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Daimler AG Daimler AG is the thirteenth-largest car manufacturer and thirteenthsecondsecond-largest truck manufacturer in the world. world. Daimler is known for its brands of Mercedes Benz and Maybach series.
Changes in the Organisations Timeline Daimler Motoren Gesellschaft AG, 1890 1926 DaimlerDaimler-Benz AG, 1926 1998 DaimlerChrysler AG, 1998 2007 Daimler AG, 2007 present
Merger with Chrysler
In 1998 Daimler Benz AG merged with Chrysler. Chrysler was an American auto maker which operated only in the US. At that time, considered as the largest trans-atlantic deal. trans-
Needs for the change/merger Chrysler wanted to enter the international market and was facing some financial probs. Daimler AG had a strong financial foundation and operated in 21 countries and wanted to diversify.
Reasons for the Failure to Change Daimler AG being a German company was rigid in its policies. The American Chrysler company was propelled by innovative ideas and followed an extremely free culture. Cultural mismatch. While Daimler-Benz s culture stressed a more formal and Daimlerstructured management style, Chrysler favored a more relaxed, freewheeling style. Heavy losses in the range of $ 5 Billion due to Chryslers lack of inventory control. Chrysler laid off several key employees after the merger. German management tried to dominate the Chrysler operations. Major shareholders like the Deutche Bank wanted out. Total value of DaimlerChrysler stock fell by $ 9 B.
De Merger of Daimler AG and Chrysler Daimler approached and tried to sell Chrysler to Volkswagen, RenaultRenault-Nissan and Hyundai but was turned down. Finally sold Chrysler to Cerberus Capital Management in New York for $1.35 B.
Impact of the Changes Daimler CEO resigned after the fall in share price. Chrysler employees accused Daimler of bribery and corruption in developing nations. Daimler AG settled out of court with the bribery and other allegations filed against it. Daimler lost around $ 30 B to the merger and eventual pull out of Chrysler.