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DaimlerChrysler

American Government Special Collections Reference Desk

DaimlerChrysler
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Wikipedia: Daimler AG

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The parent company of Chrysler, Dodge and Mercedes-Benz, formed from a merger between Chrysler and Daimler-Benz from 1998-2007.

Advertising slogans include:
Five Star. It's Better. We'll Prove It. (for advertising the Chrysler Group branded dealerships)

History

The following section is an excerpt from Wikipedia's Daimler AG page on 14 February 2019, text available via the Creative Commons Attribution-ShareAlike 3.0 Unported License.

In a so-called "Merger of Equals," or "Marriage made in Heaven", according to its then CEO and architect Jürgen E. Schrempp, Daimler-Benz AG and United States-based automobile manufacturer Chrysler Corporation, the smallest of the main three American automakers, merged in 1998 in an exchange of shares and formed DaimlerChrysler AG. Valued at US$38billion, it was the world's largest ever cross-border deal.

The terms of the merger allowed Daimler-Benz's non-automotive businesses such as Daimler-Benz InterServices AG, "debis AG" for short, (created in 1989 to handle data processing, financial and insurance services, and real estate management for the Daimler group) to continue to pursue their respective strategies of expansion. debis AG reported revenues of $8.6 bn (DM 15.5 bn) in 1997.

The merger was contentious with investors launching lawsuits over whether the transaction was the 'merger of equals' that senior management claimed or actually amounted to a Daimler-Benz takeover of Chrysler. A class action investor lawsuit was settled in August 2003 for US$300 million while a suit by billionaire investor activist Kirk Kerkorian was dismissed on 7 April 2005. The transaction claimed the job of its architect, Chairman Jürgen E. Schrempp, who resigned at the end of 2005 in response to the fall of the company's share price following the transaction. The merger was also the subject of a book Taken for a Ride: How Daimler-Benz Drove Off With Chrysler, (2000) by Bill Vlasic and Bradley A. Stertz.

Another issue of contention is whether the merger delivered promised synergies and successfully integrated the two businesses. Martin H. Wiggers' concept of a platform strategy like the VW Group, was implemented only for a few models, so the synergy effects in development and production were too low. As late as 2002, DaimlerChrysler appeared to run two independent product lines. Later that year, the company launched products that appeared to integrate elements from both sides of the company, including the Chrysler Crossfire, which was based on the Mercedes SLK platform and utilized Mercedes's 3.2L V6, and the Dodge Sprinter/Freightliner Sprinter, a re-badged Mercedes-Benz Sprinter van.

In 2000, DaimlerChrysler acquired the Detroit Diesel Corporation and placed its on-highway division under Daimler Trucks North America. The off-highway division was placed under MTU Friedrichshafen to form'MTU America. Detroit Diesel branding has been maintained by DTNA and MTU America. In 2005, MTU-Friedrichshafen was sold to the Swedish investment firm EQT Partners.

Daimler agreed to sell the Chrysler unit to Cerberus Capital Management in May 2007 for US$6 billion. Through most of its history, Chrysler has been the smallest of the "Big 3" U.S. automakers, but in January 2007, DaimlerChrysler, excluding its luxury Mercedes and Maybach lines, also outsold traditionally second place Ford, though behind General Motors and Toyota.

Chrysler reported losses of US$1.5 billion in 2006. It then announced plans to lay off 13,000 employees in mid-February 2007, close a major assembly plant and reduce production at other plants in order to restore profitability by 2008.

DaimlerChrysler had reportedly approached other carmakers and investment groups to sell Chrysler in early 2007. General Motors was reported to be a suitor, but on 3 August 2007, DaimlerChrysler completed the sale of Chrysler Group to Cerberus Capital Management. The original agreement stated that Cerberus would take an 80.1 percent stake in the new company, Chrysler Holding LLC. DaimlerChrysler changed its name to Daimler AG and retained the remaining 19.9% stake in the separated Chrysler.

The terms saw Daimler pay Cerberus US$650 million to take Chrysler and associated liabilities off its hands. Of the US$7.4 billion purchase price, Cerberus Capital Management was to invest US$5 billion in Chrysler Holdings and US$1.05 billion in Chrysler's financial unit. The de-merged Daimler AG received US$1.35 billion directly from Cerberus but directly invested US$2 billion in Chrysler itself. Chrysler filed bankruptcy in 2009.


Reference Desk

The Crittenden Automotive Library's "Reference Desk" is a collection of materials that cannot be shared due to copyright restrictions. Information from these resources, however, can be shared. Go to the Reference Desk page for more information.

TypeTitle
1999 BookElectrical Diagnosis 2 Student Workbook; DaimlerChrysler Corporation


Article Index

DateOriginal PublisherArticleAuthor
30 April 1998SECRETARY SLATER ANNOUNCES PARTNERSHIP TO COMBAT RED LIGHT RUNNING NATIONWIDEFederal Highway Administration
4 September 1998Two of Three See Other Drivers Run Red Lights Every Day, Says Survey As National Stop on Red Week BeginsFederal Highway Administration
20 April 1999U.S. Transportation Secretary Slater Applauds Daimler Chrysler for Funding Alabama Crash Research CenterNHTSA
31 May 2001NHTSA Releases Chrysler and Dodge Minivan Crash Test RatingsNHTSA
28 July 2001DaimlerChrysler: Hoping New SUV Sales Will Soar John Birchard, VOA News
19 December 2001Building soon for DaimlerChrysler - Multi-Million ' Contract for AVLAVL List Gmbh
17 May 2002DaimlerChrysler's Parts Suggested Stock Order Application Deployed by Reynolds and ReynoldsReynolds and Reynolds
28 November 2002TI AUTOMOTIVE TO SUPPLY COMPONENTS TO CHRYSLER GROUPTI Automotive
19 May 2003The National Vehicle and Fuel Emissions Laboratory Event with DaimlerChrysler and UPS, Ann Arbor, MichiganChristine Todd Whitman
5 September 2003DaimlerChrysler Named One of America's Safest CompaniesMargot B & Associates
17 November 2003CALLCOMMAND APPROVED BY CHRYSLER GROUP AS PREFERRED MARKETCENTER SUPPLIERCallCommand
9 February 2004GKN Earns 2003 Global Supplier Award from DaimlerChryslerGKN Driveline Americas
23 April 2004DaimlerChrysler Withdraws Financial Support from Mitsubishi MotorsSteve Herman
17 May 2004Mitsubishi Motors Struggles Could Affect Several Companies>John Birchard
6 December 2004Schröder legt Grundstein für Autofabrik in ChinaWikinews
11 December 2004Staatsanwaltschaft ermittelt beim Automobilkonzern DaimlerChryslerWikinews
21 March 2005Leipziger Mercedes-Chef muss gehen Wikinews
6 April 2005DaimlerChrysler podría cerrar fábrica en Brasil Wikinoticias
28 July 2005Daimler-Vorstandsvorsitzender Schrempp verlässt den Konzern Wikinews
29 July 2005Schrempp geht ohne Abfindung Wikinews
24 January 2006DaimlerChrysler Slashes 6000 JobsVOA News
26 January 2006DaimlerChrysler verkleinert Vorstand und Verwaltung Wikinews
5 July 2006Daimler-Chrysler Seeks Big Profits with Small Smart Car George Dwyer
28 September 2006DaimlerChrysler to Sell Low-Cost Chinese-Made Cars in the US Mil Arcega
26 January 2007Daimler Chrysler Board Chairman Sees Diesel AlternativeJohn Birchard, VOA News
31 January 2007Chrysler's Shake-up Leads To Waning Worker's ConfidenceAnthony Fontanelle
7 February 2007DaimlerChrysler's Commitment to Alternative Fuels OutlinedAnthony Fontanelle
10 February 2007DaimlerChrysler gibt Teil des eigenen EADS-Anteils ab Wikinews
13 February 2007Chrysler Workers Fear The Worst Is Yet To ComeAnthony Fontanelle
13 February 2007Chrysler, Off To Unfold The Biggest Gamble EverAnthony Fontanelle
14 February 2007DaimlerChrysler plans to cut 13,000 jobsWikinews
15 February 2007Magna Lends a Hand to Provide Ingenious Seating for Chrysler MinivansAnthony Fontanelle
16 February 2007Chrysler Exec's Change of Tune Rattles NervesAnthony Fontanelle
16 February 2007Chrysler's ‘Valentine Bomb' Explodes At Auburn HillsAnthony Fontanelle
16 February 2007Could 13 New Models Lift Chrysler's Mess?Anthony Fontanelle
16 February 2007Daimler: Fix Chrysler Or Else...Anthony Fontanelle
16 February 2007Is DaimlerChrysler Facing Divorce?Anthony Fontanelle
16 February 2007Kapitalanleger verloren Sammelklage gegen DaimlerChrysler-Konzern Wikinews
20 February 2007DaimlerChrysler Aids Tornado VictimsAnthony Fontanelle
6 March 2007Chrysler Reports Increased Sale Outside North AmericaAnthony Fontanelle
21 March 2007Chrysler Group Dealers Need Company UpdateAnthony Fontanelle
23 March 2007Chrysler Group to Unveil Concept Vehicles at New York Auto ShowAnthony Fontanelle
29 March 2007Daimler Expands Plug-in Hybrid ProgramAnthony Fontanelle
30 March 2007Chrysler Vehicles to be Equipped with Backseat TV™Anthony Fontanelle
4 April 2007DaimlerChrysler: Zetsche bestätigte Verkaufsgespräche wegen der US-Tochter Chrysler Wikinews
4 April 2007DaimlerChrysler Chief Says Chrysler is For SaleVOA News
10 April 2007Where Is DaimlerChrysler Heading?Anthony Fontanelle
14 May 2007Daimler trennt sich von Chrysler Wikinews
14 May 2007DaimlerChrysler to sell Chrysler Group for $7.4 BillionWikinews
4 August 2007DaimlerChrysler: US-Tochter Chrysler für 7,4 Milliarden US-Dollar verkauft Wikinews


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