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Mergers, Acquisitions, Alliances and Synergies Case Study
Case Title:
DaimlerChrysler's New Challenge : Saving the Merger
Publication Year : 2005
Authors: Souvik Dhar, Sumit Kumar Chaudhuri
Industry: Automobile
Region: USA
Case Code: MAA0052
Teaching Note: Not Available
Structured Assignment: Not Available
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
