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The Alliance of Daimler-Chrysler Today

At the time of writing, the Daimler-Chrysler alliance had run into considerable trouble. By the time you are using this text book, the company's situation may have worsened or improved. How is the alliance doing now? Research the events, successes, and problems that Daimler-Chrysler AG has experienced so far and report to the class. Were the problems discussed in this chapter avoidable? Are the strategic goals, which led to the alliance, still attainable?

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At the time of writing, the Daimler-Chrysler alliance had run into considerable trouble. By the time you are using this text book, the company's situation may have worsened or improved. How is the alliance doing now? Research the events, successes, and problems that Daimler-Chrysler AG has experienced so far and report to the class. Were the problems discussed in this chapter avoidable? Are the strategic goals, which led to the alliance, still attainable?

The alliance is still not doing well. Chrysler has suffered a series of setbacks in recent years, culminating in DaimlerChrysler's agreement to sell the unit to Cerberus Capital Management in May 2007 for $6 billion. Chrysler has been the third largest of the "Big 3" US auto makers; however, in January 2007, DaimlerChrysler also outsold traditionally second place Ford, though behind General Motors and Toyota.
Chrysler reported losses of $1.5 billion in 2006. It then announced plans to lay off 13,000 employees in mid-February 2007, close a major assembly plant and reduce production at other plants in order to restore profitability by 2008 (Car and Driver, 2007).
The so ...

Solution Summary

This solution discusses the alliance between Daimler and Chrysler, how it is doing now and discusses the successes, issues, and failures they have experienced since the merger. The solution cites two references and is approximately 700 words in length.

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