Daimler Crysler Case

Question 1 What were your expectations (prior to the developments in 2007) of the DaimlerChrysler merger and its future prospects in the orbiculate auto patience? Initially, at the time of the merger thither were many aspects in favor of the DaimlerChrysler merger, such as: Chrysler gains a toehold in Europe, access to Daimlers technology base and prevail an image boost from Mercedes. Daimler should benefit from Chryslers strong U.S. presence, invention flair and manufacturing process that curb make it the world leader in profit-per-vehicle. Future products could be derived off common platformsthe public figure that forms a cars foundationand share major components. Mercedes, for instance, might develop a luxury pickup transport based on a Chrysler platform at a much lower cost than it could otherwise. By teaming up with Daimler, Chrysler go away gain greater access to the European market where Mercedes has much than 1,000 dealers. Chrysler has only 1% of the European market, compared to 12% each for GM and Ford. The merger may also help Chrysler overcome the fuss that has dogged it in recent yearsquality. The company gets racy grades for design, production and profitability, but still lags its domestic and Japanese rivals on quality ratings.

Though, after the honeymoon DaimlerChrysler encountered a multitude of problems concerning compatibility and industry influences. In my opinion these problems could have been solved if the management would have been capable and trained. It could be expected that the sheer sizes of the undertaking made the merger complicated and take years to complete. The different culturesMercedes to a greater extent conservative and stolid, Chrysler more freewheeling and dynamicwould be knotty to integrate. When Chrysler bought American Motors Corp. from Renault in the 1980s, many of Chryslers old-line executives resented ideas presented by AMCs French managers. Also, a merger between Volvo and Renault collapse in 1994 because of culture... If you want to get a full essay, order it on our website: Orderessay

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