The 2005 Chrysler 300 was as good as it got for DaimlerChrysler.
The 1998 merger of Daimler-Benz and Chrysler Corporation was the brainchild of Jürgen Schrempp, Daimler’s ambitious CEO. Schrempp was on a mission to drive up the profitability and shareholder value of the group, following the disastrous early-1990s acquisitions spree of his predecessor, Edzard Reuter. Reuter had tried to turn Daimler into a broad-based global technology conglomerate, but instead oversaw a collapse in profits and share price that precipitated his sacking in 1995.
Schrempp believed that there was enormous untapped potential in Daimler’s automotive division, Mercedes-Benz. He wanted to leverage this to achieve a step-change in sales and market share for the traditionally conservative and upmarket automaker. This could (and indeed would) be achieved organically by extending the company’s traditional range downwards into mainstream territory, but this would take time and Schrempp was a man in a hurry, driven at least as much by quarterly financial reports as long-term strategy. Continue reading “A Diamond in the Dust”