Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Blogs
May 09, 2018 01:00 AM

Lessons learned from DaimlerChrysler

Richard Johnson
Richard Johnson is Print Editor for Automotive News.
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Every merger or acquisition is a learning opportunity for the auto industry, but no deal serves up as many lessons as DaimlerChrysler. That's why the 20th anniversary of the unveiling of the now defunct and debunked "merger of equals" is an occasion worth noting.

    Conventional wisdom is that the combining of Daimler-Benz with Chrysler Corp. failed because of a clash of cultures. But that's an oversimplification. Companies with utterly different national and corporate cultures can thrive together, as shown by the success of Renault and Nissan, Geely and Volvo, Tata and Jaguar Land Rover, and Fiat and Chrysler. In each of those examples, however, a key individual rode herd — namely, Carlos Ghosn, Li Shufu, Ratan Tata and Sergio Marchionne.

    DaimlerChrysler missed out on enlightened leadership.

    History has it that Daimler-Benz was insensitive to Chrysler's culture as it pushed its people and processes onto the American company. But another theory holds that Daimler failed to go far enough to find synergies and unlock value. This notion is that the Germans should have been less deferential to Chrysler, not more.

    In most industries, quick and merciless assimilation of a newly acquired company is best practice.

    Yet it was sensitivity to culture, brand and engineering that revived Nissan, JLR and Volvo, even while Renault, Tata and Geely controlled the purse strings and called the shots.

    In fact, the disastrous outcome of DaimlerChrysler was because, from the beginning, neither side willingly made concessions.

    Egos ran rampant. Indeed, given the false pretense that the two companies were "equal," the merger was set up to fail.

    Fortunately, the auto industry has learned from DaimlerChrysler. Among the takeovers that have led to turnarounds in recent years, synergies were realized without trying to jam ill-fitting cultures together. Also, acquired companies have been free to continue doing what they do better than their new owners.

    In the flourishing partnerships of the post-DaimlerChrysler era, the rules were established upfront, and egos were checked at the door.

    RECOMMENDED FOR YOU
    Why Ferrari will keep making V-12s for as long as possible
    Recommended for You
    Ferrari Purosangue rear 2023
    Why Ferrari will keep making V-12s for as long as possible
    Evangelist graphic
    Why it helps CTOs to be 'a kind of evangelist'
    Mazda MX-30 plug-in hybrid world debut Brussels show 2023
    Brussels auto show could rise to level of dented Geneva
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us