Daimler-Chrysler Merger - What Went Wrong? *

Details

Mini Case Code : CLIM004
Publication date : 2005
Subject : International Marketing
Industry : Automobiles
Length : 04 Pages
Price : Rs. 100

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Key words:

Chrysler Corporation, Daimler-Benz AG, Daimler-Chrysler, merger, cross-cultural merger, transnational merger, post-merger integration, cultural differences

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet analyzes the consequences of the merger between the Daimler-Benz AG and Chrysler Corporation. It discusses how the merger proved to be a costly mistake for both the organizations and attempts to analyze the factors that led to the failure.

Issues: » Do mergers always have a positive impact on companies? » Role of human resource in the success of a merger » How cultural factors make or mar mergers » Is the Daimler-Chrysler merger a merger of equals? Introduction Chrysler Corporation came into existence on June 6, 1925, when Walter P Chrysler purchased Maxwell Motor Car Company Inc., a US company. Chrysler introduced its first luxury automobile in 1926 under the brand name E-80 Imperial...

Questions for Discussion:

1. What are the possible reasons for the failure of the Daimler-Chrysler merger?

2. What are the issues that should have been considered by both the companies before entering into a merger?

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