Why did the "merger of equals" between Daimler and Crysler become, in essence, a takeover by Daimler?

[Random Variable]

I don't quite understand what happened.

 

[wyvrn]

Chrysler let them take over by giving them more key management positions. Daimler used that power to institute their policies.

 

[iamwiz82]

Zetsche is one hell of a CEO. He turned things around. It pissed off alot of people, but i give him credit. He turned things around nicely.

 

[CantedValve]

It ended up being for the best. They are turning out some really nice vehicles now, where I think their quality was questionable before.

 

[Shantanu]

Read this. They're interviews with Lee Iacocca.

 

[Nitemare]

There is no such thing as a merger in corporate america...just bigger fish eating smaller fish

 

[Nemesis77]

Because Daimler was a strong company with good management, whereas Chrysler was a lame duck waiting to be eaten?

 

[yakko]

I don't care who is in control as long as they make the Razor.

 

[308nato]

See world history in the 20th century relating to Germany and "merger" for your answer.

 

[WinkOsmosis]

Someone had to be the "man" in the relationship. Would you want Chrysler in charge of making your Benz??

 

[Zenmervolt]

When you get right down to the basic financials of it, Daimler-Bentz was the one spending the money to make the "merger" happen. Daimler-Bentz bought Chrysler. Daimler called it a merger and changed its name to Daimler-Chrysler to help the illusion and to generate better PR. As has been stated, Daimler was the stronger company anyway, and the stronger company usually ends up in control after a merger. .308 had a good point too, German's don't like it when they're not in charge. I've got more than enough German blood in me to know that first hand.

ZV

 

[rufruf44]

Originally posted by: Zenmervolt
When you get right down to the basic financials of it, Daimler-Bentz was the one spending the money to make the "merger" happen. Daimler-Bentz bought Chrysler. Daimler called it a merger and changed its name to Daimler-Chrysler to help the illusion and to generate better PR. As has been stated, Daimler was the stronger company anyway, and the stronger company usually ends up in control after a merger. .308 had a good point too, German's don't like it when they're not in charge. I've got more than enough German blood in me to know that first hand.

ZV

Quite true. They have to preserve the image of "somewhat" an american company (instead of on of the Big three got bought out) for PR reasons, and to avoid problem with the UAW until they're organized enough to tackle the union (well, more like get rid off the union if the German have their way).

 

[gotsmack]

I think it did start out as a merger of equals but then the Chrysler guys fked up and they were bringing the company down the toilet so the germans got mad and took control

 

[Shantanu]

Chrysler was a larger and more profitable company than Daimler-Benz, but DB bought them out (it's possible).

The biggest winners were American stockholders of DCX who at the beginning controlled 55% of the company. They have since sold most of their stock as the company's worth has declined. Now the company is mostly owned by European stockholders.

Bob Eaton, former CEO of Chrysler, was also a big winner. He pocketed $100 million a short while after the merger. Very scandolous...

The Germans have absolutely no idea what they're doing with Chrysler. Morale at the company is at an all time low. The Germans want to make Chrysler into some sort of passenger car company, saying that 2/3 of all new products will now be cars. Chrysler has never been about cars. At their peak, they were getting 75% of their sales from vans, trucks, and SUVs. The Germans have totally squandered any and all comparative advantages that Chrysler had. The Dodge Caravan used to be synonymous with minivans; Jeep with SUVs. The whole SUV segment exploded in the 1990's, and yet Jeep only has 3 models.

Chrysler's marketing used to be personality driven. They were the American pride brand. Now it's run by some mustachiod gestapo looking guy. Awful, just awful. Chrysler claims they are profitable now (before taxes at least), but it will still take a long time to make up for all their losses in the past few years. All the cost cutting (especially on new model development) will also be painfully obvious a few years from now.

 

[Evadman]

Originally posted by: yakko
I don't care who is in control as long as they make the Razor.

 

[iamwiz82]

Originally posted by: Shantanu
Chrysler was a larger and more profitable company than Daimler-Benz, but DB bought them out (it's possible).

The biggest winners were American stockholders of DCX who at the beginning controlled 55% of the company. They have since sold most of their stock as the company's worth has declined. Now the company is mostly owned by European stockholders.

Bob Eaton, former CEO of Chrysler, was also a big winner. He pocketed $100 million a short while after the merger. Very scandolous...

The Germans have absolutely no idea what they're doing with Chrysler. Morale at the company is at an all time low. The Germans want to make Chrysler into some sort of passenger car company, saying that 2/3 of all new products will now be cars. Chrysler has never been about cars. At their peak, they were getting 75% of their sales from vans, trucks, and SUVs. The Germans have totally squandered any and all comparative advantages that Chrysler had. The Dodge Caravan used to be synonymous with minivans; Jeep with SUVs. The whole SUV segment exploded in the 1990's, and yet Jeep only has 3 models.

Chrysler's marketing used to be personality driven. They were the American pride brand. Now it's run by some mustachiod gestapo looking guy. Awful, just awful. Chrysler claims they are profitable now (before taxes at least), but it will still take a long time to make up for all their losses in the past few years. All the cost cutting (especially on new model development) will also be painfully obvious a few years from now.

Morale is only low at the factories where workers have realized that they cant get by doing nothing! I'm sorry but american factory workers are lazy thanks to the UAW. My dad works for DCX(and has for 38 years) and is happy. Things are getting done and he finally has something to do. When the americans ran it, he rarely had things to do because projects were never carried out.

BTW, Zetsche is Turkish not German.

 

[Random Variable]

Originally posted by: Jellomancer
Someone had to be the "man" in the relationship. Would you want Chrysler in charge of making your Benz??

I can't afford a Benz, so I really don't give a damn.

Because Daimler was a strong company with good management, whereas Chrysler was a lame duck waiting to be eaten?

If Crysler was a lame duck, why the heck did Daimler want the company?

Quite true. They have to preserve the image of "somewhat" an american company (instead of on of the Big three got bought out) for PR reasons, and to avoid problem with the UAW until they're organized enough to tackle the union (well, more like get rid off the union if the German have their way.

It's so stupid when foreign companies retain the brand names of American products (e.g., RCA).

Chrysler's marketing used to be personality driven. They were the American pride brand. Now it's run by some mustachiod gestapo looking guy. Awful, just awful.

It's for the good of the global economy (whatever that means).

 

[Soybomb]

Originally posted by: Shantanu
Chrysler was a larger and more profitable company than Daimler-Benz, but DB bought them out (it's possible).

The biggest winners were American stockholders of DCX who at the beginning controlled 55% of the company. They have since sold most of their stock as the company's worth has declined. Now the company is mostly owned by European stockholders.

Bob Eaton, former CEO of Chrysler, was also a big winner. He pocketed $100 million a short while after the merger. Very scandolous...

The Germans have absolutely no idea what they're doing with Chrysler. Morale at the company is at an all time low. The Germans want to make Chrysler into some sort of passenger car company, saying that 2/3 of all new products will now be cars. Chrysler has never been about cars. At their peak, they were getting 75% of their sales from vans, trucks, and SUVs. The Germans have totally squandered any and all comparative advantages that Chrysler had. The Dodge Caravan used to be synonymous with minivans; Jeep with SUVs. The whole SUV segment exploded in the 1990's, and yet Jeep only has 3 models.

Chrysler's marketing used to be personality driven. They were the American pride brand. Now it's run by some mustachiod gestapo looking guy. Awful, just awful. Chrysler claims they are profitable now (before taxes at least), but it will still take a long time to make up for all their losses in the past few years. All the cost cutting (especially on new model development) will also be painfully obvious a few years from now.

Most accurate answer yet........many of chrysler's current successes were well on their way to being built before the merger and many suspect that now they will not have as much freedom and creativity. Jeep is already being taken down a notch, the liberty is a sad excuse for a jeep. It should be the durango's little brother.


This page has alot of links to editorials and commentaries on the merger. I don't feel as though it will be good for chrysler in the long run.....

 

[0roo0roo]

only reason to buy chrysler b4 was cuz they were american. now there is no reason at all. damn germans.

 

[sandorski]

Hmm, if you had a choice between a Mercedes and a Chrysler, which would you choose? I'm a Chrysler fan, but I'd choose a Mercedes over a Chrysler any day.

Would you like Mercedes to become more like Chryslers or Chryslers to become more like Mercedes Benzs?

 

[thedarkwolf]

Originally posted by: sandorski
Hmm, if you had a choice between a Mercedes and a Chrysler, which would you choose? I'm a Chrysler fan, but I'd choose a Mercedes over a Chrysler any day.

Would you like Mercedes to become more like Chryslers or Chryslers to become more like Mercedes Benzs?

Of coarse I would take the Mercedes. I could sell it and buy three Chryslers. I sure as hell don't want Chrysler to become more like Mercedes. I can actually afford a Chrysler.

The Dodge Razor will NOT be built because Mercedes won't let them build anything new unless they think it will sell a 100k units. Thanks Mercedes .

 

[0roo0roo]

heh yea the mercedes is if you can afford it and the upkeep

i think i'd just buy the toyota instead

 

[heartsurgeon]

Chrysler let them take over

whaaaaat?
Mercedes-Benz BOUGHT them. Chrysler SOLD themselves to Mercedes.. that made them Mercedes Be-Hatch.

now the real joke is that the Mercedes is worth less in aggregate now, than before it owned Chrysler! ha ha ha we sold the Germans a white elephant!! reminds me of when the japanese bought the Pebble Beach golf course for zillions, and then got burned and sold it back to some americans at a huge loss.

world wide, there is a glut of cars being made - this is driving the car makers to consolidate in an effort to attain savings of scale and size. the stronger companies will aquire the weaker one's.
or at least thats what the "economists" forecast.

even crazier, what's up with Volkswagen (the "people's car") owing Roll's Royce and Bugatti? I'm getting a really bad headache......