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DaimlerChrysler: Merger Or Acquisition?

In 1998 Daimler-Benz and the Chrysler Corporation tied the knot. The newly created DaimlerChrysler [DCX] conglomerate was touted in the business world as a merger of equals with both companies retaining their unique and distinct identities. Soon after the merger the honeymoon period abruptly ended and the rancor began. Diametrically opposite management and cultural differences contributed to deep divisions which nearly scuttled the new relationship. Today, things are much different than they were in 1998; however it remains to be seen whether the long term partnership between the German and American automakers will outlast the deep, mutual distrust that prevailed for so many years.

A changing global automobile market during the final decade of the 20th century signaled the end of small, independent automakers. Although fairly large in size, the Chrysler Corporation, which nearly vanished in the early 1980s, was once again nearing a crisis point: a rapidly changing market meant that large amounts of cash would be needed to keep their product line up to date as well as to take their product to emerging and lucrative new markets. Unlike in the early 1980s when the US federal government stepped in with much needed cash, no government suitor was expected this time around. For Chrysler, the long term strategy strongly suggested that the automaker would have to be acquired in order to survive. In stepped Daimler-Benz.

At first, the merger was hailed as the deal of the century. The combined automakers, roughly the same size, quickly became the fifth largest automaker in the world. Combining German engineering – Mercedes being the principle business – and North American marketing – the Jeep line and the Chrysler minivans being the biggest draw – many envisioned that the new company would quickly capture a bigger slice of the global market. Unfortunately, the dream was nearly scuttled and for the following reasons:

An American president of the Chrysler Group, Jim Holden, was replaced by a German appointee, Dieter Zetsche. This change occurred as Chrysler was experiencing difficulty in the marketplace; additional senior American personnel had also left and were replaced by German executives too. Some felt that the Germans were imposing their will on the Americans.

Billionaire shareholder Kirk Kerkorian who owned 36 million shares of Chrysler before the merger and now held significant number of shares of DCX stock, filed suit in 2000 alleging that certain Daimler-Benz officials has committed “fraud and deceit” in orchestrating the merger.

Adding fuel to the fire was the closing out of the Plymouth brand. Already suspicious of German intentions and knowing full well that the “merger of equals” was, in fact, an acquisition of Chrysler by Daimler-Benz, the ending of the Plymouth brand escalated fears that the Chrysler Group would fade into the background.

Fortunately, time has eased some of the friction and the Chrysler Group [defined as the part of DaimlerChrysler that was at one time the Chrysler Corporation] has benefited from the merger in several ways, including:

New Mercedes inspired products. The Chrysler Crossfire was the first of several new Mercedes inspired products to find their way into the Chrysler Group. Made in Germany, the Crossfire is essentially a rebadged Mercedes roadster, a model that the top of the line Chrysler division never had.

Strengthening of the Dodge name. Already a decent performer, the Dodge division has received several Mercedes M class inspired models including the Magnum and the Charger. The Viper has been redone, the Ram trucks updated, and the Neon is in the process of being replaced. Dodge market share is increasing even in the face of strong foreign competition.

Fresh blood for Jeep. An all new 7 passenger Commander has hit the streets and additional products are being planned.

Likely, Mercedes would have survived without a merger, while Chrysler would not have. Overcoming strong cultural differences – German authoritarian vs. American creativity – has kept the company afloat. Some are crediting Zetsche’s understanding of the American company and culture with easing tensions, thus allowing the companies to benefit from what they have in common versus their differences.

Certainly, the rancor that existed just a few years ago seems to have eased. For DCX to survive and grow a mutual trust and respect of German and American cultural differences and business practices is necessary. Without both, renewed hostilities will surface and potentially scuttle what is still perceived by many as to be a fragile business relationship.reverse cell phone lookup|reverse cell phone lookup| reverse cell phone lookup


Used Cars Sale EBay, The Most Profitable Sales

Ebay Cars For Sale. Are you racking your brains trying to find out where there are cheap muscle cars for sale?

Oh for a time machine to take us back to the early 70’s when we could have got a great Pontiac, cherished it and have a great muscle car for the 21st century.

But, short of waiting around for someone to invent a time machine any minute, we’re going to have to look elsewhere.

There are a few options open to you, some fair better than others. But it’s worth trying them all.

1. Ebay. I don’t know if you’ve already thought of looking here but do consider it as you can quite easily find a treasure. I don’t know whereabouts in the Country you are reading this, but don’t be put off because Ebay is nationwide. Local (to you) sellers also use Ebay and infact, there’s a website that exists that lists muscle cars for sale on Ebay too. Of course, you’ll have to bid and you may come across stiff competition. There again, you may not. It’s a bit of a gamble but if you’re serious about your muscle cars this may be an avenue worth investigating.

2. Another option, but the one that involves the most work and dedication, is to go out and find one for yourself. By this I mean; drive around and if you happen to see a classic muscle car, sitting all forlorn in someone’s yard – take the plunge and find out if the owner’s interested in parting with it for cash. I’ve actually known this work for some people, so at least consider it. Chances are if the car’s just collecting cobwebs, the owner may not know its worth & you could end up with a real bargain.

3. Don’t overlook the obvious alternative to both of the above when looking for cheap muscle cars for sale. Scour your local newspaper. Chances are that a local seller isn’t going to be a collector & so won’t be asking an extortionate price. Once again you could make a steal whilst leaving the vendor with a smile on his face at the same time.

4. Lastly, & by no means least. Turn your attention towards the online auction sites that have police or government seized cars for sale. I know that the majority of the cars that they seize are only a few years old but occasionally they have also been known to repossess classic muscle cars. You have to become a member of these sites, but by doing so you have immediate access to over 3000 updated auctions nationwide. Some sites even offer live auctions. It’s a great way to see exactly what classic muscle cars are out there. Again, these sites also guarantee to have auction sites that cater for your State. So if you find one that you’re after you won’t have too far to go. Using this option to find the muscle car of your choice means that you can be a step ahead of everyone else that’s looking. Find more information about Used Cars For Sell here.

For vital tips about car finance calculator – please make sure to study this web site. The time has come when concise info is truly within your reach, use this chance.


Worrying Times For The Motor Industry?

From 1st July 2007 the UK bans smoking in enclosed public places with as many as 600,000 people forecast to quit smoking as a result. This article looks at if charging people to drive will have similar results for the Motor Trade.

In The Beatles classic song Taxman the lyric goes, “We’ll tax your feet”. Whilst the government hasn’t yet decided to do this it seems the introduction of “pay as you drive” schemes may soon be hitting the roads of the UK but what impact (if any) will this have on the UK Motor Trade.

Well there appears to be a few factors that road users might want to consider:

1. If you’re a driver who drives infrequently or at less busy times you could end up paying less.
2. Or you might drive an average number of miles but due to you driving at rush hours (on you way to/from work or school) you will end up paying more money
3. You may want to use public transport more often
4. You and your friends may set up a car pool scheme so you take it in turns to drive
5. If you spend a lot of time on the road travelling to see friends and family maybe you won’t be able to visit them as often as before
6. If you spend time travelling for work maybe you won’t be able to visit customers as much or worse still increased transport costs may mean your less competitive or jobs have to be cut

And what about people in the Motor Trade itself?

If the smoking ban just announced makes people stop smoking then maybe forcing people to pay more to drive will mean people will simply drive less often. Therefore less cars are needed, less people are needed to service and repair them and jobs are lost in the Motor Industry.

Of course these are all what if’s as nobody really knows what impact this decision will have on the transport system, the motor trade or indeed modern life.

If maybe a positive move with a journey to work being halved due to less vehicles on the road. It may mean a change in the opening hours for businesses or schools so not everyone is fighting to get to and from work as the same time as the school run is being done.

It may mean more money is invested in public transport so we have buses, trains, tubes and other forms of transport that are reliable and we’d be happy using.

Or of course it may mean nothing changes apart from the fact that we have less money in our pockets.

If the results of this survey conducted by Northern Counties Insurance Brokers are anything to go by.

People were asked what impact will having to pay per journey have on you?

- 40% said no impact as they couldn’t live without their car

- 13% said they would stop driving altogether

- 6% said they would drive less often

- 21% said they would use public transpoty more often

- 11% said they would car share to cut costs

- 5% said they would walk more often

- 3% said they would still drive as often but at different times

Whatever your thoughts are on the governments new “pay to drive” schemes the chances are it will happen and the impact on the motor trade could be massive
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