Daimler: Global Knowledge Sourcing and Research

Abstract

Between 1997 and 2007, Daimler-Benz went through several major mergers and demergers. In 1997, before the merger with Chrysler, Daimler-Benz turned over more than US$ 69 billion (DM124 billion) and employed a work force of more than 300,000 world-wide. There were 23 business units in four divisions: Passenger Cars, Commercial Vehicles, Aerospace, Services, as well as in the directly managed industrial business units (rail systems, microelectronics, diesel engines and others). Eight years later, in 2005, DaimlerChrysler AG turned US$ 176.7 billion and employed a work force of more than 380,000 world-wide. After the divestment of its Aerospace business, DaimlerChrysler had four divison again: Mercedes Car Group, Chrysler Group, Commercial Vehicles and Financial Services. In 2007, Chrysler was sold to Cerberus, in a move that raised share prices for the new Chrysler and Daimler.

This case study was authored by Dr. Maximilian von Zedtwitz when he was a research associate at the Institute for Technology Management, University of St. Gallen, Switzerland. The case study is based on Vöhringer (1997: 330–335) and a number of research interviews. In 1998, Daimler-Benz merged with Chrysler. This case study was written before this merger: The reader should keep in mind that all numbers, figures, organization charts and forecasts represent the state of 1997 or before. The case study was revised by Tamara Iskra Alcántara Concepción.