DaimlerChrysler Essay by JPWrite

An assessment of the merger between auto companies Daimler-Benz and America's Chrysler Corporation.
# 66836 | 2,500 words | 13 sources | MLA | 2006 | US
Published on Jun 20, 2006 in Business (Companies) , Business (Industries)

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This paper studies the recent merger between America's Chrysler Corp., one of the U.S.'s Big Three, and Germany's Diamler-Benz, one of the oldest car companies in the world. The paper examines the terms of the deal, which the paper asserts mark a new trend of consolidation within the industry. Next, the paper assesses the manufacturing implications, including managing differences in productivity. The paper then turns to differences in the relationship between the component companies and their suppliers. The paper also briefly addresses the merging of sales and R&D functions. The paper concludes with a discussion about the company's financial future, including how it will leverage the component company's different strengths in international markets.

Table of Contents
Background:The Merger
Manufacturing Implications
Supply Chain
Research & Development
International Markets

From the Paper:

"The two companies call the $48 billion deal a "merger of equals" rather than an acquisition, careful not to use that word, even though it appears to outsiders that Daimler will be the stronger partner, and Chrysler is expected to be managed from Stuttgart in coming years ("Worldwide Fender Blender...;" Harbour). Each brings significant elements to the deal. Daimler-Benz was the biggest selling carmaker in Germany last year, exceeding total annual sales of BMW by $29.5 billion for a total of $62.9 billion (Feast). Chrysler is the "world leader in low-cost, high-volume auto production" with greater output per worker than Daimler-Benz ("Worldwide..."). Chrysler is also known for spotting good ideas and opportunities and focusing on them; Chrysler essentially invented the sports utility vehicle (SUV) with its Jeep Cherokee, now copied by all other major auto-makers, including Daimler-Benz whose Mercedes-Benz line has a luxury version. It also invented the minivan. Daimler-Benz has a strong reputation for quality, and Chrysler, which has some quality/image problems has a diverse line of autos with 28 models (brands and styles: Jeep, Dodge RAM Trucks, Chrysler sedans, minivans, etc.) compared to Daimler-Benz' limited line of luxury sedans. The combined product and price ranges will also appeal to a wider spectrum of consumers."

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