Ivey Publishing
DaimlerChrysler: Post-merger News
Product Number:
9B03M049
Publication Date:
09/25/2003
Revised Date:
10/22/2009
Length:
17 pages (8 pages of text)
Product Type:
Case (Library)
Source:
Ivey
Daimler-Benz AG, a large automobile manufacturer in Europe and the Chrysler Corporation, one of the Big Three auto makers in North America have merged to create DaimlerChrysler. On the surface, everything seemed to be going as planned. In reality, all was not well. Organizational changes, conflicting information, and doubts about the future structure of the company resulted in the departure of numerous Chrysler employees, including many mid-level managers and engineers. While initially amalgamated into Daimler, the Chrysler Group ended up as one of three separate automotive divisions. In 2001, DaimlerChrysler recorded a $1.2 billion loss in operating profit (before one-time effects). Estimates for 2002 called for a break-even result, but the company was facing a $9 billion lawsuit filed by the fifth largest shareholder, who claimed that Daimler had deceived investors by touting the venture as a merger of equals.
Issues:
Disciplines:
General Management/Strategy,  International
Industries:
Retail Trade
Setting:
Germany/United States, Large, 2002
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
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