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Despite high hopes and promises of success, the Daimler-Benz acquisition of Chrysler in November of 1998 has turned out to be a catastrophe for Chrysler as its corporate identity continues to be stripped away and its financial condition teeters on the edge of disaster. Controlling 57% of the stock in the new company, Daimler slowly but surely began to exercise control over activities within Chrysler. The gradual replacement of senior executives with Daimler-Benz personnel, combined with Daimler¡¦s increasing use of it¡¦s decision-making authority have confirmed Chrysler¡¦s subordinate position within Daimler/Chrysler. Chrysler management continues to handle day to day operations, but ultimate decision-making authority rests solidly in Stuttgart. ... The merger with Daimler has proven to be an exceptionally bad move as Chrysler now faces it¡¦s greatest challenge ever ¡V surviving another corporate recession ¡V yet, this time, under the control of a foreign corporation.
As a corporate entity, Chrysler has become a mere shadow of its former status. No longer an independent American icon, Chrysler is now a division of the Germany based Daimler-Benz. To the casual observer it may appear that Chrysler has maintained its sovereignty and control, but upon closer examination the loss of independent management and decision-making authority become glaringly obvious. One observer offered this comical analysis, ¡§Question - How do you pronounce Daimler/Chrysler? Answer - Daimler. The Chrysler is silent.¡¨ 1
Despite repeated assurances that the Chrysler and Daimler venture was to be a symbiotic union, the business reality is that Daimler not only bought Chrysler, but that the buyout was intentionally planned and executed. According to Bill Vlasic and Bradley Stertz of the Detroit News, ¡§The merger was hailed as a ¡¥merger of equals,¡¦ but the hype backfired amid a clash of cultures and personalities. When the dust settled, Daimler had bought Chrysler, and the shock waves reverberated on both sides of the Atlantic.¡¨ 2 Indeed, the prevalent misconceptions regarding a benign and mutually beneficial union of Daimler and Chrysler were nothing more than a complex subterfuge perpetuated by Juergen Schrempp in order to seal the deal. Schrempp, the dogmatic and highly charismatic CEO of Daimler ¡§recently said that Daimler-Benz never really intended Chrysler to be an equal partner. ... Bud Liebler, the long-time advertising and public relations executive for Chrysler stated, ¡§We should have never called this a ¡¥merger of equals¡¦¡K It was an acquisition, and by calling it something else, we confused a lot of people on both sides of the Atlantic.
Approximate Word count = 2026
Approximate Pages = 8.1
(250 words per page double spaced)
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