When the two large and successful auto manufacturers, Daimler-Benz A.G. and Chrysler Corporation, merged in 1998, the new global company was expected to be a powerhouse in the industry. The merged company would have a full line of vehicles, access to Mercedes' engine technology and Chrysler's marketing expertise. Yet nine years later, in 2007, Cerberus Capital Management, a private equity firm, purchased an 80.1% stake in Chrysler for $7.4 billion and took the Chrysler Group private. Why didn't the merger succeed? Was there anything that could have been done differently so that this merger would have been a success?
Spring 2008
