Mba 573

Closing Case 1

DaimlerChrysler AG

Victoria Antsiferova,

Student ID: 20117747

MC 573

 International Business

James Caldwell

August 10, 2015

Table of Contents:

Chrysler company overview……………………………………………………………………3

Daimler company overview…………………………………………………………………….5

The merger of Chrysler and Daimler………………………………………………………….7

Questions and answers……………………………………………………………………….....7

References………………………………………………………………………………………10

Chrysler company overview

Chrysler Company(FCA US LLC) is an American car producer headquartered in Auburn Hills, Michigan. It is one of the big three American manufacturers and also the owner of Fiat Chrysler Automobiles with headquarters in London. Ones of the most common brands produced by Chrysler are:

1. Chrysler
2. Dodge
3. Jeep
4. Ram

The company was founded on June 6, 1925 by Walter Chrysler. The truth is, it was re-organized from the company Maxwell Motor. Two years later, the company started dividing the cars proposes into class and function. They have also introduced a new brand called “Plymouth” that was available at the low segment of the market(it was made by rebranding and reworking the four-cylinder model.)During the same year, Chrysler bought Dodge Brothers and continued successful production of vehicles.

In 1936 Chrysler had a second position in U.S. sales, by a virtue of testing and progressive engineering. Moreover, the company decided to give independence to Imperial(one of its brands of premium class model cars), to have as a separate division, but as a part of Chrysler in 1955. The division continued on its own until 1975, and also from 1982 to 1983. This step was made to have a better competitive advantage with Lincoln and Cadillac. Next, was the introduction of brand called “Valiant” in 1960. Chrysler concluded an agreement with American Motors Corporation (AMC) to manufacture platform rear-drive “Chrysler M”. In 1998, Chrysler entered into a "merger" with Daimler-Benz AG which led to the creation of DaimlerChrysler AG. At the same time, Jeep started to be a separate subdivision.(Chrysler History, 2015)

On May 14, 2007, DaimlerChrysler sold 80,1% of Chrysler to Cerberus Capital Management, L.P. The economic collapse of the following years strongly influenced at the company that was close to the bankruptcy. At the end of 2009 the sale of all the assets to “New Chrysler” was done.

After all, in 2011, the company repaid $7.6 billion loans to the governments of U.S.and Canada. “The US Treasury, through the Troubled Asset Release Program, invested $12.5 billion in Chrysler and recovered $11.2 billion when the company shares were sold in May 2011, resulting in a $1.3 billion loss. On July 21, 2011, Fiat bought the Chrysler shares held by the United States Treasury.”(About news, 2015)