In tandem (at last) (DaimlerChrysler)
In tandem (at last) (DaimlerChrysler)
The Economist, April 1-7, 2006, Vol. 379 No. 8471 (Special Issue), Start Page: 69, No. of pages: 3
Purpose – To examine the amalgamation between Daimler-Benz and Chrysler to form DaimlerChrysler. Design/methodology/approach – Investigates the’merger’ between Daimler-Benz and Chrysler to form DaimlerChrysler in 1998; traces the recent history of Mercedes-Benz; reports on the present leadership of Mr Schrempp and the strategy that he has pursued since taking over the company. Puts forward how the merger, intended to turn Daimler-Benz into a global carmaker with a big presence in the USA proved to be highly problematic;draws attention to the ill-advised hands-off strategy adopted by the former Daimler-Benz to Chrysler and the underestimation by Daimler-Benz of the financial, productivity and quality control problems besetting Chrysler. Highlights how the two companies had very different ways of working; describes how Chrysler has now been turned around; outlines how the group now faces severe problems caused by the rise of Asian brands and identifies the future challenges that DaimlerChrysler must resolve including, among others, gaining a foothold in Asia, and turning round its loss of competitiveness in the European market. Originality/value – Homes in on the challenges facing DaimlerChrysler.ISSN: 0013-0613Reference: 35AJ966
Keywords: Automotive industry, Corporate strategy, Acquisitions and mergers
