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Crisler Corporation. Senior thesis

Crisler Corporation. Senior thesis
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Crisler Corporation. Senior thesis


1. History of Chrysler Corporation

2. History of Daimler-Benz Corporation

3. Short Summery of Current Position of DaimlerChrysler

4. Reasons for Merger and New Opportunities

5. Opportunities in New Markets

6. Decrease in Price of Materials Bought from Suppliers

7. Decrease in R&D Expenses per Production Unit

8. Confluence of Technologies of Both Corporations

9. Double Strength of the New Corporation

10. Market Concerns

11. New Corporation

12. Achievements of the New Corporation

13. Survey of Recent Stock Performance

14. Comments on some of Financial Ratios of the New Corporation

15. Government Concerned that…

16. Environmental Issues in the New Corporation

17. Conclusion

History of Chrysler Corporation

It would be true to say that Chrysler Corporation was born long ago before the year 1925 (when it was officially established). It was started as a result of Walter P. Chrysler’s efforts to create a car that would be affordable and competitive in the market. The first car would incorporate four-wheel hydraulic brakes and a high-compression six-cylinder engine.

In 1924, New York for the first time saw a car that became the ancestor of all generations of Chrysler’s cars. It was the Chrysler Six.

The car was not allowed to be presented at the New York Automobile Show, because it was not in production. But to put it in production Walter

Chrysler needed to raise external funds. Eventually he came up with a very inventive idea—to park his car in front of the building in which the show took place. Going to the show, exhibitors and investors had a chance to see the Chrysler Six. Chrysler’s efforts led to success—a Chase Security

Banker underwrote a five million dollars issue of Maxwell Motor Corporation

(the company of which Walter Chrysler was a chairman) debenture bonds to finance future development.

In a year Walter Chrysler purchased Maxwell Motor Corporation, renamed it to Chrysler Corporation and became the only owner of it. The new company was growing very fast. By the end of the year Chrysler Corporation had

3800 dealers in the United Stated alone. The profit that year was about

$17 million.

In 1934, the company introduced Airflow to the market. This car was a result of engineer Carl Breer’s and Orville Wright’s work. They had been working on a new generation of cars with a teardrop front. Unfortunately this car did not match customers’ tastes. However the company recovered thanks to innovations like ball bearings treated with Superfinish, a forerunner of the automatic transmission (fluid Drive), and the color-coded

“Safety-Signal” speedometer. The company continued this success in 941, when it introduced the luxury-oriented Town & Country wagon. This was the company’s first minivan with nine-passenger seating and a rear hatch.

Besides that, it was the first minivan with genuine wood exterior panels.

This model was in big demand.

On August 18, 1940, the company was shaken by grief: Chrysler

Corporation’s founder, Walter P. Chrysler, passed away.

In 1955, Chrysler Corporation debuted its “master piece”—Chrysler C-

300. This car was the most powerful full-size car in the world, and soon won twenty out of forty races conducted in 1955.

Chrysler Corporation played a big role in production for military service during World War II. The company’s full capacity was directed toward production of tanks and 40mm trailer-mounted anti aircraft guns. In total, Chrysler participated in sixty-six military projects that were worth of more than 3.4 billion dollars between 1940 and 1945.

With the beginning of the era of space conquest, the Chrysler

Corporation actively participated in the construction of powerful engines used to launch astronauts into orbit. NASA chose Chrysler to construct the

Saturn 1 and Saturn 1B launch vehicles, which were assembled at its plant in Louisiana.

In May of 1998, an event took place that led to huge changes in the auto world. Two of the world’s most profitable car manufacturers, Daimler-

Benz and Chrysler Corporation, agreed to combine their businesses in an equal merger.

History of Daimler-Benz

On October 1, 1883, Karl Benz started his own company, which was called Benz & Cie, Rheinishe Gas Motor Enfabrik. Benz’s cars increased in popularity after he started to build multiple cylinder engines with 16 horsepower, which increased the speed. The sale of automobiles was increasing every year. In the single year of 1901, Benz & Cie sold 2,702 vehicles. By that time, Benz was selling his vehicles in France, England,

Russia, United States, and Singapore. Two years later at the age of 60,

Karl decided to retire from the car business and the company was taken over by his sons, Eugen and Richand. On April 4, 1929, at the age of 84, Karl

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