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Introduction
When Daimler-Benz Ag bought Chrysler Corp. ... Chrysler had $7.5 billion in cash on hand, there was little overlap in the two companies respective product lines-luxury cars versus mass-market compacts and minivans-and Chrysler was lean and mean, earning more per vehicle than any other major carmaker in the U. ... At a press conference announcing what was then being proclaimed as a "marriage of equals," Chrysler Chairman Robert Eaton offered a rationale: "This is all about speed and flexibility. ... " Crowed Daimler Chairman Jürgen Schrempp: "The two companies are a perfect fit of two leaders in their respective markets. ... While Chrysler was relatively centralized, Daimler-Benz was notoriously decentralized-reflecting a company that functioned like a bunch of semiautonomous fiefdoms. Each Daimler business unit had operated its own IT system; financial and human resources applications, especially on the Daimler side, had evolved regionally. ... " Case in point: The old Daimler and old Chrysler sides of the company still use separate databases to collect and analyze customer information for marketing strategy. ... Chryslers new German boss, Dieter Zetsche, has ordered another $8 billion in cuts at Chrysler over the next three years-just as additional cost-cutting targets are getting harder to find. To eke out more savings, analysts say, Daimler execs will have to start sharing engineering and design work with their Chrysler counterparts, which, up until now, theyve guarded tightly. ... Nearly one-third of the components in the new Chrysler Crossfire sports car, for example, are being borrowed from Mercedes. ... In addition, Mahler says, DC may save $100 million in engineering costs by cloning a Mercedes transmission for Chrysler sedans coming out in 2004. ... Still, analysts like Keller question how far DC can go in this direction before "customers start wondering why theyre paying $100,000 for a Mercedes when they can spend $20,000 on a Mercedes-built Chrysler compact.
Approximate Word count = 1960
Approximate Pages = 7.8
(250 words per page double spaced)
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