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Merger Of Daimler Benz And Chrysler Corp. How A Merger Of Two Companies Affect And Is Affected By The Global Market

1297 words - 5 pages

Legendary German car producer Mercedes-Benz a member of Daimler-Benz married with its US American colleague Chrysler Corp. These two "boys" want to become together the most profitable carmaker worldwide. After some "illnesses" of the American brother the company Daimler-Chrysler is on the way to make it. But on the way to become the leader they must influence others. They must also influence the global market and will be influenced by the global market itself. And they try it with a lot of new models coming to the market every single year, huge investments all over the world. How is it actually possible that two companies can have such an affect on the global market? Let's have a closer look at it.Daimler-Chrysler is a multinational corporation of two big car producers. Today it is the world's fifth biggest car producer. The first group Daimler-Benz is a German producer of Mercedes-Benz, Maybach, smart and Setra. The second one Chrysler Corp. is a maker of American car brands such as Chrysler, Jeep, Pontiac, Dodge and trucks Freightliner, Western Star, and Sterling. The merger of Chrysler and Daimler-Benz is the biggest between two enterprises in industrial history. Promising a world's most profitable carmaker by Daimler Benz CEOJuergen E. Schrempp, the merger occurred in 1998. The reality wasn't as he thought. It wasn't that kind of easy thing. From the beginning there have been problems especially at Chrysler.Chrysler Corp. was in troubles. The brand wouldn't have existed anymore without his German parent. Chrysler CEO said: "its unpopular models, inefficient factories, and weak brand image have defied the efforts for a quick turnaround". The company managed a loss five years in a row. It was necessary something to happen to turn the Chrysler Corp. to black numbers. With the help from Daimler-Benz they invested money to building new factories, creating new and better models and setting new image. Chrysler came out of loss and achieved a profit of 1.4 bio in 2004 (Business report 2005).But what has this actually to do with international economics? Let's have a closer look at it. Daimler Chrysler is a multinational corporation with over 380,000 employees worldwide. The Group offers automotive products and associated financial services mainly in Europe and the NAFTA region and has factories in 17 countries such as Germany, USA, Canada, Japan, Brazil, South Africa, Mexico, Spain and Turkey and newly according to "Teheran Times", Iran will soon produce engines for Mercedes-Benz (Business Report, 2005). It has a strong influence on the employment in those countries over 100,000 employees without USA and Germany. This is close related to investments in those countries. The Group invested in last five years over 30 bio and plans to invest in years 2005 - 2007 over 38 bio (Business Report, 2005). This amount has a strong influence on the economics in those countries. For example another car producer Kia motors is going to invest in Slovakia...

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