SlideShare a Scribd company logo
Uniqueness: An Absolute Essential
Presented by:
M.Taimur
Harram
OUTLINE:
• Background of CHRYSLER
• The Merger
• New Leadership
• A Distinctive New Car
• The Hemi Engine
• Conclusion
Background of CHRYSLER
• Chrysler is an American automobile manufacturer
headquartered in Auburn Hills, Michigan.
• The Chrysler Corporation was founded by Walter Chrysler
in 1925.
CHRYSLER: Causes of Success
• In 1996,chrysler was clearly at the top of its game.
• It invented the minivans and grand Cherokee which were
an instant success.
Contd..
• Both were successful because each was so distinctive,
unusual and unique automobiles at that time.
Successful Products of Chrysler
• During that period,Chryler was riding on success of
stylish products. They were unique looking family
sedans.
1) Dodge Intrepid
2) Chrysler Concorde
3) Eagle Vision
Chrysler: The Merger
• In 1998 Chrysler merged with Daimler-Benz to
form Daimler Chrysler AG.
Contd..
Chrysler Daimler-Benz
Moderate priced cars & light
trucks
Mercedes luxury cars & heavy
trucks
Strong in North America & Weak
in western Europe
Strong in western Europe & weak
in north America
Good at design & product
development
Good at engineering and
technology
Chrysler: Crisis
• After the merger, next three years (1999 onward) was
very tough for Chrysler.
• Demand for Chrysler’s high margin minivans & SUV’s was
cooling off, because the competition was catching up &
Chrysler was standing still. Losing its momentum in
developing distinctive cars.
Chrysler: Causes of crisis
• According to former Chrysler executives, The
main cause of crisis was that “We hired too
many people, at the same time, The company
was making financial forecast that really had
no basis in fact”
• Passing up the opportunities for economies of
scale by allowing each of the different car units
to line up its own component supplier.
Chrysler: New Leadership
• Dieter Zetsche took over as CEO of
Chrysler in 2000.
• He found lots of complicated financial
projections but no thorough analysis of
company’s strength and weaknesses.
Contd..
• Actions taken by dieter Zetsche.
1. Cutting 26,000 jobs.
2. Reducing the cost of parts by 15%.
3. Closed six assembly plants.
Consequences
• During 2003, market share declined to 13%
• Company lost its 53 year position as
America’s number three car maker
• Operating losses of $685 billion
• Now what to do!!!!!!1
New Chrysler 300 sedan
• Won enormous number of awards
• “Motor Trend’s Car of the Year”
• “It makes the majority of vehicles on the road look
like blobs” noted in Business Week
Why so Exciting????
• Incorporation of Benz five speed automatic
transmission
• High-end 300C model
• 340-horsepower
• 5.7-litre Hemi V8 engine
Hemi Engine
• Added $10,000 to price of Chrysler
300
• Surprisingly………
• Efficient during Highway driving
• Cylinder Deactivation(25
miles/gallon)
• Dieter Zetsche acknowledge “One of
the building block of the turnaround
of this company”
Success with 2004
• Dodge Magnum sports wagon
• Dodge caravan
• Chrysler Town minivans
• Operating profit of $1.9 billion as compared
with loss of $685 million for 2003
• GM and Ford got serious trouble
• S & P rated them as JUNK
• Many of their suppliers got
bankrupt
Results
• Dieter Zetsche became CEO of Daimler-Chrysler
• Unfortunately, Chrysler did not adjust production
accordingly with no unique new models
• Fall in 2006
• Again experienced $1.5 billion quarterly loss
Conclusion
• Chrysler has been on roller coaster for last 20
years
• Whenever they got success,
Get sloppy with its production
Hires too many people
Shut down the innovation
Thank You!!!!

More Related Content

What's hot

Gm Presentation3
Gm  Presentation3Gm  Presentation3
Gm Presentation3
hasil zaheer
 
Ford motor company
Ford motor companyFord motor company
Ford motor company
Đăng Khoa Cao
 
General motors
General motorsGeneral motors
General motors
Haroon Adil
 
General Motors
General  MotorsGeneral  Motors
General Motors
shaggy911
 
General motor strategic management report
General motor strategic management report General motor strategic management report
General motor strategic management report
Mudasra Amjad
 
General Motors 2005: Crisis and Way Out
General Motors 2005: Crisis and Way OutGeneral Motors 2005: Crisis and Way Out
General Motors 2005: Crisis and Way Out
Piyorot Piyachan
 
General Motor Strategic Management Analysis
General Motor Strategic Management AnalysisGeneral Motor Strategic Management Analysis
General Motor Strategic Management Analysis
Rashid Javed
 
Darden School of Business Tesla Strategic Analysis
Darden School of Business   Tesla Strategic AnalysisDarden School of Business   Tesla Strategic Analysis
Darden School of Business Tesla Strategic Analysis
José Ángel Álvarez Fuente
 
Presentation on ford motor company (pom)
Presentation on ford motor company (pom)Presentation on ford motor company (pom)
Presentation on ford motor company (pom)
Harsh_BITS
 
Daimler-Chrysler case study
Daimler-Chrysler case study Daimler-Chrysler case study
Daimler-Chrysler case study
Daniyar Meiremgaliyev
 
Honda
HondaHonda
Honda
erikabacon
 
General Motors_Strategic Management
General Motors_Strategic ManagementGeneral Motors_Strategic Management
General Motors_Strategic Management
Soumyajit Sengupta
 
General Motors by mayur
General Motors by mayurGeneral Motors by mayur
General Motors by mayur
mayur6789
 
The theory of business
The theory of businessThe theory of business
Failed mergers DaimlerChrysler
Failed mergers DaimlerChryslerFailed mergers DaimlerChrysler
Failed mergers DaimlerChrysler
Amrit Tandon
 
Volkswagen Emission Scandal
Volkswagen Emission Scandal Volkswagen Emission Scandal
Volkswagen Emission Scandal
Rohan Bharaj
 
Case Presentation: Harley Davidson Inc 2009
Case Presentation: Harley Davidson Inc 2009Case Presentation: Harley Davidson Inc 2009
Case Presentation: Harley Davidson Inc 2009
Thanakrit Lersmethasakul
 
The Core Competence of the Corporation
The Core Competence of the CorporationThe Core Competence of the Corporation
The Core Competence of the Corporation
Benny Herlambang
 
Daimler chrysler - a cultural mismatch
Daimler chrysler - a cultural mismatchDaimler chrysler - a cultural mismatch
Daimler chrysler - a cultural mismatch
Manju Thomas
 
General Motors Case Study
General Motors Case StudyGeneral Motors Case Study
General Motors Case Study
Charles Jose
 

What's hot (20)

Gm Presentation3
Gm  Presentation3Gm  Presentation3
Gm Presentation3
 
Ford motor company
Ford motor companyFord motor company
Ford motor company
 
General motors
General motorsGeneral motors
General motors
 
General Motors
General  MotorsGeneral  Motors
General Motors
 
General motor strategic management report
General motor strategic management report General motor strategic management report
General motor strategic management report
 
General Motors 2005: Crisis and Way Out
General Motors 2005: Crisis and Way OutGeneral Motors 2005: Crisis and Way Out
General Motors 2005: Crisis and Way Out
 
General Motor Strategic Management Analysis
General Motor Strategic Management AnalysisGeneral Motor Strategic Management Analysis
General Motor Strategic Management Analysis
 
Darden School of Business Tesla Strategic Analysis
Darden School of Business   Tesla Strategic AnalysisDarden School of Business   Tesla Strategic Analysis
Darden School of Business Tesla Strategic Analysis
 
Presentation on ford motor company (pom)
Presentation on ford motor company (pom)Presentation on ford motor company (pom)
Presentation on ford motor company (pom)
 
Daimler-Chrysler case study
Daimler-Chrysler case study Daimler-Chrysler case study
Daimler-Chrysler case study
 
Honda
HondaHonda
Honda
 
General Motors_Strategic Management
General Motors_Strategic ManagementGeneral Motors_Strategic Management
General Motors_Strategic Management
 
General Motors by mayur
General Motors by mayurGeneral Motors by mayur
General Motors by mayur
 
The theory of business
The theory of businessThe theory of business
The theory of business
 
Failed mergers DaimlerChrysler
Failed mergers DaimlerChryslerFailed mergers DaimlerChrysler
Failed mergers DaimlerChrysler
 
Volkswagen Emission Scandal
Volkswagen Emission Scandal Volkswagen Emission Scandal
Volkswagen Emission Scandal
 
Case Presentation: Harley Davidson Inc 2009
Case Presentation: Harley Davidson Inc 2009Case Presentation: Harley Davidson Inc 2009
Case Presentation: Harley Davidson Inc 2009
 
The Core Competence of the Corporation
The Core Competence of the CorporationThe Core Competence of the Corporation
The Core Competence of the Corporation
 
Daimler chrysler - a cultural mismatch
Daimler chrysler - a cultural mismatchDaimler chrysler - a cultural mismatch
Daimler chrysler - a cultural mismatch
 
General Motors Case Study
General Motors Case StudyGeneral Motors Case Study
General Motors Case Study
 

Similar to Chrysler case study

Fiatrchrysler Merger
Fiatrchrysler MergerFiatrchrysler Merger
Fiatrchrysler Merger
Mazlan Megat
 
SWOT daimlerchrysler
SWOT daimlerchryslerSWOT daimlerchrysler
SWOT daimlerchrysler
guest3b871f
 
SWOT daimlerchyrsler
SWOT daimlerchyrslerSWOT daimlerchyrsler
SWOT daimlerchyrsler
guest3b871f
 
Chrysler
Chrysler Chrysler
Chrysler
Rohit Patil
 
Thesis Presentation
Thesis PresentationThesis Presentation
Thesis Presentation
Jason Dillman
 
Damlier & chysler
Damlier & chyslerDamlier & chysler
Damlier & chysler
Preeti Gulati
 
Chrysler group llc_&_daimler_ag
Chrysler group llc_&_daimler_agChrysler group llc_&_daimler_ag
Chrysler group llc_&_daimler_ag
Aicha Oudaha
 
Mgt 505 chrysler
Mgt 505 chryslerMgt 505 chrysler
Mgt 505 chrysler
mominul_Islam
 
Daimler-Benz and Chrysler
Daimler-Benz and ChryslerDaimler-Benz and Chrysler
Daimler-Benz and Chrysler
jhawarya3
 
Danielchrysler (2)
Danielchrysler (2)Danielchrysler (2)
Danielchrysler (2)
Prithvi Ghag
 
Daimler Chrysler , M&A study - SPJCM
Daimler Chrysler , M&A study - SPJCM Daimler Chrysler , M&A study - SPJCM
Daimler Chrysler , M&A study - SPJCM
Apurva Chiranewala
 
Cars
CarsCars
Cars
m173958
 
Foundations by eric fleeks
Foundations   by eric fleeksFoundations   by eric fleeks
Foundations by eric fleeks
efleeks
 
Gm corporation (long verrsion) copy (1)
Gm corporation (long verrsion)    copy (1)Gm corporation (long verrsion)    copy (1)
Gm corporation (long verrsion) copy (1)
changtraithanghai
 
Rapp Chrysler PowerPoint
Rapp Chrysler PowerPointRapp Chrysler PowerPoint
Rapp Chrysler PowerPoint
megenbabyxoxo
 
20 century car design
20 century car design 20 century car design
20 century car design
Hirushan Siriwardhana
 
Bmw
BmwBmw
Diploma in Car Design-Assignment 1
Diploma in Car Design-Assignment 1Diploma in Car Design-Assignment 1
Diploma in Car Design-Assignment 1
Launchpad Academy
 
$17.4 billion financial lifeline extended to the big three united states auto...
$17.4 billion financial lifeline extended to the big three united states auto...$17.4 billion financial lifeline extended to the big three united states auto...
$17.4 billion financial lifeline extended to the big three united states auto...
Ram Charan
 
Harley Davidson _ strategy managment
Harley Davidson _ strategy managmentHarley Davidson _ strategy managment
Harley Davidson _ strategy managment
Nabeel Akram
 

Similar to Chrysler case study (20)

Fiatrchrysler Merger
Fiatrchrysler MergerFiatrchrysler Merger
Fiatrchrysler Merger
 
SWOT daimlerchrysler
SWOT daimlerchryslerSWOT daimlerchrysler
SWOT daimlerchrysler
 
SWOT daimlerchyrsler
SWOT daimlerchyrslerSWOT daimlerchyrsler
SWOT daimlerchyrsler
 
Chrysler
Chrysler Chrysler
Chrysler
 
Thesis Presentation
Thesis PresentationThesis Presentation
Thesis Presentation
 
Damlier & chysler
Damlier & chyslerDamlier & chysler
Damlier & chysler
 
Chrysler group llc_&_daimler_ag
Chrysler group llc_&_daimler_agChrysler group llc_&_daimler_ag
Chrysler group llc_&_daimler_ag
 
Mgt 505 chrysler
Mgt 505 chryslerMgt 505 chrysler
Mgt 505 chrysler
 
Daimler-Benz and Chrysler
Daimler-Benz and ChryslerDaimler-Benz and Chrysler
Daimler-Benz and Chrysler
 
Danielchrysler (2)
Danielchrysler (2)Danielchrysler (2)
Danielchrysler (2)
 
Daimler Chrysler , M&A study - SPJCM
Daimler Chrysler , M&A study - SPJCM Daimler Chrysler , M&A study - SPJCM
Daimler Chrysler , M&A study - SPJCM
 
Cars
CarsCars
Cars
 
Foundations by eric fleeks
Foundations   by eric fleeksFoundations   by eric fleeks
Foundations by eric fleeks
 
Gm corporation (long verrsion) copy (1)
Gm corporation (long verrsion)    copy (1)Gm corporation (long verrsion)    copy (1)
Gm corporation (long verrsion) copy (1)
 
Rapp Chrysler PowerPoint
Rapp Chrysler PowerPointRapp Chrysler PowerPoint
Rapp Chrysler PowerPoint
 
20 century car design
20 century car design 20 century car design
20 century car design
 
Bmw
BmwBmw
Bmw
 
Diploma in Car Design-Assignment 1
Diploma in Car Design-Assignment 1Diploma in Car Design-Assignment 1
Diploma in Car Design-Assignment 1
 
$17.4 billion financial lifeline extended to the big three united states auto...
$17.4 billion financial lifeline extended to the big three united states auto...$17.4 billion financial lifeline extended to the big three united states auto...
$17.4 billion financial lifeline extended to the big three united states auto...
 
Harley Davidson _ strategy managment
Harley Davidson _ strategy managmentHarley Davidson _ strategy managment
Harley Davidson _ strategy managment
 

Recently uploaded

The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...
ABHILASH DUTTA
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
bosssp10
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
LuanWise
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
2024-6-01-IMPACTSilver-Corp-Presentation.pdf2024-6-01-IMPACTSilver-Corp-Presentation.pdf
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
hartfordclub1
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
Susan Laney
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
my Pandit
 
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
my Pandit
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 
Training my puppy and implementation in this story
Training my puppy and implementation in this storyTraining my puppy and implementation in this story
Training my puppy and implementation in this story
WilliamRodrigues148
 
Understanding User Needs and Satisfying Them
Understanding User Needs and Satisfying ThemUnderstanding User Needs and Satisfying Them
Understanding User Needs and Satisfying Them
Aggregage
 
Authentically Social Presented by Corey Perlman
Authentically Social Presented by Corey PerlmanAuthentically Social Presented by Corey Perlman
Authentically Social Presented by Corey Perlman
Corey Perlman, Social Media Speaker and Consultant
 
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraTata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Avirahi City Dholera
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
SOFTTECHHUB
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
agatadrynko
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
thesiliconleaders
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
AnnySerafinaLove
 
Industrial Tech SW: Category Renewal and Creation
Industrial Tech SW:  Category Renewal and CreationIndustrial Tech SW:  Category Renewal and Creation
Industrial Tech SW: Category Renewal and Creation
Christian Dahlen
 

Recently uploaded (20)

The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
2024-6-01-IMPACTSilver-Corp-Presentation.pdf2024-6-01-IMPACTSilver-Corp-Presentation.pdf
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
 
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 
Training my puppy and implementation in this story
Training my puppy and implementation in this storyTraining my puppy and implementation in this story
Training my puppy and implementation in this story
 
Understanding User Needs and Satisfying Them
Understanding User Needs and Satisfying ThemUnderstanding User Needs and Satisfying Them
Understanding User Needs and Satisfying Them
 
Authentically Social Presented by Corey Perlman
Authentically Social Presented by Corey PerlmanAuthentically Social Presented by Corey Perlman
Authentically Social Presented by Corey Perlman
 
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraTata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s Dholera
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
 
Industrial Tech SW: Category Renewal and Creation
Industrial Tech SW:  Category Renewal and CreationIndustrial Tech SW:  Category Renewal and Creation
Industrial Tech SW: Category Renewal and Creation
 

Chrysler case study

  • 1.
  • 2. Uniqueness: An Absolute Essential Presented by: M.Taimur Harram
  • 3. OUTLINE: • Background of CHRYSLER • The Merger • New Leadership • A Distinctive New Car • The Hemi Engine • Conclusion
  • 4. Background of CHRYSLER • Chrysler is an American automobile manufacturer headquartered in Auburn Hills, Michigan. • The Chrysler Corporation was founded by Walter Chrysler in 1925.
  • 5. CHRYSLER: Causes of Success • In 1996,chrysler was clearly at the top of its game. • It invented the minivans and grand Cherokee which were an instant success.
  • 6. Contd.. • Both were successful because each was so distinctive, unusual and unique automobiles at that time.
  • 7. Successful Products of Chrysler • During that period,Chryler was riding on success of stylish products. They were unique looking family sedans. 1) Dodge Intrepid 2) Chrysler Concorde 3) Eagle Vision
  • 8. Chrysler: The Merger • In 1998 Chrysler merged with Daimler-Benz to form Daimler Chrysler AG.
  • 9. Contd.. Chrysler Daimler-Benz Moderate priced cars & light trucks Mercedes luxury cars & heavy trucks Strong in North America & Weak in western Europe Strong in western Europe & weak in north America Good at design & product development Good at engineering and technology
  • 10. Chrysler: Crisis • After the merger, next three years (1999 onward) was very tough for Chrysler. • Demand for Chrysler’s high margin minivans & SUV’s was cooling off, because the competition was catching up & Chrysler was standing still. Losing its momentum in developing distinctive cars.
  • 11. Chrysler: Causes of crisis • According to former Chrysler executives, The main cause of crisis was that “We hired too many people, at the same time, The company was making financial forecast that really had no basis in fact” • Passing up the opportunities for economies of scale by allowing each of the different car units to line up its own component supplier.
  • 12. Chrysler: New Leadership • Dieter Zetsche took over as CEO of Chrysler in 2000. • He found lots of complicated financial projections but no thorough analysis of company’s strength and weaknesses.
  • 13. Contd.. • Actions taken by dieter Zetsche. 1. Cutting 26,000 jobs. 2. Reducing the cost of parts by 15%. 3. Closed six assembly plants.
  • 14. Consequences • During 2003, market share declined to 13% • Company lost its 53 year position as America’s number three car maker • Operating losses of $685 billion
  • 15. • Now what to do!!!!!!1
  • 17. • Won enormous number of awards • “Motor Trend’s Car of the Year” • “It makes the majority of vehicles on the road look like blobs” noted in Business Week
  • 18. Why so Exciting???? • Incorporation of Benz five speed automatic transmission • High-end 300C model • 340-horsepower • 5.7-litre Hemi V8 engine
  • 19. Hemi Engine • Added $10,000 to price of Chrysler 300 • Surprisingly……… • Efficient during Highway driving • Cylinder Deactivation(25 miles/gallon) • Dieter Zetsche acknowledge “One of the building block of the turnaround of this company”
  • 20. Success with 2004 • Dodge Magnum sports wagon • Dodge caravan • Chrysler Town minivans • Operating profit of $1.9 billion as compared with loss of $685 million for 2003
  • 21. • GM and Ford got serious trouble • S & P rated them as JUNK • Many of their suppliers got bankrupt
  • 22. Results • Dieter Zetsche became CEO of Daimler-Chrysler • Unfortunately, Chrysler did not adjust production accordingly with no unique new models • Fall in 2006 • Again experienced $1.5 billion quarterly loss
  • 23. Conclusion • Chrysler has been on roller coaster for last 20 years • Whenever they got success, Get sloppy with its production Hires too many people Shut down the innovation

Editor's Notes

  1. This engine was built at low-wage mexican facility that actually cost 5 to 10 % less than modern dual overhead cam V-8( 4camshaft)