Addressing the Challenges of Groups and Teams

Addressing the Challenges of Groups and Teams

Julia Jenkins

LDR531

February 8, 2010

Leo Shelton

Addressing the Challenges of Groups and Teams

When Chrysler declared bankruptcy on April 30, 2009, it became the first major American automaker to seek bankruptcy protection since Studebaker did so in 1933 (Rutenberg, & Vlasic, 2009, p. A1). After a near bankruptcy in 1979, in which Chrysler needed government assistance to pay off 1.2 billion in debts (Brian, 2008, p.1), Chrysler had a tumultuous three decades, culminating in the bankruptcy filing. In 1998, in what was then called “a marriage made in heaven” by then CEO Jürgen Schrepp, Mercedes-Benz and Chrysler merged. The heavenly marriage never materialized, and nine years later, the two parted ways. This failure can be attributed to poor communication, no collaboration, and conflicting ways of thinking and conducting business. Basically, Daimler-Chrysler never functioned as a group or a team; rather, they remained separate, thus dooming the merger.

A major stumbling block for the Daimler-Chrysler merger was a lack of communication. Regarding the merger, “Americans didn't like it. Germans didn't like it. Auto buyers weren't crying for it” (Markowitz, 2003). Yet, for no other reason than “management ambition,” (Markowitz, 2003), the companies were merged. Markowitz further states, in his article, Daimler, Chrysler merger a failure, (The Pittsburg Tribune Review, 2003), “In Stuttgart (DaimlerChrysler's headquarters city), the fear and loathing of Chrysler is palpable. Many Germans feel the American partner is just a sinkhole for billions”. In addition to the dislike between the German and American employees was the different in culture. As Emma Wynne reveals in DaimlerChrysler: "A Failed Experiment" (2007):

“The philosophy and the management styles of the Swabians and the Americans are rather different. The Mercedes-Benz people are very proud and don't communicate much with the Americans and...