The Chryseler and Daimler Merger

The Chryseler and Daimler Merger
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In the year 1998 Daimler-Benz and Chrysler corporation decided to merge in the so called a merger of equals. The two companies are world’s leading motor vehicle manufacturers. The merger that took a year to finalize became the world’s largest automobile (Hill, & Jones, 2009). In terms of revenue, earnings and market capitalization the merger was ranked the third and the fifth in terms of number of units sold. Here in is the discussion of the merger, the background of the two companies and what went wrong in the merging as well as the current situation of the companies.
Chrysler was established in the year 1924 under the Walter P Chrysler in New York as an auto show. In the year 1925 the corporation was chartered as Delaware Corporation. Later they bought Dodge Brothers automotive launching two new brands (Hill, & Jones, 2009). In the year 1976 the company experienced financial troubles leading to Lee Iacocca to become the president. In 1990s the company had made some tentative moves with a motor production in Austria that produced right-hand driven jeeps. Jeeps gained popularity leading to reintroduction of older models such as Dodge viper sports, dodge ram pick-ups and front-wheel drive sedans (Hill, & Jones, 2009).
Daimler-Benz AG is a ge...