What are your recommendations to make the merger work? What additional issues and initiatives should Daimler/Chrysler management consider?.
Where the public at large is concerned, the tradition of a company is one of the most important resources for brand image. While corporate structures change, the tradition of the individual brands represents a reliable constant. In 1998, two companies steeped in tradition - Daimler-Benz AG and Chrysler Corporation - merged. They actively shaped, and left their mark on, every chapter in the history of the motor vehicle. These successful traditions are among the most valuable and sacrosanct assets of DaimlerChrysler. They testify to a distinctive corporate culture and require careful nurturing to be made comprehensible and emotionally accessible for the public at large. Cultivating tradition is therefore the most important assignment of DaimlerChrysler management. DaimlerChrysler is defending their image, using the "Guidelines for DaimlerChrysler Brand Management" and maintaining the divisions as they work together to increase efficiency and value. Since the 1998 merger that made the first truly global car company, DaimlerChrysler has continued to acquire more brands. DaimlerChrysler recently purchased Detroit Diesel, a heavy-duty diesel engine manufacturer, and Western Star, a heavy-duty truck manufacturer, to complement its Freightliner and Sterling brands. To increase its presence in the Asian market, DaimlerChrysler purchased a 34% stake in Mitsubishi Motors Corporation (MMC), and purchased Volvo's 3.4% stake of Mitsubishi Heavy Industries. DaimlerChrysler now has the arduous task of properly melding these mergers and acquisitions to realize the potential synergies. Modern, up-to-date factories exist in both Europe and North America, unparalleled brand recognition exists with the Mercedes-Benz line, and the corporation has a significant market share in the over-the-road truck market.
