The DaimlerChrysler Merger

The Companies Daimler AG Chrysler Corporation The starting situation "Merger of Equals" Clash of the Cultures complementing products Goals of the merger - increasingly competitive market in the 1990's.... -->Japan and China -> only 10 out of 30 will survive CEO: Juergen Schrempp

most profitable car maker in the world

high reputation (Mercedes)

high costs

state of the art engeneering -> conservative, efficent and safe CEO: Robert Eaton

Americas No 3.

2 times almost bancrupt

most profitable car maker in the US

simple cars

limited on US market

low cost/ high volume -> daring, diverse and creative in May 1998

stock swap ( $ 57 billion)

announced in Germany


-> 442.000 employees
-> $ 92 billion market capitalisation more takeover of Chrysler by Daimler... geographical match savings by combining research and operations improvement of competitive position in the world from Germany from the United States 3 years later... market capitalisation $ 44 billion

Chrysler group share - 60%

Daimler still 830 million profits -> they divorced in June 2007 Post-Merger Integration Team several million $

cultural sensivity workshops quality

hierachic/conservative

Collectivism

analyse and prepare in detail

titles are important

suit and tie

private orientated price

team orientated/ innovative

Individualism

spontaneous decisions/informal information

first names

casual clothes

public orientated Conclusion Exchange of employees expatriates - negative comments in the public press Synergies - Germans copied the American meeting-style

- Americans double checked their suppliers unexpected cultural problems

slight differences caused trouble

DC was aware of communication problems

failure mainly because of: The Daimler Chrysler Merger and its cross cultural communication problems... Recommendations Thank you for your attention!

Questions? better integration of management

quicker reaction on Chrysler's losses

strenghten the awareness of different cultures

better preparation of the merger serious competition Sources Tobias Wolf-The DaimlerChrysler merger - One company, two cultures (Research Paper)

http://de.wikipedia.org/wiki/Daimler_AG#DaimlerChrysler_AG_.281998.E2.80.932007.29

http://content.stuttgarter-zeitung.de/stz/page/detail.php/414429

http://www.hausarbeiten.de/faecher/vorschau/114405.html

http://www.spiegel.de/wirtschaft/0,1518,475711,00.html

http://www.scribd.com/doc/53607721/Edward-Joe-2