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Case Study

DaimlerChrysler board: After the deal is done

By Ulrich Steger, Franz-Friedrich Neubauer and George Rädler

11 pages

August 2000

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Reference: IMD-3-0772

The merger of Daimler and Chrysler stunned the business world when it was announced in May 1998. But what happened since? This case looks at the strategic challenges and the corporate governance issues of this mega-merger. Although DaimlerChrysler announced record revenues and profits, the company’s share price had declined 40% over a 12-month period. This difficult situation certainly attracted the board’s attention. The case first outlines the on-going changes in the automotive industry as well as a list of issues within DaimlerChrysler. The case then raises the issues of corporate governance. Being a truly global company, DaimlerChrysler had to satisfy many different stakeholders. But how could the board overcome the conflicting goals of various stakeholders? The case can either be used as a stand-alone or in conjunction with IMD GM 771 (DaimlerChrysler: Involvement of the Boards).

Keywords

Corporate Governance, Board of Directors, Consolidation, Automotive

Settings

Europe, United States of America
2000

Type

Field Research

Available Languages

English

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