Chrysler and Daimler-Benz Merger

1 .Introduction

U .S . automaker Chrysler and German automaker Daimler-Benz have made a historic event in automobile sector by declaring the merge of DaimlerChrysler AG on 12th November , 1998 . DaimlerChrysler has a combined revenue of 130 billion and market of 92 billion and the company is positioned in fifth place among the largest automakers in the world . The activity of merger has strengthened the company for more innovation and more scope for introducing new models of cars and trucks Some of the major reasons for mergers , acquisitions and takeovers are the

first fact for merger would be to unite companies for gaining more market and to strengthen the capital assets and net worth of business Secondly , when an international company is losing its portion of market or if there is a sign of global economic fluctuation or an unforeseen risk for the company , in such instance also , the activity of merging with another company takes place . The activity of merger is considered as best due to the fact there is expansion , reorganizing , restructuring and more growth and productivity in the merged companies and of late there has been many mergers in international banking companies pharmaceutical companies and in thee recent times , Microsoft company was bidding on Yahoo to takeover another billion dollar Internet search engine . These are some of the best examples that mergers and acquisitions derive maximum benefits to the companies and even save companies from insolvency and bankruptcy . In the automobile sector there are giant companies which are manufacturing automobiles with advanced technology methods , viz , GM , Volkswagen Toyota , Ford and these branded automobiles have been winning the confidence of customers despite of stiff competition within the branded cars . The merge of DaimlerChrysler is another major international project in automobile sector

2 . How are international projects different

One biggest benefit of merger activity is to have access to global market such as opening up single European market which was ratified in Maastricht in 1992 which lead to the activity of mergers and acquisitions . International merger activity requires more focus on global workforce , consumer market , product marketing , marketing and campaigning apart from dealing with different cultures , corporate policies , aims , objectives and working environment that is necessarily being united and integrated for collective efforts in winning the global confidence . The tasks involve greater responsibility in terms of workforce , tangible and intangible assets , corporate culture organizational values which must be processed during the merger activity . It can be stated here that DaimlerChrysler was one of the world 's biggest merger activity among car companies whereas before the merger Chrysler was practicing a flexible style and Daimler was practicing a bureaucratic style . The activity of merger provides a great synergy and also creates resources for generating more wealth for merged companies . Easy flow of liquidity , strong business net worth expansion of markets , easy access to global consumer , international trade and good customer service are some of the benefits derived by international merger activity . International activities of mergers are more complex and involve huge...