Nobody downloaded yet

Daimler Chrysler Merger - Case Study Example

Comments (0) Cite this document
The global automobile industry is the industry and area of commerce in which automobile models are planned, designed, manufactured, and marketed. The automobile industry is concerned with profits and competition; with consumer demands for styling, safety, and efficiency; and with labor relations and manufacturing efficiency…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Daimler Chrysler Merger
Read TextPreview

Extract of sample "Daimler Chrysler Merger"

Download file to see previous pages From its inception until 1978, the U.S. automotive industry showed a steady expansion, with the exception of the years during World War II when its plants were converted to the production of war materials. In 1978, motor vehicle production reached an all-time high of 12.9 million units, including about 9.2 million cars; since then production has fluctuated. In the early 1980s the industry was in a recession, producing fewer cars in 1982 than in any year since 1958. From 1990 to 1992 the industry experienced another recession. In 1996, U.S. motor vehicle production totaled 11.8 million, including 6.1 million cars and 5.7 million trucks; North American motor vehicle production, including all vehicles made by domestic and foreign companies in the U.S., Canada, and Mexico, reached more than 15.4 million-8.2 million cars and 7.3 million trucks. In the mid-1990s, the U.S. auto industry showed signs of recovery (
To try to improve their global positions in terms of output and market share almost all of the major firms in the industry embarked on a period of consolidation in the 1980s and continued this in the 1990s. Ford acquired Aston Martin, Mazda, Jaguar, Land Rover and Volvo. Volkswagen gained Skoda and Seat. General Motors took major interests Saab, Suzuki, Isuzu and Daewoo. Finally, Renault merged with Nissan, Dacia and Samsung. The most salient point arising for the purposes of this paper is the firms which bought firms in economies where they had little previous presence as part of their strategy of going global. Essentially then DaimlerChrysler was caught up in a general trend and found itself following others in the search for what seemed global security through scale and scope.
Worker involvement in the full process began in the 1980s. Worker "circles," as developed by the Japanese, gained adherents in the U.S. auto industry as a means of taking some of the drudgery from repetitive, assembly-line tasks and simultaneously giving workers a larger interest in decision making. Profit sharing among auto workers began at the American Motors Corp. in the early 1960s. Chrysler Corp. approved the concept in bargaining with the United Auto Workers (UAW) union in 1981, as did Ford in 1982. By the mid-1980s profit sharing had become standard in the industry.
In 1990 the U.S. auto industry and related industries employed about one of every 13 workers in the nation. It is the largest single consumer of steel, plastics, glass, and rubber, to name four key supporting industries. The auto companies could not exist without outside suppliers, who typically supply 30 to 70 percent of the industry's requirements ( To provide U.S. automakers time to catch up with the Japanese, during the 1980s the U.S. government pressed Japan to restrain motor vehicle exports to the U.S. to 2.1 million per year. This quota was lowered to 1.6 million as the Japanese began producing large volumes of vehicles in American plants. Under the National Competitiveness Act of 1984, the three U.S.-based automakers began forming consortia in 1989 under which they share in research and development to reduce costs and speed new ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Daimler Chrysler Merger Case Study Example | Topics and Well Written Essays - 4250 words”, n.d.)
Daimler Chrysler Merger Case Study Example | Topics and Well Written Essays - 4250 words. Retrieved from
(Daimler Chrysler Merger Case Study Example | Topics and Well Written Essays - 4250 Words)
Daimler Chrysler Merger Case Study Example | Topics and Well Written Essays - 4250 Words.
“Daimler Chrysler Merger Case Study Example | Topics and Well Written Essays - 4250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Daimler Chrysler Merger

Daimler-Benz Marketing Plan

...? Daimler-Benz Marketing Plan of the of the of the Contents List of Figures and Tables 5 Executive Summary 6 2.Situation Analysis 7 2.1Market Summary 7 2.1.1Market Demographics 8 Geography 8 Demographics 8 Behavioral Factors 9 2.1.2Market Needs 9 Quality Craftsmanship and Designs 9 Customer Service 9 2.1.3Market Trend 10 2.1.4Market Growth 10 2.2 SWOT Analysis 11 Strengths 11 Weaknesses 12 Opportunities 12 Threats 13 2.3 Competition 13 2.4Product Offering 13 2.5Keys to Success 14 2.6Critical Issues 14 3.Marketing Strategy 16 3.1 Mission 16 3.2 Marketing Objectives 16 3.3Financial Objectives 17 3.4Target Markets 17 3.5Positioning 18 3.6Strategies 18 3.7 Marketing Program 19 Product 19 Price 19 Distribution 20 Promotional...
29 Pages(7250 words)Research Paper

Daimler organization culture

...?Introduction In 1998 the German car maker Daimler announced a merger with American car maker Chrysler in a deal that was worth $38 billion, and was,at that time, the largest cross-border deal ever. This merger brought visions of the merged company competing in every facet of the auto market, from $11,000 compact cars to $100,000 Mercedes (DaimlerChrysler Dawns). However, the merger of Daimler and Chrysler auto companies in the late 1990s was a failure almost from the start. There was the issue of the fact that this merger between two giant car companies was to be a “merger of equals,”...
12 Pages(3000 words)Assignment


...? Fiat-Chrysler Merger/Acquisition Strategic Analysis The business environment has become overly complex a factor that has required businesses to review their strategies in order to withstand the shifting market dynamics. Unfortunately, this has not always happened and the result has been struggling companies. For these companies the only solution is a complete overhaul or joining forces with a better placed company. The latter often comprise business acquisitions, or alliances. This study focuses on the former, with a specific look at Fiat’s acquisition of Chrysler. The basic goal is to strategically analyze the suitability of the acquisition on basis of the benefits derived by both...
20 Pages(5000 words)Essay


...?Recover from Injury In 2008 the Big Three American car companies were in trouble. The global economic crisis dragged them down including Chrysler’s downfall. They faced financial issues because the USA economy was weakening. Furthermore, there were regulations and laws adjustments in order to recover the financial situation of the nation. These changes negatively impacted Chrysler. After a year Chrysler has been trying to resolve its issues, thus Chrysler merged with Daimler. This alliance was unsuccessful and eventually the company broke the contract. Based on my analysis Daimler felt that Chrysler needed them, so...
5 Pages(1250 words)Essay


...? Part Three: The growth model that Daimler uses is to form strategic alliances with like minded automakers. This enables the company to use the facilities of its partners, while entering into a new market. This is neither an acquisition, nor a merger. It is only cooperation between similar companies which aim at using each other’s distribution channels and production units for their benefits. Under this model, profits are shared equally, or in accordance to the contribution that the companies forming the alliance make. In 2010, Daimler managed to form an alliance with Nissan and Renault (Reed, 2013). Before this alliance, it is important to denote that Daimler and...
4 Pages(1000 words)Essay


...? DAIMLER CHRYSLER Question1: What were the main differences between the Mercedes and Chrysler business models inthe car sector before the merger? The merger between German based Daimler-Benz AG Company and American based Chrysler Company took place in May 1998, with each company taking an equal share of the new corporation DaimlerChrysler (Kohler, 2005, p.311). However, due to prevailing economic crisis and technological developments in America the merger did not yield the anticipated results. This study will explore the differences of the products models of Chrysler and...
8 Pages(2000 words)Essay

Strategic Failure at Daimler-Chrysler

...?STRATEGIC FAILURE AT DAIMLER-CHRYSLER By Introduction A strategy according to Ghani is a plan of action prepared in details And supposed to cover a long period of time. When the avilable materials are not enough to take care of all the required golas, then a startegy must be crafted to make sure the business continues in operation (Doole & Lowe, 2008, p. 23). A structurre involving a merger, acquisition or joint ventures is even more complicated and can cause failures at times. This case analyses the extent to which strategic failure in the marriage between Daimler-Chrysler contributed to the total failure of this merger. It also relates the same to the merger betweeen Renault and Nissans’s success. Analysing the Depth of Causes... of...
4 Pages(1000 words)Assignment

Roles and Role Dynamics within the Daimler-Chrysler Corporation after Their Merger

...Roles and Role Dynamics within the Daimler-Chrysler Corporation after Their Merger We live in time of globalization that touches all the spheres of human activity, and the business world is not an exception. One of the major tendencies of the corporate business is creating international businesses going across boundaries and uniting nations. As the researches claim, “Populist fears of industrial concentration have faded, replaced by the conviction that the globalization of markets and the speed of technological change has tied efficiency to size.”(5) Merger is one more important element of globalization. The phenomenon of merger has been observed by the...
12 Pages(3000 words)Essay

Organizational Culture in Daimler-Chrysler

...Organizational Culture Introduction Organizational culture is one of the most important elements of effective organizational performance and positive staff relations. Leadership and management play a major and continuing role in relations between employees, their commitment and positive organizational climate. The decisions and actions of leadership and management have an increasing impact on individuals, other organizations and the community. The responsibility of leadership and management is to create and sustain healthy organizational culture based on ethical and moral principles, strong corporate policies and social responsibility issues. Company Description Daimler-Chrysler is one of the biggest...
8 Pages(2000 words)Case Study

Marketing Proposal for Daimler Chrysler

... Marketing Research Proposal for Daimler Chrysler Table of contents: Executive Summary Background: brief overview of Daimler chrysler & situation overview. Definition of the Problem Research questions Research design rational Research design References Appendices Executive Summary The researchers’ aim is to point out to the effect of Faddish; Carefree; Paranoid; Consciensous; Irresponsible; Positive outlook; Pro-active; Responsible parenting; and Patriot/ Loyalty, with Daimler Chrysler Informational Data. The computed F was greater than the tabular...
5 Pages(1250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Daimler Chrysler Merger for FREE!

Contact Us