Smartmerger Blog

Failed cross-border mergers: What we can learn from the Daimler-Chrysler case

Written by Michael Klawon | 28.September 2022

 

The world of business was greatly impacted by the May 7, 1998, revelation that Daimler-Benz AG and Chrysler Corporation sought to merge. This kind of publicity is extremely common. In Germany and the United States, respectively, Daimler-Benz and Chrysler were seen as being a part of their respective nations' national heritage. Daimler-Benz's strong engineering capabilities represented Germany's post-World War II industrial revival, whereas Chrysler was known as a car manufacturer that provided the American consumer with cutting-edge yet reasonably priced cars. However, the DaimlerChrysler merger also includes numerous components of a business thriller in addition to the companies' respective reputations as global icons of the automobile industry. By studying the failed Daimler-Benz AG and Chrysler merger, we want to discover some learning on how to plan, structure and support a merger.