In 1998, the German automaker Daimler-Benz and the U. S. automaker Chrysler formed what they called a 'merger of equals.' However, Daimler's culture was very formal and emphasized quality, while the American company had an informal 'cowboy' culture that emphasized cost control. A few years later, the merger was declared a failure. What lessons can we learn from this?

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Cory Cameron

12 March, 12:31

In 1998, the German automaker Daimler-Benz and the U. S. automaker Chrysler formed what they called a 'merger of equals.' However, Daimler's culture was very formal and emphasized quality, while the American company had an informal 'cowboy' culture that emphasized cost control. A few years later, the merger was declared a failure. What lessons can we learn from this?

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Culture differences do matter

Explanation:

In general Germans and German companies are known for being formal, following the rules as strict as possible and regarding the quality of a product as the supreme issue that must not be taken lightly.

The Americans however are less formal, more (market) flexible and show a clear business attitude that focuses more on quantity in production.

Not to mention the social gap when it comes to the working conditions between the two cultures ...