home and overseas market are identified as major elements in improving their global distribution systems which forces many automobile giants for location decision and merger which provides them the platform to operate efficiently in the global market. With such mergers and acquisitions the automobile giants can position themselves with better ranks in the global auto market which comes with an advantage package of overseas facilities and establishing themselves as the multinational giant automobile company with export growth expanding leaps and bounds. Daimler and Chrysler are two such auto giants who signed a merger to become the 3rd largest automobile giant in the world. Daimler with its all premium and luxury vehicles in Europe merged with world #25 North American low end cars and trucks manufacturing company Chrysler. With this merger the companies aimed at huge savings resulting due to the combined purchase and other operations and also reduced research and development costs. They aimed to create the greatest synergy possible and compliment each other posing big survival risks to their competitors but the merger ended with a sour note in 2007 with Chrysler being acquired by Cerberus capital management. This essay is an effort to show how cultural and working differences can create turmoil of events for the merger companies pushing the company’s future at stake.

Analysis – Issues with Merging
The Daimler Chrysler was considered as a costly mistake for both the American-German companies. Daimler was completely anguished with its loss of €12 million. The major reason...

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...he Daimler Chrysler merger – a cultural mismatch?’ [Online] Available at: Hollmann_Carpes_Beuron_2010_The-DaimlerChrysler-merger----_5150.pdf Viewed on 16 January, 2014
2. The Economist (2000), ‘The DaimlerChrysler emulsion’ [Online] Available at: http://www.economist.com/node/341352 Viewed on 16 January, 2014
3. Tuck school of business (2002), ‘The DaimlerChrysler Merger’ [Online] Available at: http://mba.tuck.dartmouth.edu/pdf/2002-1-0071.pdf Viewed on 15 January, 2014
4. Time (2012), ‘Cars, Crisis and Chrysler: Daimler-Benz Merger’ [Online] Available at: http://content.time.com/time/specials/packages/article/0,28804,1894731_1894734_1894722,00.html Viewed on 19 January, 2014
5. Paul A. Eisenstein (2002), ‘Repair Work’ [Online] Available at: http://www.cioinsight.com/c/a/Past-News/Case-Study-Merging-IT-at-DaimlerChrysler/2/ Viewed on 19 January, 2014

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