Case Study

DaimlerChrysler merger: The involvement of the boards

22 pages
December 1999
Reference: IMD-3-0771

This case can be used to analyze the level of involvement of the boards during the merger negotiations between Daimler-Benz AG and Chrysler Corporation. This transatlantic “merger of equals” provides an excellent opportunity for evaluating the corporate governance approaches across the Atlantic. It also gives participants a real life example for discussing the converging roles of boards. The case starts with a brief history of both Daimler-Benz AG and the Chrysler Corporation, then goes on to explain the intricacies of corporate governance in this merger. The German model of corporate governance (two-tier boards, co-determination) is compared to the American system (inside and outside directors). At the end, participants are confronted with a list of issues facing the combined board. The case provides the basis for a discussion on how to overcome some different approaches in corporate governance and how to manage mega-mergers (e.g. organization of the post-merger-integration phase, remuneration, closeness to shareholders).

Keywords
Corporate Governance, Board of Management, Board System, Automotive
Settings
Europe, United States of America
1995-1999
Type
Published Sources
Copyright
© 1999
Available Languages
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Looking for something specific?
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics