Daimler Chrysler Merger

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Topics: Daimler AG
6. Evaluate Dieter Zetsche's strategies and reorganization in 2006. Also, analyze DaimlerChrysler'sbrands in the world auto markets as of end 2006'

Economist put it rightly when it spoke about the merger of Daimler Benz and Chrysler,

‘Without Daimler, Chrysler would be in liquidation; and without Chrysler, Mercedes would be confined to a limited future of narrowing horizons, as rivals encroached on the luxury market.’
However, the highly spoken merger did not work as they expected.Their structures and mechanisms were quite different. German approach was following a hierarchical and organized mechanism and Chrysler being quite relaxed in their approach. So, their basics were quite strange to each other and that fact has been found to be a quite hindrance to reach their planned goal in the merging.
By the time Zetsche took became the CEO of DaimlerChrysler it was facing huge problems such as law suits accounting for billions from investors, recalling of Benz cars on quality issues, slowed down sales etc.First of all, Zetsche announced tough production redevelopment measures and the cutting of 8,500 jobs. The second wave of attack followed in February and targeted office workers. Every fifth administration employee and every third manager was going to lose their job. By the end of 2008, a total of 22,000 administrative jobs were supposed to be slated to go.
Overall costs should sink by ₤1 billion ($1.18 billion) annually over the next three years - keeping in mind though that the scaling down program will swallow up some ₤2 billion ($2.3 billion). "We have to do our job more efficiently and with fewer resources than in the past," Zetsche said. In order to achieve that goal he used different strategies.

Dieter Zetsche’s Strategies
DaimlerChrysler chief Dieter Zetsche spoke of his plan to head back to the roots from the get-go: "We don't want to announce lofty plans," said Zetsche. He wants to set short-term goals and "meet them." He wanted to achieve this

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