Daimler Chrysler Merger

Topics: Daimler AG, Chrysler, Mergers and acquisitions Pages: 2 (571 words) Published: November 14, 2011
The Daimler-Chrysler merger came with the intent of a huge change. When the two made the merge they had high potential with both their backgrounds which helped them become the world’s fifth largest auto company (C-41). However, it was never foreseen that Chrysler which was part of the 3/4 of U.S. auto sales would have a complete turnaround in profits within a couple years (C-41). Being a strong company based upon brands and products isn’t everything for success as shown here. The merger provided the duo with a large variety of vehicle choices to different consumers. However the downfall came when Chrysler was threatened by other competition and declining sales (C-41). The opportunity was there and Daimler-Chrysler could have made something of it with a topnotch management team. Merging two companies also deals with merging different cultures and ideas together as well as strategies. The domination of Daimler-Chrysler brief success was due to the idea that they were providing brands and products that customers wanted at the time and created a chunk of financial capital. Without creating a balance of both financial and strategic controls put them at a loss for the idea that they didn’t create a guide for decision making for the long-term (35). Economically speaking Chrysler downfall was they were known for their gas-guzzling SUVs, trucks and minivans. Chrysler had been in trouble before in the 1970s because of economic changes and the oil crisis (C-42). Being able to build up from that disastrous event Chrysler’s management should have been aware what was about to essentially happen all over again with the increase of oil prices in the beginning of the 2000 decade. This also marked the new trend of consumers substituting the high fixed gas price of Chrysler vehicles with the more affordable Asian market (C-41). Now that Chrysler is owned by Cerberus, this also means all of its issues are owned by them as well. A major issue that Cerberus was now to...
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