Daimler Essay

425 Words2 Pages
DaimlerChrysler (DCX) was formed in 1998 in a merger of two of the automotive industry’s oldest and most prestigious manufacturers: Daimler-Benz AG and the Chrysler Corporation. This so-called “merger of equals” was the culmination of a long complicated family history that in some sense follows the history of the automobile itself. Because of this prestigious history, DaimlerChrysler enjoys a strong reputation on both sides of the Atlantic. Today, DaimlerChrysler employs a total of 384,723 people in 17 countries. Their products are sold in over 200 countries. DaimlerChrysler is the fourth largest vehicle producer in the world in terms of units sold behind GM, Ford, and Toyota. In 2004, DaimlerChrysler sold 4,000,700 passenger vehicles and 712,200 commercial vehicles. The company is structured into three main automotive groups: the Mercedes Car Group, the Chrysler Group, and the Commercial Vehicles Division. These groups are parents to a total of 12 different brands, including Mercedes-Benz, Dodge, Chrysler, Jeep, the luxury carMaybach, and the compact environmentally friendly smart car. In all, DaimlerChrysler produces approximately 126 vehicle models. DaimlerChrysler has been marginally successful in the United States where the Chrysler Group has recently been the strongest of Detroit’s Big 3. In fact, during the third-quarter of 2005, Chrysler was the only Big 3 company to earn a profit ($379 million for the quarter). This came in spite of a 21% drop in third-quarter earnings by DaimlerChrysler worldwide due to increasing taxes. However, during this same period, DaimlerChrysler increased operating profit by 38%. Analysts have attributed this odd result to increasing demand for Chrysler and Mercedes products. This increased demand is evidenced in the U.S. market where the Chrysler Group produces four of the 20 top selling passenger vehicle models:
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