In the year 1998, two giants of the car industry announced their merger: there was on the one hand the German one, Daimler-Benz and on the other hand the American one Chrysler. At the beginning this merger was supposed to become successful and create a lot of profits. But we are going to see in what it has been a failure and the reasons of this incredible mess.
What is a M&A?
Definition: this is a general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed.
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Extraits de l'étude de cas
[...] Why has been this merger so fast? The main problem is that normally when two firms are merging there are totally equal from a general point of view: many departments are merged. If we take the example of the research and development department searchers were supposed to share their ideas in order to create synergy but it was not the case at all. Another example which is an interesting one concerned the production capacity: if you are developing car models with the same basis (it was the case of the roadster Mercedes SLK and Chrysler Crossfire), you are able to save money because you are producing more and the development's cost was less important. [...]
[...] Daimler Case The name ?Daimler? has been especially created for the merger between Chrysler and Daimler Benz. Now the firm is present in different sectors, of course the primary one is the automobile industry with the brand Mercedes. There is another sector which is less known where the company has activities: aeronautics because it has more than thirty percent of EADS (European Aeronautic Defence and Space Company). The reason why Daimler is able to continue its activities is the wealthy organization of the whole group. [...]
À propos de l'auteur
François B.ETUDIANTManagement organisationDaimler & Chrysler Case