The DaimlerChrysler Mitsubishi merger: a study in failure

Jason Begley, Tom Donnelly

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    3 Citations (Scopus)
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    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.
    Original languageEnglish
    Pages (from-to)36-48
    JournalInternational Journal of Automotive Technology and Management
    Volume11
    Issue number1
    DOIs
    Publication statusPublished - 2011

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    Keywords

    • globalisation mergers
    • consolidation
    • international markets
    • Jurgen Schrempp
    • demerger
    • market exit
    • merger failure
    • DaimlerChrysler
    • Mitsubishi
    • Asian market
    • automotive mergers
    • automobile industry
    • transnational production

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