The owners of the two firms can continue as co-owners of the merger and use resources of their separate companies to support the new entity
Daimler motives * To become a global player with interest outside its traditional west European base.
Chrysler motives * To gain competence in product technology and quality * Expand beyond North American market
The combination of Daimler and Chrysler would create potential of gaining high volumes, participation in all segments, innovation, adaptability, technology and quality excellence
The main problem in the DaimlerChrysler post-merger integration was that of corporate culture clash. The problem began with the vision of the new company which was a broad strategic intent and did not drive behaviour or a new corporate culture which was important in this cross border integration.
The abrupt change of direction from preservation mode to absorption because of the disappointment of the first 6 month earnings raised a lot of questions on whether the merger was actually a merger of equals.
There was no clear communication in what was happening in Chrysler which resulted in the departure of many key talents that had contributed to Chrysler’s success in the 1990.
Shremp’s confession about the merger being more of a takeover in the financial times put the company into a major credibility setback in the USA. This intensified the uncertainties at Chrysler and this ignited outrage in American media.…