Wikipedia: Daimler AG
The following section is an excerpt from Wikipedia's Daimler AG page on 14 February 2019, text available via the Creative Commons Attribution-ShareAlike 3.0 Unported License.
In a so-called "Merger of Equals," or "Marriage made in Heaven", according to its then CEO and architect Jürgen E. Schrempp, Daimler-Benz AG and United States-based automobile manufacturer Chrysler Corporation, the smallest of the main three American automakers, merged in 1998 in an exchange of shares and formed DaimlerChrysler AG. Valued at US$38billion, it was the world's largest ever cross-border deal.
The terms of the merger allowed Daimler-Benz's non-automotive businesses such as Daimler-Benz InterServices AG, "debis AG" for short, (created in 1989 to handle data processing, financial and insurance services, and real estate management for the Daimler group) to continue to pursue their respective strategies of expansion. debis AG reported revenues of $8.6 bn (DM 15.5 bn) in 1997.
The merger was contentious with investors launching lawsuits over whether the transaction was the 'merger of equals' that senior management claimed or actually amounted to a Daimler-Benz takeover of Chrysler. A class action investor lawsuit was settled in August 2003 for US$300 million while a suit by billionaire investor activist Kirk Kerkorian was dismissed on 7 April 2005. The transaction claimed the job of its architect, Chairman Jürgen E. Schrempp, who resigned at the end of 2005 in response to the fall of the company's share price following the transaction. The merger was also the subject of a book Taken for a Ride: How Daimler-Benz Drove Off With Chrysler, (2000) by Bill Vlasic and Bradley A. Stertz.
Another issue of contention is whether the merger delivered promised synergies and successfully integrated the two businesses. Martin H. Wiggers' concept of a platform strategy like the VW Group, was implemented only for a few models, so the synergy effects in development and production were too low. As late as 2002, DaimlerChrysler appeared to run two independent product lines. Later that year, the company launched products that appeared to integrate elements from both sides of the company, including the Chrysler Crossfire, which was based on the Mercedes SLK platform and utilized Mercedes's 3.2L V6, and the Dodge Sprinter/Freightliner Sprinter, a re-badged Mercedes-Benz Sprinter van.
In 2000, DaimlerChrysler acquired the Detroit Diesel Corporation and placed its on-highway division under Daimler Trucks North America. The off-highway division was placed under MTU Friedrichshafen to form'MTU America. Detroit Diesel branding has been maintained by DTNA and MTU America. In 2005, MTU-Friedrichshafen was sold to the Swedish investment firm EQT Partners.
Daimler agreed to sell the Chrysler unit to Cerberus Capital Management in May 2007 for US$6 billion. Through most of its history, Chrysler has been the smallest of the "Big 3" U.S. automakers, but in January 2007, DaimlerChrysler, excluding its luxury Mercedes and Maybach lines, also outsold traditionally second place Ford, though behind General Motors and Toyota.
Chrysler reported losses of US$1.5 billion in 2006. It then announced plans to lay off 13,000 employees in mid-February 2007, close a major assembly plant and reduce production at other plants in order to restore profitability by 2008.
DaimlerChrysler had reportedly approached other carmakers and investment groups to sell Chrysler in early 2007. General Motors was reported to be a suitor, but on 3 August 2007, DaimlerChrysler completed the sale of Chrysler Group to Cerberus Capital Management. The original agreement stated that Cerberus would take an 80.1 percent stake in the new company, Chrysler Holding LLC. DaimlerChrysler changed its name to Daimler AG and retained the remaining 19.9% stake in the separated Chrysler.
The terms saw Daimler pay Cerberus US$650 million to take Chrysler and associated liabilities off its hands. Of the US$7.4 billion purchase price, Cerberus Capital Management was to invest US$5 billion in Chrysler Holdings and US$1.05 billion in Chrysler's financial unit. The de-merged Daimler AG received US$1.35 billion directly from Cerberus but directly invested US$2 billion in Chrysler itself. Chrysler filed bankruptcy in 2009.
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|1999 Book||Electrical Diagnosis 2 Student Workbook; DaimlerChrysler Corporation|
|Date||Document Name & Details||Documents|
|30 April 1998||SECRETARY SLATER ANNOUNCES PARTNERSHIP TO COMBAT RED LIGHT RUNNING NATIONWIDE||Federal Highway Administration|
|4 September 1998||Two of Three See Other Drivers Run Red Lights Every Day, Says Survey As National Stop on Red Week Begins||Federal Highway Administration|
|20 April 1999||U.S. Transportation Secretary Slater Applauds Daimler Chrysler for Funding Alabama Crash Research Center||NHTSA|
|31 May 2001||NHTSA Releases Chrysler and Dodge Minivan Crash Test Ratings||NHTSA|
|28 July 2001||DaimlerChrysler: Hoping New SUV Sales Will Soar||John Birchard, VOA News|
|19 December 2001||Building soon for DaimlerChrysler - Multi-Million ' Contract for AVL||AVL List Gmbh|
|17 May 2002||DaimlerChrysler's Parts Suggested Stock Order Application Deployed by Reynolds and Reynolds||Reynolds and Reynolds|
|28 November 2002||TI AUTOMOTIVE TO SUPPLY COMPONENTS TO CHRYSLER GROUP||TI Automotive|
|19 May 2003||The National Vehicle and Fuel Emissions Laboratory Event with DaimlerChrysler and UPS, Ann Arbor, Michigan||Christine Todd Whitman|
|5 September 2003||DaimlerChrysler Named One of America's Safest Companies||Margot B & Associates|
|17 November 2003||CALLCOMMAND APPROVED BY CHRYSLER GROUP AS PREFERRED MARKETCENTER SUPPLIER||CallCommand|
|9 February 2004||GKN Earns 2003 Global Supplier Award from DaimlerChrysler||GKN Driveline Americas|
|23 April 2004||DaimlerChrysler Withdraws Financial Support from Mitsubishi Motors||Steve Herman|
|17 May 2004||Mitsubishi Motors Struggles Could Affect Several Companies||>John Birchard|
|6 December 2004||Schröder legt Grundstein für Autofabrik in China||Wikinews|
|11 December 2004||Staatsanwaltschaft ermittelt beim Automobilkonzern DaimlerChrysler||Wikinews|
|21 March 2005||Leipziger Mercedes-Chef muss gehen||Wikinews|
|6 April 2005||DaimlerChrysler podría cerrar fábrica en Brasil||Wikinoticias|
|28 July 2005||Daimler-Vorstandsvorsitzender Schrempp verlässt den Konzern||Wikinews|
|29 July 2005||Schrempp geht ohne Abfindung||Wikinews|
|24 January 2006||DaimlerChrysler Slashes 6000 Jobs||VOA News|
|26 January 2006||DaimlerChrysler verkleinert Vorstand und Verwaltung||Wikinews|
|5 July 2006||Daimler-Chrysler Seeks Big Profits with Small Smart Car||George Dwyer|
|28 September 2006||DaimlerChrysler to Sell Low-Cost Chinese-Made Cars in the US||Mil Arcega|
|26 January 2007||Daimler Chrysler Board Chairman Sees Diesel Alternative||John Birchard, VOA News|
|31 January 2007||Chrysler's Shake-up Leads To Waning Worker's Confidence||Anthony Fontanelle|
|7 February 2007||DaimlerChrysler's Commitment to Alternative Fuels Outlined||Anthony Fontanelle|
|10 February 2007||DaimlerChrysler gibt Teil des eigenen EADS-Anteils ab||Wikinews|
|13 February 2007||Chrysler Workers Fear The Worst Is Yet To Come||Anthony Fontanelle|
|13 February 2007||Chrysler, Off To Unfold The Biggest Gamble Ever||Anthony Fontanelle|
|14 February 2007||DaimlerChrysler plans to cut 13,000 jobs||Wikinews|
|15 February 2007||Magna Lends a Hand to Provide Ingenious Seating for Chrysler Minivans||Anthony Fontanelle|
|16 February 2007||Chrysler Exec's Change of Tune Rattles Nerves||Anthony Fontanelle|
|16 February 2007||Chrysler's ‘Valentine Bomb' Explodes At Auburn Hills||Anthony Fontanelle|
|16 February 2007||Could 13 New Models Lift Chrysler's Mess?||Anthony Fontanelle|
|16 February 2007||Daimler: Fix Chrysler Or Else...||Anthony Fontanelle|
|16 February 2007||Is DaimlerChrysler Facing Divorce?||Anthony Fontanelle|
|16 February 2007||Kapitalanleger verloren Sammelklage gegen DaimlerChrysler-Konzern||Wikinews|
|20 February 2007||DaimlerChrysler Aids Tornado Victims||Anthony Fontanelle|
|6 March 2007||Chrysler Reports Increased Sale Outside North America||Anthony Fontanelle|
|21 March 2007||Chrysler Group Dealers Need Company Update||Anthony Fontanelle|
|23 March 2007||Chrysler Group to Unveil Concept Vehicles at New York Auto Show||Anthony Fontanelle|
|29 March 2007||Daimler Expands Plug-in Hybrid Program||Anthony Fontanelle|
|30 March 2007||Chrysler Vehicles to be Equipped with Backseat TV™||Anthony Fontanelle|
|4 April 2007||DaimlerChrysler: Zetsche bestätigte Verkaufsgespräche wegen der US-Tochter Chrysler||Wikinews|
|4 April 2007||DaimlerChrysler Chief Says Chrysler is For Sale||VOA News|
|10 April 2007||Where Is DaimlerChrysler Heading?||Anthony Fontanelle|
|14 May 2007||Daimler trennt sich von Chrysler||Wikinews|
|14 May 2007||DaimlerChrysler to sell Chrysler Group for $7.4 Billion||Wikinews|
|4 August 2007||DaimlerChrysler: US-Tochter Chrysler für 7,4 Milliarden US-Dollar verkauft||Wikinews|
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