DaimlerChrysler

DaimlerChrysler AG--the third-largest car maker in the world--is the product of the November 1998 merger of Daimler-Benz AG of Germany and Chrysler Corporation of the United States. Vehicles built by the resultant powerhouse include Mercedes-Benz luxury passenger cars; a… We aim to convince our customers with our exciting automobiles, attractive and economical commercial vehicles, and tailored financial services. With our innovative technology, we intend to make the traffic of tomorrow even safer, as well as more economical and environmentally friendly. And by implanting this strategy, we intend to create lasting value for our shareholders. To these ends we focus our global resources and the knowledge, experience, and energy of our employees.Company Perspectives DaimlerChrysler AG--the third-largest car maker in the world--is the product of the November 1998 merger of Daimler-Benz AG of Germany and Chrysler Corporation of the United States. Vehicles built by the resultant powerhouse include Mercedes-Benz luxury passenger cars; a microcompact car sold under the name Smart; Chrysler, Jeep, and Dodge cars, pickup trucks, minivans, and sport utility vehicles; and commercial vehicles, including vans, trucks, and buses, under the brand names Mercedes-Benz, Freightliner, Sterling, Setra, and Western Star Trucks. The company's revenue stream is heavily weighted toward the United States and Europe--the Mercedes Car Group and the Chrysler Group divisions account for the majority of company sales. The company has been plagued with problems in recent years related partly to its investment in Mitsubishi Motors. Its troubled Chrysler division experienced a $637 million loss in 2003 due to restructuring costs and slowing U.S. sales. In addition to its vehicle manufacturing operations, DaimlerChrysler is a leading provider of information technology services in Germany and offers a variety of financial services--including vehicle sales and leasing financing, dealer financing, and insurance services--primarily in North America and Europe. The European Aeronautic Defence and Space Company (EADS), which is 33 percent-owned by DaimlerChrysler, operates as the world's second-largest aerospace and defense company. The roots of Daimler-Benz go back to the mid-1880s and two engineers, Carl Benz and Gottlieb Daimler, who are cited by most authorities as the most important contributors to the development of the internal combustion engine. Despite the fact that they were both concerned with the same idea at virtually the same time, and they lived within 60 miles of each other, the two apparently never even met. They certainly never envisioned the 1926 merger of their two companies. Although Benz drove his first car in 1885 and Daimler ran his in 1886, neither was actually the first to create gasoline-powered vehicles. They were, however, the first to persist long enough to make them viable as transportation. At this time the obstacles to motorized vehicles were enormous: gasoline was considered dangerously explosive, roads were poor, and few people could afford an automobile in any case. Nevertheless, Benz dedicated himself to revolutionizing the world's transportation with the internal combustion engine. Early in 1885 Benz--who had formed Benz & Companies in Mannheim in 1883--sat in a car and circled a track next to his small factory, while his workers and his wife stood nearby. The car had three wheels and a top speed of ten mph. This engineering triumph was only slightly marred by Benz's first public demonstration, which took place shortly afterward, in which he forgot to steer the car and smashed into the brick wall around his own home. Despite this inauspicious debut, Benz's cars quickly became known for their quality of materials and construction. By 1888 Benz had 50 employees building his three-wheeled car. Two years later, he began making a four-wheeled vehicle. The story of how Daimler found a new brand name for its cars has become legenda