Mergers, Acquisitions and Takeovers Case Study

DaimlerChrysler's New Challenge : Saving the Merger

OR

Abstract:
DaimlerChrysler came into existence in 1998 through the merger of Daimler-Benz of Germany and Chrysler Corporation of the US, and was plagued with problems from its inception. In addition to declining profitability in the Chrysler division, the Mercedes brand got hit by quality problems. Additionally, its small car unit 'Smart' and its luxury car division, 'Maybach', both failed to take off. It is reported that Jurgen E Schrempp, the Chief Executive Officer of DaimlerChrysler, who had been held responsible for the problems, would be stepping down on January 1 st 2006 and would be succeeded by Dieter Zetsche.

Pedagogical Objectives:

• To highlight the problems faced by DaimlerChrysler after the merger
• To discuss whether Zetsche would be successful in turning the company around and saving the merger.

Keywords : DaimlerChrysler; Merger; Global automaker; Boom-and-bust cycles; Restructuring plan;Mergers,Acquisitions,Alliances Case Study; European small car segment; Ultra luxury car segment; Mitsubishi Motors; Jurgen E Schrempp; Dieter Zetsche

Contents : 
The Merger of Daimler and Chrysler
Problems after the Merger
Saving the Merger
Combined Revenues, Operating Profits and Employees
Problems after the Merger
US Market Share of Chrysler from 1996 to 2003