Your team is assigned the following company to research:

DaimlerChrysler

By: Aldo Escurra

  • Corporate Overview

DaimlerChrysler is a public company formed by the $37 billion acquisition of Chrysler by Germany's Daimler-Benz in 1998, the company makes about 4.6 million vehicles a year. Chrysler's brands include Dodge, Jeep, and, of course, Chrysler vehicles (the Plymouth line was discontinued); the Mercedes brand includes luxury sedans, commercial vehicles, and SUVs. DaimlerChrysler's Freightliner unit is the US's #1 heavy-truck maker. The carmaker also has about a 20% stake in Mitsubishi Motors, and a 33% stake in EADS, the European aerospace and defense consortium.

DaimlerChrysler at a Glance
Company Ownership / DaimlerChrysler is owned by European, U.S. and other international investors. Approximately one billion shares are circulating.
Global Stock / The DaimlerChrysler share is traded on all of the world's key stock exchanges, among them New York, Frankfurt and Tokyo.
Chairman / Prof. Jürgen E. Schrempp
Management Board / Consists of 10 members, including the Chairman and the heads of the operating and functional divisions.
Supervisory Board / Consists of 10 shareholders' representatives and 10 employees' representatives. The Supervisory Board appoints the Board of Management and approves important corporate decisions.
Market Capitalization / About US$48.32 billion (December 31, 2004)
Investments / In the planning period of 2005 through 2007, the Group aims to have total investment expenses of US$51 billion.
Automotive Sales / 4.006.700 million units Passenger Cars, 712.200 units Commercial Vehicles (in 2004)
Manufacturing
Facilities / Manufacturing Facilities:(USA)
14 assembly plants, 11 powertrain plants, 5 stamping operations, 2 component plants and 6 technical centers in North America; 6 manufacturing affiliations outside of North America
In 17 countries / Chrysler International manages the marketing, sales and service of Chrysler, Jeep® and Dodge vehicles in more than 125 countries or markets outside of North America. Manufacturing facilities are located in Austria (Chrysler, Jeep), China (Jeep), Egypt (Jeep) and Venezuela (Jeep, Dodge).. DaimlerChrysler Canada is the third-largest vehicle manufacturer in Canada, DaimlerChrysle mexico, Venezuela.
Brands / Maybach, Mercedes-Benz, Chrysler, Jeep®, Dodge, smart, Freightliner, Sterling, Western Star, Setra, Mitsubishi Fuso and others.
Strategic Partner / Mitsubishi Motors Corporation
Products Sold in / More than 200 countries
Official Language / English
  • Annual Income Statements:

*All amounts in US Dollars

Annual Values / Dec04 / Dec03 / Dec02
Revenue / 192,433.0 / 171,529.0 / 157,107.0
Cost of Goods Sold / 139,936.0 / 123,846.0 / 113,258.0
Gross Profit / 52,497.0 / 47,683.0 / 43,849.0
Gross Profit Margin / 27.3% / 27.8% / 27.9%
SG&A Expense / 32,009.0 / 29,347.0 / 25,589.0
Depreciation & Amortization / 15,256.0 / 14,353.0 / 14,308.0
Operating Income / 5,232.0 / 3,983.0 / 3,952.0
Operating Margin / 2.7% / 2.3% / 2.5%
Nonoperating Income / 1,680.0 / 456.0 / 4,243.0
Nonoperating Expenses / 2,123.0 / 1,145.0 / 1,092.0
Net Income After Taxes / 3,195.0 / (480.0) / 5,138.0
Total Operations / 3,340.0 / 600.0 / 5,122.0
Total Net Income / 3,340.0 / 562.0 / 4,955.0
Net Profit Margin / 1.7% / 0.3% / 3.2%

As the above table shows, the sales of DaimlerChrysler are increasing due to the shift in product mix to higher-priced vehicles and higher factory unit sales.

  • Divisions

DaimlerChrysler has five divisions:

  1. Mercedes Car Group. ( Maybach, Mercedes-Benz, Smart)
  2. Chrysler Group. (Dodge, Chrysler and Jeep)
  3. Commercial Vehicles. (Setra, Mercedes-Benz, Fuso)
  4. Services (DaimlerChrysler Bank: leasing and financial vehicles)
  5. Other activities (real-state activities, engines for trains and yachts)

Division (amounts in US millions of dollars) / 2004 Operating Profit / 2004 Revenues / 2004 Number of employees / 2004 Unit sales
Mercedes Car Group / 2,255 / 67,189 / 105,857 / 1,266,773
Chrysler Group / 1,932 / 67,010 / 84,375 / 2,779,895
Commercial Vehicles / 1,803 / 47,064 / 114,602 / 712,166
Services / 1,692 / 18,871 / 11,244
Other activities / 617 / 2,978 / 20,636
  • Top Competitors: BMW, Ford, General Motors.
  • News Topics:

1.DaimlerChrysler Supervisory Board decides on changes to company’s top management. Prof. Jürgen E. Schrempp, Chairman of the Board of Management of DaimlerChrysler AG, will leave the company after 44 years of service at the end of 2005. These years were distinguished by his leadership of major group interests in South Africa, the United States, and Ger-many as well as 17 consecutive years in chairmanship positions at both Daimler-Benz Aerospace (DASA) from 1988 to 1995, and Daim-ler-Benz AG, which later became DaimlerChrysler AG, from 1995 to the present day. Dr. Dieter Zetsche, head of the Chrysler group, will become Chairman of the Board of Management of DaimlerChrysler AG, effective January 1, 2006, for a period of five years. As successor to Dr. Zetsche, Tom LaSorda, the present Chief Operat-ing Officer (COO) of Chrysler Group, will lead that division from January 1, 2006. He has also been appointed a full member of DaimlerChrys-ler’s Board of Management with immediate effect. Eric Ridenour is promoted to the position of Chief Operating Officer (COO) of the Chrysler Group that will be vacated by Tom LaSorda, ef-fective January 1, 2006. His appointment, which also carries member-ship of the Board of Management, is for a period of three years.

2.Positive Sales Development at the Mercedes Car Group Continues in July.In July 2005, the Mercedes Car Group increased worldwide sales of Mercedes Benz and smart brand cars by 2.2 percent to 100,200 units (July 2004: 98,100). A total of 674,200 passenger cars were delivered to customers from January to July, compared to 682,900 during the same period last year. At Mercedes-Benz, the positive sales trend of the past several months continued in July, with worldwide deliveries of passenger cars increasing by 4.4 percent to 88,200 vehicles (July 2004: 84,500). In the coming months, additional sales growth is expected to be generated by the powerful new V6 and V8 engines, which will be gradually introduced in almost all Mercedes-Benz series.

3.New Mercedes-Benz S-Class is world's first car to get environmental certificate. Mercedes-Benz has gone green with its new Mercedes-Benz S-Class, receiving an Environmental Certificate from the TUV Management GmbH in Munich, the German government's automotive standards organization.

4.Will the NewarkDurango plant survive?. The News Journal Despite a slump in sales and a continued shift of consumer tastes away from truck-based sport utility vehicles, analysts have not given up on DaimlerChrysler AG's Dodge Durango plant in Newark - at least for the near future.

5.Chrysler names new manager in Newark Sungsoo Lee, a former DaimlerChrysler executive director who was on loan at Mitsubishi's NedCar plant in the Netherlands, took over as plant manager as the company prepares to launch new products. The NedCar plant makes Smart brand vehicles. Newark will be the first U.S. plant Lee has managed.

  • MSU MBA Alumni Networking.
  1. MBA 2005 Full time: Rebecca D’Alessandro.
  2. MBA 2005 Full time: Richard Densel.
  3. MBA 2005 Full time: Joy Nakfoor.
  4. MBA 2004 Full time: Manita Chawla.
  5. MBA Executive 2003: Anthony F. Blazevic.
  6. MBA 2003 Full time: Michael Braun.
  • Hiring Process.

The company uses the website to recruiter new candidates.A graduate student can choose between numerous management trainee programs at different locations. Each management trainee program offers graduate students individual and targeted development programs. In addition, Graduates with above-average grades may be eligible for various opportunities to guide their career. Aside from several trainee program opportunities in Europe, they may be eligible for programs in Sao Bernardo, Brazil, or North America. These programs provide the opportunity to learn about the department, get an overview of the department and the company as a whole, to gain practical work experience in your area of study, and to learn how to contribute to business objectives. Trainee programs usually last between one and two years.

On the other hand, DaimlerChrysler offers highly-qualified management trainees the opportunity to take part in a global program, the "International Management Associate Program" (IMAP) , and to take on management responsibility after completing the program. Over a period of 12-15 months, graduates will have the chance to work in different DaimlerChrysler business units where they can practice essential skills in their special field. The goal is to promote international management talent and develop leadership skills. The DaimlerChrysler International Management Associate Program (IMAP) gives them the opportunity to work on three or four projects and spend up to six months in a foreign country. Graduates will also have a chance to work in production and sales operations. The idea is to give them a comprehensive overview of the DaimlerChrysler value chain and prepare them for a challenging position with the company.
IMAP is aimed at strategic thinkers who have a keen interest in the automotive world. The program is open to university graduates with less than two years of professional experience, and at least one year as a student or intern in a foreign country.

Moreover, graduates can apply for a Direct Assignment which provide challenging tasks within a team from the outset and can put the graduate student’s know-how straight to practical use. The prerequisite for a direct assignment is a university degree and related work experience. Individual introductory programs and specialist training courses may also be offered. A direct assignment is, in principle, possible in all business units of the Group and in all fields – ranging from mechanical engineering to telecommunications engineering and business. Just choose your preferred country from the navigation bar on the left to get more specific information.

DaimlerChrysler IMAP will both develop your career and challenge you as a person. In making our selection, we therefore attach great importance to getting to know you, your strengths and areas of expertise as well as possible weaknesses and to giving you the opportunity to get to know us, DaimlerChrysler and its corporate culture. Following this, both parties can make an informed decision on future steps.
DaimlerChrysler has therefore developed a multi-stage selection process:
1. Online application. (

2. Interview
3. AssessmentCenter
4. Recruitment.

DaimlerChrysler is looking for highly motivated Achievers who have a genuine affinity for mobility and have the know-how to innovative solutions. DaimlerChrysler’s goal is to promote international management talent and develop leadership skills.