Daimler-Benz AG, a major automotive manufacturers in Europe and the Chrysler Corporation, one of the Big Three automakers in North America, brought together to create DaimlerChrysler. On the surface, everything seemed to go as planned. In reality, all was not well. Organizational changes, conflicting information and doubt about the future structure of the company resulted in the departure of many Chrysler employees, including many mid-level managers and engineers. While initially merged … Read more »

Daimler-Benz AG, a major automotive manufacturers in Europe and the Chrysler Corporation, one of the Big Three automakers in North America, brought together to create DaimlerChrysler. On the surface, everything seemed to go as planned. In reality, all was not well. Organizational changes, conflicting information and doubt about the future structure of the company resulted in the departure of many Chrysler employees, including many mid-level managers and engineers. While initially merged into Daimler, Chrysler Group ended up being one of three separate automotive divisions. In 2001, DaimlerChrysler has a $ 1.2 billion loss in operating profit (before exceptional items). Named for the year 2002 for a balanced result, but the company was estimated 5 before a $ 9 billion lawsuit filed by the largest shareholder that Daimler had investors touting the venture filed claimed deceived as a merger of equals.
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from
Pratima Bansal,
Doug Airey
Andy Gepp,
Cathy Harris,
Yves Menard
Source: Ivey Publishing
20 pages.
Release Date: 09 September 2003. Prod #: 903M49-PDF-ENG
DaimlerChrysler: post-merger news HBR case solution