| In 1998 Daimler-Benz and the Chrysler Corporation tied | | | | committed "fraud and deceit" in orchestrating the |
| the knot. The newly created DaimlerChrysler [DCX] | | | | merger.Adding fuel to the fire was the closing out of |
| conglomerate was touted in the business world as a | | | | the Plymouth brand. Already suspicious of German |
| merger of equals with both companies retaining their | | | | intentions and knowing full well that the "merger of |
| unique and distinct identities. Soon after the merger the | | | | equals" was, in fact, an acquisition of Chrysler by |
| honeymoon period abruptly ended and the rancor | | | | Daimler-Benz, the ending of the Plymouth brand |
| began. Diametrically opposite management and cultural | | | | escalated fears that the Chrysler Group would fade |
| differences contributed to deep divisions which nearly | | | | into the background.Fortunately, time has eased some |
| scuttled the new relationship. Today, things are much | | | | of the friction and the Chrysler Group [defined as the |
| different than they were in 1998; however it remains to | | | | part of DaimlerChrysler that was at one time the |
| be seen whether the long term partnership between | | | | Chrysler Corporation] has benefited from the merger in |
| the German and American automakers will outlast the | | | | several ways, including:New Mercedes inspired |
| deep, mutual distrust that prevailed for so many | | | | products. The Chrysler Crossfire was the first of |
| years.A changing global automobile market during the | | | | several new Mercedes inspired products to find their |
| final decade of the 20th century signaled the end of | | | | way into the Chrysler Group. Made in Germany, the |
| small, independent automakers. Although fairly large in | | | | Crossfire is essentially a rebadged Mercedes roadster, |
| size, the Chrysler Corporation, which nearly vanished in | | | | a model that the top of the line Chrysler division never |
| the early 1980s, was once again nearing a crisis point: | | | | had.Strengthening of the Dodge name. Already a |
| a rapidly changing market meant that large amounts of | | | | decent performer, the Dodge division has received |
| cash would be needed to keep their product line up to | | | | several Mercedes M class inspired models including the |
| date as well as to take their product to emerging and | | | | Magnum and the Charger. The Viper has been redone, |
| lucrative new markets. Unlike in the early 1980s when | | | | the Ram trucks updated, and the Neon is in the |
| the US federal government stepped in with much | | | | process of being replaced. Dodge market share is |
| needed cash, no government suitor was expected this | | | | increasing even in the face of strong foreign |
| time around. For Chrysler, the long term strategy | | | | competition.Fresh blood for Jeep. An all new 7 |
| strongly suggested that the automaker would have to | | | | passenger Commander has hit the streets and |
| be acquired in order to survive. In stepped | | | | additional products are being planned.Likely, Mercedes |
| Daimler-Benz.At first, the merger was hailed as the | | | | would have survived without a merger, while Chrysler |
| deal of the century. The combined automakers, | | | | would not have. Overcoming strong cultural |
| roughly the same size, quickly became the fifth largest | | | | differences - German authoritarian vs. American |
| automaker in the world. Combining German engineering | | | | creativity - has kept the company afloat. Some are |
| - Mercedes being the principle business - and North | | | | crediting Zetsche's understanding of the American |
| American marketing - the Jeep line and the Chrysler | | | | company and culture with easing tensions, thus |
| minivans being the biggest draw - many envisioned | | | | allowing the companies to benefit from what they |
| that the new company would quickly capture a bigger | | | | have in common versus their differences.Certainly, the |
| slice of the global market. Unfortunately, the dream | | | | rancor that existed just a few years ago seems to |
| was nearly scuttled and for the following reasons:An | | | | have eased. For DCX to survive and grow a mutual |
| American president of the Chrysler Group, Jim Holden, | | | | trust and respect of German and American cultural |
| was replaced by a German appointee, Dieter Zetsche. | | | | differences and business practices is necessary. |
| This change occurred as Chrysler was experiencing | | | | Without both, renewed hostilities will surface and |
| difficulty in the marketplace; additional senior American | | | | potentially scuttle what is still perceived by many as to |
| personnel had also left and were replaced by German | | | | be a fragile business relationship.Copyright 2005 -- Matt |
| executives too. Some felt that the Germans were | | | | Keegan is a contributing writer for |
| imposing their will on the Americans.Billionaire | | | | Auto Parts Canada, a wholesaler of fine |
| shareholder Kirk Kerkorian who owned 36 million | | | | |
| shares of Chrysler before the merger and now held | | | | Mercedes parts and Mercedes Benz accessories for |
| significant number of shares of DCX stock, filed suit in | | | | your Mercedes Benz truck, van, SUV, or passenger |
| 2000 alleging that certain Daimler-Benz officials has | | | | car. |