When Germany's Daimler-Benz and America's
Chrysler united in 1998, both companies announced their combination as a "merger
of equals." The website of the new transglobal company seems to confirm
this, with equal attention (both texts and graphics) being paid to the headquarters
in Stuttgart and in Auburn Hills/Michigan, as well as to Mercedes-Benz and Chrysler
vehicles. The official language of DaimlerChrysler is English, but the Chairman
is Jürgen Schrempp, and most media analyses stress that the Germans are in charge.
Is the "merger of equals" slogan merely a public
relations ploy?
Although the stock prices have remained below
expectations, both partners stand to gain from the fusion: They complete their
product lines (Mercedes had
no SUVs, Chrysler no luxury cars); Mercedes' reputation for quality will complement
Chrysler's highly praised purchasing and product development processes; Daimler-Benz's
worldwide distribution experience matches Chrysler's global supply base.
The fusion was based on a series of intercultural
clashes and compromises: Will planning be detailed and long-range (Daimler-Benz)
or will it be more spontaneous and creative (Chrysler)? - Daimler-Benz won this
battle. Will first names be used (Jürgen and Bob)? - Chrysler was the victor
here (but no "du"!). Will smoking be allowed at meetings? (Jürgen Schrempp could
not attend meetings unless this were the case…) The merger threatened to break
down on the following issue: Should the American-size calling
cards be used, or the slightly larger German ones?? (The Germans won, and,
coincidentally, Bob Eaton, the CEO
of Chrysler, has resigned.)
One student predicted that within five years
DaimlerChrysler will be called simply "Daimler." What do you think?!
Newsflash: On 1 February 2003 DaimlerChrysler announced
that it is restructuring its management board, leaving only one American out
of 11 members!
See Detroit
Free Press report