Daimler in the Indian market

first in the 20th century

1954, the Tata Ltd ( Telco ) established a 15 year agreement the indian
company will manufacture medium-duty Mercedes-Benz trucks for their local
market at Telcos plant in Pune. After the expiration of the agreement, Tata
sold the vehicles under its own brand.
1994 they founded a joint venture named Mercedes Benz India Ltd. Mercedes
passenger cars
1999 Telco reduced its stake in the venture to 14%
2001- partnership ended
2001 Mercedes started the production in India and ownership of the company
passed to DaimlerChrysler AG, whose headquarters are in Pune.

Mercedes-Benz : global sourcing of auto components and captive automotive

technology reseach and development
2007 sold off its greater part of equity shares to Chrysler
the company was again renamed as Mercedes-Benz India Ltd.
2010 sell report : 2402 vehicles
2010 Marc : Daimler AG sold its 5.3% stake in Tata Motors Ltd.

12.4.2
2008 Daimler AG commercial veicle joint venture with the Indian Hero Group
planned : investment of over 700 million EUR until 2013 ( meaning 5 year plan ) ,
in which Daimler Ag picking up 60% equity
it was viewed as a long term business partnership
was planned to produce all kind of vehicles under a new brand name
Plant was to be set up at Oragadam , and the production to be started in 2010
But the joint venture between the two failed in April 2009

Subsidiary lenyvllalat
commercial vehicles- haszonjrmvek
Daimler India Commercial Vehicles Pvt. Ltd.

unvailed- bemutatta
robust- ers

to show the commitment and to continue the construction of the indian truck
plant, Daimler introduced a test track of global standards
which they plan to be operating as an independent profit centre
also available for component vendors and non-core competitiors to test their
products

Reason of failiure and difficulties in International Merger :

Analysts agree that the cultural gap in corporate cultures was one of the main
reasons for the Daimler-Chrysler failure. Daimler was a German company which
could be described as conservative, efficient and safe, while Chrysler was
known as daring, diverse and creating (Appelbaum, Roberts and Shapiro,
2009:44).
If one looks closely, they will find numerous manifestations of these differences in
the corporate cultures.
Firstly, the attitude to hierarchy was quite different. Daimler was a very
hierarchical company with a clear chain of command and respect for authority.
Chrysler, on the other cultural hand, favoured a more team-oriented and
egalitarian approach.
The other cultural difference lay in what the companies valued in terms of
their clients. Chrysler valued reliability and achieving the highest levels of
quality, while Chrysler was placing its bets on catchy designs and offering their
cars for competitive prices. These two factors resulted in conflicting orders and
goals in different departments. American and German managers had different
values which drove and directed their work. Different departments were heading
in opposing directions.
Apart from differences in corporate culture there was also an issue of trust.
Employees on both sides felt reluctant to work with each other. Mainly
this was caused by the realization that the agreed term merger of the equals"
was pretty far from reality. During the initial stages of organisational
integration, huge bulks of Chryslers key executives either resigned or
were replaced by Germans counterparts.
Moreover, Daimler was much more imposing and tried to dictate the terms on
which the new company should work (Appelbaum, Roberts and Shapiro,

2009:44). Such a situation didnt inspire trust in Chryslers employees and raised
some serious communication challenges.

So to summarise the cultural factors in play here:

1. differences in corporate cultures and values
2. lack of coordination
3. severe lack of trust among the employees

Tata motors and Daimler :

After this transaction, the Tata Group holds about 25.5% in Tata Motors.
Daimler, on its part, had invested in the Indian auto major several years ago
and had seen Tata Motors' stock appreciate significantly. At one point of
time, Daimler held over 10% stake in Tata Motors and also had a seat on its
board.

The relationship, which began in 1957 with Daimler providing the

technology to Tata Motors (then known as Telco), had been fading over
time. The first batch of trucks that rolled out from the Telco factory had the
Benz logo. The technical tie-up ended in 1969. In 2008, Daimler didn't
participate in Tata Motors' Rs 4,415 crore rights issue and the German
company's stake reduced from 6.64% to 5.34%.

http://timesofindia.indiatimes.com/business/india-business/After-52-yearsDaimler-sells-stake-in-Tata-Motors/articleshow/5665270.cms

http://www.emercedesbenz.com/autos/mercedes-benz/corporate-news/daimlersells-equity-interest-in-tata-motors-of-india/