Daimler Chrysler

Mergers and acquisitions have become a growing trend for companies to inorganically grow a business within its particular industry. There are many goals that companies may be looking to achieve by doing this, but the main reason is to guarantee long-term and profitable growth for their business. Companies have to keep up with a rapidly increasing global market and increased competition. With the struggle for competitive advantage becoming stronger and stronger, it is almost essential to achieve these mergers. Through research I will attempt to dissect the best practices for achieving merger success.

Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business

The paper differs from others as it will provide insight and evaluation into which event during the merger process had the largest effect and identify whether this was the same for both firms, especially since the merger was undertaken in a tough regulatory environment which contains many “hurdles” (). The results of this paper could be attributed to other firms in the industry or, potentially, to other industries with similar regulatory structures.

Analysts expect the auto-industry recovery to persist as the market is benefiting from low interest rates, longer-term loans, and rebounding consumer confidence. Edmunds consultancy predicts 2014 sales of over 16 million, only one million units below the year 2000 sales record. Kristin Dziczek, a specialist at the Center for Automotive Research in Ann Arbor, says the post-great recession U.S. The auto industry is now highly competitive versus all global rivals. The United States auto industry is dominated by five major auto manufacturers: GM, Toyota, Ford, Cerberus (which owns Chrysler), and Honda, in ascending order of market share. These companies comprise 74.3% of the US market. The strength of US auto manufacturers, GM, Ford, and the company formerly known as Daimler-Chrysler, were once the dominant forces in the US market, fueled in part by their strength in the American-specific segment for pick-up trucks. However, with an increase in globalization, domestic markets must now compete with foreign competition. As foreign companies have gained accessibility into the US market over the past decade, domestic car manufactures have found it increasingly harder to compete. Most foreign competitors have been able to obtain lower raw material and production costs while maintaining equal, if not better, quality of their product. The current market has been fueled by an attraction to European and Asian automakers and car models.

The Daimler-Benz and Chrysler merger was set to fail as both companies were at complete opposite ends of the spectrum in regards to how they do business. Daimler was a German company with strict rules and policies. Chrysler, an American company, favoured a team orientated approach. Two opposite leadership styles, Autocratic and Participative. Daimler and Chrysler had different approaches to clients which resulted in departments going in opposite directions instead of working together. Trust had a major part to play. Employees on both sides were reluctant to trust each other. This was primarily due to Chrysler’s executives either resigning or being replaced. As a result share prices

The automobile market is one of the most lucrative markets in the world. They have focused on international expansion since the late 1900s. This market has very successful international companies such as Mercedes-Benz, Lexis, Hyundai, Chrysler, Camry, Fiat, etc. All of these firms have held a position in the automobile industry. Even in economic hardships when demand for automobiles was decreased, the market did not faze them. Two firms prominent in this industry are Chrysler and Fiat which have both held successful positions in the late 1900s. Due to decreased market demand and lackluster products both firms have drastically diminished their market appeal. This has led to decreased profits which have led to European

Over one hundred years ago in Germany and France the automotive industry has become a major source of industrial and economic stability worldwide. In this report we will describe how the auto industry is affected by new companies entering the market, mergers, and globalization, on pricing and the sustainability of profits. We will explore mergers and merger activity within the industry as well as current and expected government policies and regulations in place to address issues related to externalities. We will also take a look at the effects of global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in the auto industry. Considering the aforementioned topic on the auto industry’s competitive strategies and Government policies you will say that this report aims to explain how these two areas have impacted the auto industry and will affect it going forward.

Chapter 7: Merger and Acquisition Strategy --- The Acquisition and Restructuring of Kia Motors by Hyundai Motors (written by Seungwha Chung and Sunju Park)

In 2009, two multinational automotive corporations, Fiat and Chrysler, confirmed a merger that would prove to shake up the automotive industry.

This research paper presents some recommendations and a related action plan to address the strategic changes which are deemed crucial to the survival of General Motors (GM). An overview of the contemporary situation at the corporation is provided in this section of the paper, which is then followed by specific recommendations and a strategic plan of action to bring about the changes which are necessary for the company’s survival in these turbulent times.

To increase this size, Chrysler was offered to merge with General Motors. Chrysler was in slightly better shape, but still failing in 2008. Recent years displayed modest profit, but similar turmoil amongst the upper management caused some re-organizing of the company in the early 2000s [1]. While

I have chosen two major international automotive manufacturing companies for this annual report project. General Motors Co. a Delaware Corporation headquartered in Detroit, Michigan and its international competitor Daimler AH a German Corporation located in Stuffgart, Germany. These two companies build and sell cars, trucks and automotive parts. The two auto giants also provide financial services to their customer base. General Motors brands include Chevrolet, GMC, Buick, Cadillac, Holden, Open and Vauxhall. Daimler AG brands include Mercedes-Benz, Freightliner, FUSO, Western Star, Thomas Built Buses and BharatBenz.

DaimlerChrysler’s brand strategy was flawed. The new DaimlerChrysler cannibalized its own product line, as the Mercedes M class collided with the Jeep Grand Cherokee, affecting one of Chrysler’s most profitable product lines. Chrysler was supposed to pick up small-car segment, but Chrysler brand didn’t fit the small-car image.

Daimler AG is one of the top luxury car makers in the world and one of the best in the luxury cross over segments. Some of the following technical resources give Daimler AG a competitive edge in the market –

In reviewing this article it was observed that some employees were skeptical of the merger between Chrysler and Daimler-Benz. Daimler-Benz employees were proud of the elite image and were concerned about having that tarnished by another company. Chrysler employees voiced concerns about the addition of a foreign partner to one of America's auto manufacturers. Employees needed reassurance that this merger was going to be a success! In light of all the adversity both companies faced since announcing their plans to merge, how did they remain so steadfast in their commitment to pursuing this merger? What kept them believing this merger was a good deal that deserved a second look? To answer these questions I want to step back and discuss what I