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  • The Failure of Daimler-Chrysler Merger

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    Trang Hong Trinh
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    The document summarizes the failure of the 1998 merger between German automobile company Daimler-Benz and American company Chrysler. The merger was intended to be between equals but Daimler took control. Cultural and management style differences between the methodical, centralized German approach and the risk-taking American style led to key members leaving and decreased performance. Chrysler was eventually sold in 2007, ending the failed merger.

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    Discuss the culture aspect of the failure

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    The failure of Daimler-Chrysler Merger

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    The document summarizes the failure of the 1998 merger between German automobile company Daimler-Benz and American company Chrysler. The merger was intended to be between equals but Daimler took control. Cultural and management style differences between the methodical, centralized German approach and the risk-taking American style led to key members leaving and decreased performance. Chrysler was eventually sold in 2007, ending the failed merger.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    24 views5 pages

    The Failure of Daimler-Chrysler Merger

    Uploaded by

    Trang Hong Trinh
    The document summarizes the failure of the 1998 merger between German automobile company Daimler-Benz and American company Chrysler. The merger was intended to be between equals but Daimler took control. Cultural and management style differences between the methodical, centralized German approach and the risk-taking American style led to key members leaving and decreased performance. Chrysler was eventually sold in 2007, ending the failed merger.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 5

    THE FAILURE OF DAIMLER-CHRYSLER MERGER

    Arin, Berni, Luuk, Trang


    Introduction
    Daimler-Benz AG Chrysler
    - German automobile manufacturer - Daughter company of Fiat Chrysler
    - Founded in 1926 Automobiles
    - World War II - Founded in 1925
    - Daimler-Benz Interservices AG - Expanded into Europe in 1960

    Gottlieb Daimler Karl Benz Walter Chrysler


    The merger situation: DaimlerChrysler

    • Merge in 1998
    • Merge of ‘equals’
    • Daimler Benz took control
    • Key members left
    • Decrease of 12%
    • 2007 – Chrysler sold
    Why they failed? A Mismatch in Culture and
    Management Style
    Daimler Chrysler
    • Methodical, • Risk-taking,
    centralized assertive
    decision making “cowboy” style
    and high regard with flat
    for tradition hierarchies
    • Quality at any • Cost-efficient
    cost and well-priced
    vehicles

    Hofstede’s National Culture Model


    Conclusion

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