Assignment 1

Assignment 1: Cultural Issues, Ethics

Case 12- Daimler-Chrysler Merger

July 15, 2010

1. What were the international strategic motivations affecting Daimler-Benz’s pursuit of other automobile manufacturers? Some of the motivations for Daimler-Benz’s trying to acquire Nissan and Mitsubishi was opening up markets shares in, Asia, paring of resources, and utilization and creation of interchangeable parts. These things would advance Benz into the next level and save money. Typically Mercedes-Benz’s top sales came from Europe then the US although some sales came from Asian countries having acquired Nissan and Mitsubishi would open more doors. Utilization, sharing, of parts would save money on the overall production. If the parts were now interchangeable they could take a Nissan engine add Benz tweaks for functionality but pay nearly half the price if the whole thing was for Benz only and then they still have to produce parts for Nissan and Mitsubishi

2. How did the merger between Daimler and Chrysler effect the Mercedes Benz vehicle and the brand? The effect of the merger between Daimler and Chrysler had a large negative impact on the Mercedes Benz car brand. Mercedes had been known and expected to be a car of luxury. Something that only dignitaries and wealthy people could afford. The perception that was given when someone owned a Mercedes-Benz was one of prestige; however once they merged with the America car maker Chrysler all that changed. Most Americans hated American cars. These were viewed as having little to know quality, owned by the low-middle working class families, and always having mechanical problems due to low cost materials and parts. When they merged; true Mercedes owners and loyal customers became concerned about the brand and untrusting of it. Their faith was shaken and so they started buying Benz’s competitor BMW. Not long after the merger the Benz began experiencing all sorts of mechanical issues which gave proof to the already assumed...