Abstract
This article focuses on the DaimlerChrysler/Mitsubishi merger of
2000 and discusses the failed attempt by a European-American multinational
firm to break into the Asian market, a region where previously it had
an extremely limited presence. Having completed its 1998 merger with the
US-based Chrysler Corporation, the newly formed DaimlerChrysler group
turned its attention to the Asian market in 2000 in an attempt to become a truly
global competitor. Partnership with the Japanese motor firm offered the
possibility of economies of scale and scope, in particular in the sub-compact
car market to enable DaimlerChrysler to become a full-scale producer.
However, within four years the dream of large scale trans-national production
was over. The failure to integrate with the Japanese company and the
subsequent decision to cut Mitsubishi Motors adrift led to the dismissal of the
DaimlerChrysler CEO Jürgen Schrempp. This paper will focus on outlining the
motives behind the merger, why it failed, and why the Board of Daimler-Benz
decided to end the relationship and extricate itself from Mitsubishi’s problems.
2000 and discusses the failed attempt by a European-American multinational
firm to break into the Asian market, a region where previously it had
an extremely limited presence. Having completed its 1998 merger with the
US-based Chrysler Corporation, the newly formed DaimlerChrysler group
turned its attention to the Asian market in 2000 in an attempt to become a truly
global competitor. Partnership with the Japanese motor firm offered the
possibility of economies of scale and scope, in particular in the sub-compact
car market to enable DaimlerChrysler to become a full-scale producer.
However, within four years the dream of large scale trans-national production
was over. The failure to integrate with the Japanese company and the
subsequent decision to cut Mitsubishi Motors adrift led to the dismissal of the
DaimlerChrysler CEO Jürgen Schrempp. This paper will focus on outlining the
motives behind the merger, why it failed, and why the Board of Daimler-Benz
decided to end the relationship and extricate itself from Mitsubishi’s problems.
| Original language | English |
|---|---|
| Pages (from-to) | 36-48 |
| Journal | International Journal of Automotive Technology and Management |
| Volume | 11 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2011 |
Keywords
- globalisation mergers
- consolidation
- international markets
- Jurgen Schrempp
- demerger
- market exit
- merger failure
- DaimlerChrysler
- Mitsubishi
- Asian market
- automotive mergers
- automobile industry
- transnational production