DaimlerChrysler

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DaimlerChrysler

DaimlerChrysler AG headquartered in Stuttgart, Baden-Württemberg (Germany) and Auburn Hills, Michigan (USA), is a prominent automobile and truck manufacturer and financial services provider (through DaimlerChrysler Financial Services). The company also owns a major stake in aerospace group EADS.

DaimlerChrysler was formed in 1998 by the merger of Daimler-Benz (Germany) and the Chrysler Corporation (USA). The transaction was announced on May 7, and took place on November 12. It was alleged in 2003 that it was not a merger but in fact a buyout.

The company produces cars and trucks under the brands Chrysler, Dodge, Jeep, Mercedes-Benz, smart, and Maybach, among others. The Chrysler Group (Chrysler, Jeep and Dodge) also provides its customers with parts and accessories marketed under the Mopar brand name.

Controversy

In 2002, the merged company appeared to run two independent product lines, with few signs of corporate integration. In 2003, however, it was alleged by the Detroit News that the "merger of equals" was, in fact, a takeover. The allegation came forth as new products such as the Chrysler Crossfire (using extensive Mercedes parts) and the Dodge Sprinter/Freightliner Sprinter (a rebadged Mercedes-Benz Sprinter van) came to market. Cooperation between the Mercedes Car Group and the Chrysler Group is expected to become markedly closer under CEO Dieter Zetsche.

The $36 billion merger became the focal point of several lawsuits, including one filed by billionaire investor Kirk Kerkorian, and also a book (Taken for a Ride: How Daimler-Benz Drove Off With Chrysler, (2000) by Bill Vlasic and Bradley A. Stertz). One class action lawsuit was settled in August 2003 for $300 million. On April 7, 2005, U.S. District Judge Joseph Farnan Jr., a University of Toledo graduate, presided over a bench trial in Wilmington, Delaware, and ruled in favor of DaimlerChrysler, rejecting Kerkorian's allegations.

DaimlerChrysler also has a software development and service center in Bangalore, India, under the name DCRTI (DaimlerChrysler Research and Technology India Pvt Ltd).

Leadership

Dieter Zetsche, former President and CEO of the Chrysler Group and the Mercedes Car Group, became the chairman of DaimlerChrysler on January 1, 2006.

Chairman Jürgen E. Schrempp resigned from his position at the end of 2005 as head of the world's fifth largest auto manufacturer. In an agreement with the board of directors and Schrempp, he terminated his employment with the company early (his contract ran through 2008). Schrempp has been blamed for the fall of the company's share price since Daimler-Benz's merger with Chrysler Corporation in 1998 of which he was the architect. Currently the Mercedes Car Group has reported losses while the Chrysler Group has reported gains of nearly (7%).

Current members of the supervisory board of DaimlerChrysler are: Heinrich Flegel, Nate Gooden, Earl Graves, Thomas Klebe, Erich Klemm, Hilmar Kopper, Arnaud Lagardère, Jürgen Langer, Robert Lanigan, Helmut Lense, Peter Magowan, William Owens, Gerd Rheude, Udo Richter, Wolf Röder, Manfred Schneider, Stefan Schwaab, Bernhard Walter, Lynton Wilson, and Mark Wössner.

DaimlerChrysler brands

DaimlerChrysler sells automobiles under a number of marques worldwide:

Mercedes Car Group
Chrysler Group
- Chrysler
- Dodge
- Jeep
- Eagle (discontinued in 1998)
- Plymouth (discontinued in 2001)
Commercial Vehicle Brands

Engine Brands
- Detroit Diesel
- Mopar
- MTU Friedrichshafen (sold to EQT in 2006)

Holdings

DaimlerChrysler once held a large stake in the Japanese car company Mitsubishi Motors as well as the car operations of Korean manufacturer Hyundai. Its stake in Mitsubishi was as high as 37%, but because it did not participate in a new capital increase in April 2004, was reduced to 22%. The company sold the last of its Mitsubishi stock to Goldman Sachs in November 2005. DaimlerChrysler sold its MTU Friedrichshafen and Detroit Diesel off-road business to EQT in 2006.

DaimlerChrysler currently holds interests in the following companies:

30.2% EADS (European Aeronautic Defence and Space Company), a parent company of Airbus (as of March 2006) — DaimlerChrysler announced in April 2006 that it intends to sell 7.5% of EADS for "approximately €2.0 billion" ^*
85.0% Mitsubishi Fuso Truck and Bus Corporation of Japan.
Freightliner, LLC

DaimlerChrysler sold its holdings in the following:

10.5% Hyundai Motor Company — Bought in 2000 and 2001 for US$572 million. Sold in August 2004 for US$900 million
37.1% Mitsubishi Motors of Japan (disposal of stake in mmC concluded on November 18, 2005)

Awards

DaimlerChrysler was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.

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