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    Have Mergers and Acquisitions Helped Daimler Chrysler?

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    I'm doing a paper about Daimler Chrysler in regards of risk management challenges. I have a section about managing international acquisitions. Need to touch challenges, whether the merger or acquisitions have positively impact the company. Pros, cons, possible synergies, cost savings and moral issues.

    Need some help in this section.

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    Daimler-Chrysler merger created the world's fifth biggest car maker. The company is currently the third largest auto manufacturer. Thus we can clearly see that both firms benefited from the economies of scale advantage. Daimler could be able to make and sell more Mercedes more cheaply because it has acquired Chrysler, and vice versa. The $13 billion premium was another important advantage. The auto industry was facing severe problems with excess capacity during this period. So reducing the number of players in the global marketplace also decreased the chance of dramatic overbuilding. There was a synergy too. Companies had different but complementary product lines and there were no redundancies. For example Daimler-Benz was specialized in serving the high and luxury range car market while Chrysler had a medium-range car, van and sports-utility vehicle product lines. So there weren't any plant closures or lay-offs necessary after the merger that may have negative employment effects. Firms could be able to combine German engineering and technology with North American marketing so that they ...

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