Mercedes-Benz’s Chrysler Deal
In 1998, Mercedes Benz’s parent company, Daimler Benz, merged with Chrysler and became Daimler Chrysler. The merging was intended to create a new powerhouse in the international automobile industry. They even set up a branch in the United States and another one in Europe to dominate the industry in two continents.
But it cost Daimler Benz $37 billion to acquire Chrysler and the two companies had a tough time working well together. Not only was quality in building materials an issue, but both sides experienced a series of culture clashes that made the merger unproductive. So, in 2007, Daimler Benz sold Chrysler for $7 billion to Cerberus Capital Management Firm.