Daimler Chrysler Merger Failure
Daimler Chrysler Merger Failure
Abstract
This paper discusses about the reasons of merger failure between two big auto manufacturing organizations Daimler Benz AG and Chrysler Corporation. One of the main areas of discussions would be the organizational cultural issues between the two companies as they are from two different countries United States of America and Germany. The two organizations merged with intent to enter into the top three ranking in the industry in terms of revenue, market capitalization and earnings.” (Daimler-Benz, 1998). The merger did not last long and it turned out to be big failure. The positive side of the merger would people from different countries could have brought different ideas which could have lead to a better auto products in the market but the inflexibility of both the organizations have made the merger a failure..
Background
Chrysler before merger: Chrysler is a US based automaker founded by Walter Chrysler in the year 1925. Its headquarters was located in Detroit, MI, USA. Chrysler focus was on Cars, Minivans, Sport-utility vehicles and Trucks. Some of the signature cars produced by Chrysler were Chrysler K-310 and Chrysler six. “Within a decade of its founding, Chrysler Corporation's leadership in innovation had earned for it the label of Detroit's "engineering company." Chrysler's list of early automotive "firsts" included Floating Power (a new method of mounting engines to isolate vibration), replaceable oil filters, downdraft carburetors and one-piece curved windshields. Chrysler entered a higher level of competition with its richly appointed Imperial series. With a custom-built body from LeBaron or Briggs, a 145-inch-wheelbase chassis, a 125-horsepower engine and a price tag of $3,145, a typical Imperial of the early 1930s rivaled a Duesenberg in style, but cost only about a third as much!” (Chrysler History, n.d.) “Known in the years after
Abstract
This paper discusses about the reasons of merger failure between two big auto manufacturing organizations Daimler Benz AG and Chrysler Corporation. One of the main areas of discussions would be the organizational cultural issues between the two companies as they are from two different countries United States of America and Germany. The two organizations merged with intent to enter into the top three ranking in the industry in terms of revenue, market capitalization and earnings.” (Daimler-Benz, 1998). The merger did not last long and it turned out to be big failure. The positive side of the merger would people from different countries could have brought different ideas which could have lead to a better auto products in the market but the inflexibility of both the organizations have made the merger a failure..
Background
Chrysler before merger: Chrysler is a US based automaker founded by Walter Chrysler in the year 1925. Its headquarters was located in Detroit, MI, USA. Chrysler focus was on Cars, Minivans, Sport-utility vehicles and Trucks. Some of the signature cars produced by Chrysler were Chrysler K-310 and Chrysler six. “Within a decade of its founding, Chrysler Corporation's leadership in innovation had earned for it the label of Detroit's "engineering company." Chrysler's list of early automotive "firsts" included Floating Power (a new method of mounting engines to isolate vibration), replaceable oil filters, downdraft carburetors and one-piece curved windshields. Chrysler entered a higher level of competition with its richly appointed Imperial series. With a custom-built body from LeBaron or Briggs, a 145-inch-wheelbase chassis, a 125-horsepower engine and a price tag of $3,145, a typical Imperial of the early 1930s rivaled a Duesenberg in style, but cost only about a third as much!” (Chrysler History, n.d.) “Known in the years after
References: Maynard, M. (April 30, 2009). . In Chrysler: A Short History. Retrieved May 4, 2012, from http://www.nytimes.com/2009/05/01/business/01history.html. Wilson, S.J. (May 2, 2009). . In Chrysler 's history: timeline. Retrieved May 4, 2012, from http://articles.latimes.com/2009/may/02/business/fi-chryslerchrono2. Chrysler History.(n.d.). In Chrysler History 1920s. Retrieved May 4, 2012, from http://www.chrysler.com/en/this-is-chrysler/history/ The three pointed star, (n.d.) Wagner, R.(n.d.). In Daimler Car History. Retrieved May 4, 2012, from http://www.ehow.com/about_5056863_daimler-car-history.html The history behind the Mercedes-Benz brand, (n.d.) Daimler at Glance, (n.d.). In Daimler at Glance. Retrieved May 4, 2012, from http://www.daimler.com/dccom/0-5-1259480-1-12898-1-0-0-0-0-0-36-7145-0-0-0-0-0-0-0.html Daimler-Benz, (May 7, 1998) DaimlerChrysler Post-Merger, (n.d.). In The DaimlerChrysler Post-Merger Analysis. Retrieved May 4, 2012, from http://jaybrownonline.com/sites/jaybrownonline.com/files/post-mergeranalysis.htm DaimlerChrysler dawns, (May 7, 1998.) Harding, D. & Rouse, T, (April, 2007). In Human Due Diligence. Retrieved May 4, 2012, from http://hbr.org/2007/04/human-due-diligence/ar/1 Merger of Growth, (1998)