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Chrysler Daimler Merger: Reason for Failure

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Chrysler chose merger as a strategy in 1998 when it merged with Daimler, a German automobile manufacturer. This merger was not successful. Why, in your view, did this merger fail?

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There was too large of a gap between Chrysler and Daimler's corporate cultures for the merger to be successful. Daimler, a German company, was described as ""conservative, efficient and safe," (Kwintessential, 2013) whereas Chrysler was much different focused on creativity and change. Daimler's structure had a clear, traditional chain of command, with authority being respected at the top of the pyramid. In contrast, Chrysler favored an egalitarian approach, and work was often accomplished through teams. Chrysler's teams focused on creating "catchy designs and offering their cars for competitive prices"(Kwintessential, 2013) whereas Daimler was focused on reliability and ...

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This solution includes APA formatted references and discusses why the Chrysler Daimler merger failed

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Failure of Merger & Acquisition

> Discuss reasons why an M&A fails, such as technical and legal insolvency, and bankruptcy.
> Consider what happens to the stakeholders, company image, price-per-share, market share, company assets, industry position, goodwill, and service capability. Once the failure of an M&A occurs, what happens to assets of both companies?
> Compare and contrast two to three forms of corporate restructuring. Would you recommend any of the following?

o Spin-offs
o Divestitures
o Liquidation
o Carve-out

> Defend your position.

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