Daimler Ag and Saab
Chrysler was founded in 1925 and it has had a joyous history. Being the third-largest of Detroit’s auto companies it was especially known for its development in well-engineered cars the years after World War II. As of the last three decades it has been experiencing both highs and lows. The unlikely union of Chrysler and Fiat to me seemed to be a bigger mistake than that of the Chrysler and Benz merger (" daimler, chrysler," 2008). Fiat took control of Chrysler after it emerged from its government-sponsored bankruptcy in 2009 (VLASIC, 2012).
In 1938, the Saab factory was built in Trollhattan Sweden. At this time, they were not an automobile manufacturer. On the brink of the biggest war the world had seen (World War II), the Royal Swedish Air Force needed to develop an aircraft. It wasn’t until 1947 that the first car was developed (the Saab 92). Soon after the development of the Saab 92 it quickly became a reputable name for building safe and reliable cars (Saab Group, 2010). I was unaware of this merger but as CNN states “Automotive traditionalists are understandably upset that a brand with a long and storied history like Saab has wound up on the financial chopping block.” In 1990 GM bought 50 percent of Saab it is believed that most of the blame for Saab 's failure is GM’s fault (Taylor III, 2011).
Both Saab and Chrysler were in a position where they both needed to be rescued. The facts are that the Saab and GM merger were all at a loss before the merger began. As I have read the financial crisis that our economy has just passed placed both companies in compromising positions. The truth about cars states that “…Saab was going through its traumatic divorce from GM and troubled rescue attempt.” So at this point GM saw an opportunity to establish itself in a new region and expand Saab. So In 2000, GM bought out the present Investor of Saab. In no time, Saab had already begun to see a succession of short-term, GM-appointed chiefs (Dave Herman, and later, Bob
In 1938, the Saab factory was built in Trollhattan Sweden. At this time, they were not an automobile manufacturer. On the brink of the biggest war the world had seen (World War II), the Royal Swedish Air Force needed to develop an aircraft. It wasn’t until 1947 that the first car was developed (the Saab 92). Soon after the development of the Saab 92 it quickly became a reputable name for building safe and reliable cars (Saab Group, 2010). I was unaware of this merger but as CNN states “Automotive traditionalists are understandably upset that a brand with a long and storied history like Saab has wound up on the financial chopping block.” In 1990 GM bought 50 percent of Saab it is believed that most of the blame for Saab 's failure is GM’s fault (Taylor III, 2011).
Both Saab and Chrysler were in a position where they both needed to be rescued. The facts are that the Saab and GM merger were all at a loss before the merger began. As I have read the financial crisis that our economy has just passed placed both companies in compromising positions. The truth about cars states that “…Saab was going through its traumatic divorce from GM and troubled rescue attempt.” So at this point GM saw an opportunity to establish itself in a new region and expand Saab. So In 2000, GM bought out the present Investor of Saab. In no time, Saab had already begun to see a succession of short-term, GM-appointed chiefs (Dave Herman, and later, Bob
References: 1. Taylor III, A. (2011). Saab without tears. CNN. Retrieved from http://money.cnn.com/2011/12/20/autos/saab_general_motors.fortune/index.htm 2 3. VLASIC, B. (2012, January 09). A merger once scoffed at bears fruit in detroit. Retrieved from http://www.nytimes.com/2012/01/10/business/chrysler-and-fiat-merger-shows-fruits-of-teamwork.html?_r=0 4 5. Saab Group. (2010). A history of high technology. Retrieved from http://www.saabgroup.com/About-Saab/Saab-History/ 6 7. AUTO OBSERVER STAFF. (14, September 2011). If saab finally done, end began 20 years ago . Retrieved from http://www.autoobserver.com/2011/09/if-saab-finally-done-end-began-20-years-ago.html 8 11. Woods, L. (2011). Streetdirectory. Retrieved from http://www.streetdirectory.com/travel_guide/53007/car_focus/how_daimler_chrysler_merger_failed.html 12 19. Holweg, M. (2011, December 12). Why saab had to die. Retrieved from http://www.forbes.com/sites/frederickallen/2011/12/20/why-saab-had-to-die/ 20 21. Baltimore Business Journal. (2009, November 2). Black & decker ceo nolan archibald 's letter to employees. Retrieved from http://www.bizjournals.com/baltimore/stories/2009/11/02/daily14.html?page=all 22