...Chrysler The company I selected to research is Chrysler. My husband drives a Dodge Ram and I drive a Dodge Journey, so I was intrigued to write about a company that my husband and I support. In the following business brief, I will inform you of Chrysler’s history, the industry, and the organizational structure. History Chrysler was founded in 1925. The company was founded by Walter P. Chrysler in Detroit. In 1928, Chrysler bought Dodge Brothers and also Plymouth and DeSoto Lines. The same year, Walter P. Chrysler was named Man of the Year (Wilson, 2011). In 1934, Chrysler introduced the first aerodynamically designed vehicle. They were praised for the forward design, but the commercial was a failure. In 1940, Walter P. Chrysler died. From 1942 to 1945 the Chrysler plant was shut down due to World War II, so the plant made Sherman tanks and other military vehicles (Wilson, 2011). In 1973 the first OPEC oil embargo drives up gas prices, which devastated full-size car sales (Wilson, 2011). In 1979, Chrysler was saved by Congress and President Carter from bankruptcy, and the following year the President signed the Chrysler Loan Guarantee Act, providing $1.5 billion in loan guarantees. In 1983, sales soar as Chrysler introduced the first minivan and fuel efficient cars they called K-cars. This enabled Chrysler to pay off their government loan seven years early. In 1987, Chrysler bought American Motors Corp, which gave them possession of the Jeep brand. In 1998...
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...Lee Iacocca Chrysler Turnaround Rodger Strother Keller Graduate School of Management Executive Summary Chrysler was founded by Walter Chrysler on June 6, 1925 when the Maxwell Motor Company (established 1904) was re-organized into the Chrysler Corporation. Walter Chrysler has arrived at the Maxwell organization in the early 1920’s and launched the Chrysler vehicle. This new vehicle had six cylinders with advanced engineering and was more affordable. This vehicle included (new at the time) air filter for carburetor, a high compression engine, full pressure lubrication. Among the new innovations at the time was the fact that it was the first mass produced practical four wheel hydraulic brakes and rubber engine mounts to reduce vibrations. It was during the early 1920’s that Walter Chrysler assumed the presidency of Maxwell and the company incorporated under the Chrysler name. From the company’s conception the Chrysler name continued down the path of continued growth and acquisitions of various and numerous brands that would in the years be associated with the Chrysler name. Dodge, Plymouth, AMC, DeSoto and various others over the years. The years following the Second World War with the restraint on consumer goods lifted there was an increase demand for automobiles. Vehicles steadily became more reliable and the implementation of interstate highway plans with more paved roads this attracted more motorist. This resulted in an overall expansion of the automotive industry...
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...Synopsis In 1921, Walter P. Chrysler became chairman of Maxwell Motor Corporation. Due to its high debts and declining sales after World War I, automobile production under Maxwell was stopped. In 1924, the Chrysler Six was launched in the U.S. for $1,565.00. Chrysler Motors LLC has been the third largest automobile manufacturer in the United States since 1928 with its acquisition of the Dodge Brothers firm. Over the years the company introduced many different models, but they were able to survive The Great Depression due to the strong sales of their entry-level Dodge and Plymouth brands. Chrysler’s many automobile innovations such as the HEMI engine developed in 1951, power steering, power windows, power brakes, the alternator and electronic fuel injection have made them extremely popular with consumers (Wheelen & Hunger, 2012, p. 17-2). By 1960s, Chrysler expanded their company into Europe through multiple company acquisitions, but with environmental pollution issues and the oil crisis of the 1970’s Americans started preferring Japanese’s fuel-efficient cars instead of bigger American cars causing sales to decline. In 1979, Chrysler promoted Iacocca as Chairman and CEO who in turn revamped the company and set up a new management team. He started cost-cutting measures to lower their $4.75 million debt and expanded the line of their passenger automobiles through a $1.5 billion federal loan (Wheelen & Hunger, 2012, p. 17-3). In 1983, the company had recovered from their crisis...
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...Fiat and Chrysler Merger: An Analysis of the alliance of Fiat and Chrysler Taneka Littlejohn Sonya Merrill August 29, 2011 1 Table of Contents Project Outline I. Executive Summary II. Introduction III. Company Profile and Environment (Context) IV. Strategic Issues and Reverence V. Stakeholder Impact VI. Conclusions and Recommendations VII. Bibliography 3-4 5-6 7 8-9 10-12 12-13 13-14 15 2 Project Outline I. Discuss history of Chrysler Group A. Discuss Chrysler’s start within the automotive industry B. Discuss some of the automobiles that Chrysler makes C. Discuss Chrysler’s position within the automotive market II. Discuss history of Fiat SPA A. Discuss Fiat’s start within the automotive industry B. Discuss some of the automobiles that Fiat makes C. Discuss Fiat’s position within the automotive industry III. Discuss how both automobile firms have had past reputations in America. A. Discuss when Fiat first came to the United States B. Discuss why Fiat suddenly left the United States C. Discuss Chrysler impact within the American market and how America’s past look on their automobiles shaped its future. IV. Discuss some of the competitors of Chrysler and Fiat A. Discuss how competition affected both firms B. Discuss how Chrysler and Fiat at one point were competition for one another V. Cultural Context A. Culture aspects of the Chrysler- Fiat alliance B. Discuss how society and positioning have affected both automobile firms C. Discuss some recent news about the...
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...Communities, and families of the Employees OMM 640 Keanon Alderson June 13, 2011 In an organization there will be times where certain decisions have to be made whether bad or good. The decisions will affect the company, stakeholders, and the employees in one way or another. Changes can come from many different factors. It can be changes to improve the company, compete with the competition, or the economy. Now and days the changes that many companies are making is changes due to the economy. Companies are looking to save money. Companies are cutting back the matching of the 401K, cutting back on employees hours, and some companies are even shutting down all together. We will be taking a look at how a wealthy popular car company, Chrysler, has filed for bankruptcy in this economic downturn which in turn has an effect on employees, the community, and the families of the employees. In the past two years America has been hit pretty hard economically. Gas prices have risen to almost 5.00 a gallon in some states. Peoples light bills have been as high as 500.00 or more. People have lost many jobs and can’t find a job because so many employers are cutting back to try and save what’s left of their company. Many homes are being foreclosed because people can’t afford to pay their house note because they don’t have a job or because there were cutbacks on their commission. Its many factors that have played a part in why the economy is the way it is today. One of the effects...
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...Term project Operation Management CHRYSLER: [pic] Total Quality Management Submitted to Dr. Chafik Abid CONTENTS -Introduction…………………………………………………. -Chrysler Total Quality management………………………. -Chrysler SWOT Analysis…………………………………… -Chrysler service Quality…………………………………….. -Chrysler service and dealership Problems (Middle East)… -Chrysler Service solution……………………………………. -Conclusion……………………………………………………. -Work Cited…………………………………………………… INTRODUCTION: DaimlerChrysler AG with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the largest manufacturer of commercial vehicles in the world. As it can be seen above that the integration of the two different companies with similar line of production makes the company stronger, reliable, and caters the best for its customer needs and satisfactions. As a result, we chose this company to discuss further on its Total Quality Management and other related issues. Total Quality Management is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement. TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge...
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...2008 Collapse of Chrysler Melinda A. Dobson MGT 435 Organizational Change Robert Hamamoto November 18, 2011 The 2008 Collapse of Chrysler Beginning in the late half of 2008, a global recession hit the economy of the United States. With a combination of several years of declining automobile sales and the limited availability of credit led to a more widespread crisis in the United States auto industry in 2008 and 2009. Soon after the dramatic decline in sales, the U.S automaker, Chrysler, requested emergency loans from the government in order to stay afloat. In 2009, Chrysler’s situation had gotten worse and was faced with imminent bankruptcy and liquidation. With that being said, I would like to discuss the changes that have been implemented to Chrysler, identify new changes that still need to be implemented and assess the effectiveness of the change and the potential benefits of the new changes. Chrysler is an American automobile manufacturer that has built automobiles since 1925 and was the second largest automaker between 1936 and 1949. After a merger with Daimler-Benz Corporation in 1998, Chrysler was part of the German based DaimlerChrysler now known as Daimler AG. Chrysler suffered from poor management and lack of investment until 2007 when the company was sold to Cerberus Capital Management. Under DaimlerChrysler, the company went by the name of “DaimlerChrysler Motors Company LLC,” with its U.S operations referred to as the “Chrysler Group.” Then Daimler-Benz...
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...Chrysler and Daimler merger case 1) in 1998 the worldwide car market is growing (from 46 million in 1993 to 52 million in 1997), but more and more competitor are present in this business market in a worlwide level. In the 90's the incumbent competitors are threatening by the emergence of Korean manufacturers ( Hyundai, Kia ), because the firm are offering cheap and good quality cars. the emerging firms in the 90's are from Asia, where the work force is cheaper than in westerners country, in this way these firms can offering a high quality product ( Lexus, Infinity, etc) for an affordable price. Thus High end firms as Mercedes, BMW, are threatened by those firms. In this way to face with the competition most of companies are shifting their production toward developing countries for reducing their cost and compete in a better way with these emerging firms. Moreover according to some analysts there would be a reduction from 39 current producers to 20 major companies. That would be because of the high competition that would be especially due to present in the market. Furthermore each year the plant capacity exceeded demand of cars by15 million vehicles, thus the profitability of the firms is reduced, and that affect on the long term financial health of the different firms. Finally the industry is stroke by several mergers and acquisitions, which reinforce the competition in the markets. 2) In my point of view the merger make sense, because in a competitive market firms face...
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...In order to persist in a competitive market, corporations must make profit. The basic structure of all interactions under competitive conditions can be a Catch-22 (McGrath, 1984). There will always be mutual and contradictory interests at the same time. Chrysler Corporation had common economic interest, however they had conflicting cultural and moral views. In order to create value in and for organizations, it is sometimes effective to focus on expanding options, creating new ideas, self-organizing, and collaborative learning. Executive Chief Sergio Marchionne put a great deal of emphasis on changing the corporate culture at Chrysler. One way to assess his vision for Chrysler’s new culture is to classify it using the competing values framework (CVF). CVF provides a practical way for managers to understand, measure, and change organizational culture. The four basic types of culture include clan, adhocracy, hierarchy, and market (Kreitner & Kinicki 2013). As is the case with Chrysler, organizations may possess characteristics of each type, but they generally have one that is more dominant. At first glance it appears that Chrysler’s functions under a market culture; “a market culture has a strong external focus and values stability and control (Kreitner & Kinicki 2013).” It is clear that the primary goal of Marchionne was profitability, giving the company an external position. Secondly, Marchionne implemented change by his reaction to incidents and organizational crises...
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...In 1896 Henry Ford built the first car and then he reconstructed the industry with the invention of the assembly line. This allowed him to mass produce the cars which then allowed them to be more more affordable to buyers. In 1925, Walter Chrysler founded the Chrysler company and by 1928, he bought out the Fargo truck company and Dodge Brothers company. In the same year, Chrysler also founded the Plymouth automobile brand. Chrysler, is an American automobile manufacturer located in Auburn Hills, Michigan. It is one of the three major American automotive companies which includes General Motors and Ford. One general environment that ranks high in its influence on Chrysler is technology. Now days technology is a huge part of everyone’s daily life. Whether it be social or business wise we must deal with it in some way. In 2002, a study was done to show just how much the internet affects buyers purchases. J.D. Power & Associates found that almost 60% of consumers go to the internet before buying a car. They went one step further and found out that 88% of those consumers went to an auto website before stepping foot at a dealership. Technology as also affect the way companies now build cars. With so many concerns as to wear the economy and environment will be in the next 20 years, they now have to find way to make sure they are two steps ahead when the times change. Companies at first were concerned about the cost of making a technology effect car and also the safety factors in...
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...bring together the two cultural differences between Daimler-Benz AG and the Chrysler Corporation that would create a positive and profitable synergy for DaimlerChrysler as a whole, while regaining stockholders trust. As the post-merger integration process accelerates, they need to identify opportunities to increase sales, reduce purchasing costs, and create new markets for DaimlerChrysler. DaimlerChrysler internal environment, the company went through many changes post-merger. Starting with the creation of the “Dream Team” in 1998, resignations of key members of the dream team led to a two-tiered board system: the supervisory board and the board of management. There was apparent unrest among top executives and a growing chasm between the Americans and Germans due to differences in management styles, processes, cultures and work styles. DaimlerChrysler implemented a variety of exchange programs designed to help the two companies meld an understanding of the cultural differences between the two and their respective countries. They created the Automotive Council, which allowed the sharing of innovation, knowledge, technologies and ideas between the two companies to drive future product integration. They also created the Executive Automotive Committee (EAC) which worked towards corporate integration and the analyzing of products, powertrains and components to find commonalities between Daimler-Benz and Chrysler. Finally, I believe the DaimlerChrysler organization has a sustainable competitive...
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...Quentin I- Presentation of the company The company was founded by Walter Chrysler (1875–1940) on June 6, 1925. The headquarters are in Auburn Hills in the Michigan. The brand was at the beginning a premium luxury position competing with the brands Cadillac. Chrysler was the top brand in the portfolio of what was then known as Chrysler Corporation. Chrysler's positioning changed several times over the years. Indeed, The Chrysler brand was originally a premium luxury position competing with Cadillac and Lincoln through the cars Imperial.Then, Chrysler's positioning of the Chrysler brand towards a mid-price brand caused Chrysler to kill the brand DeSoto after 1961.After that, in 1975, Chrysler once again became the top brand, with range of products competing with both luxury and near luxury brands like Buick. During the 1980s the Chrysler brand took on a similar role as Oldsmobile or Mercury by offering entry-level luxury cars of various types and sizes. Before the Fiat's acquisition of a 20% stake in Chrysler in 2009, Chrysler had a discontinued line of cars with economy car and sport cars. This strategy ended when the company was threatened with an imminent bankrupt in 2008. That’s why, in December 2008, U.S. President George W. Bush agreed to a $4 billion bailout for Chrysler and another one of $8.5 billion was also given by the President Barack Obama early in his administration. Chrysler LLC (new company emerged from a bankruptcy reorganization) received loans...
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...Case Study 3 The 2009 Chrysler-Fiat Strategic Alliance 1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? When it comes to dealing with worldwide economic recession, grave steps have to be taken in order to ensure the survival of businesses, as too many livelihoods depend on it. Also, due to the investments that shareholders make, and the wide array of other businesses that the company would affect, it puts a lot of pressure on the board or the people running the company to make sure that they survive the bad times and emerge victorious. For Chrysler, it was a major setback when Daimler decided to withdraw its partnership and give its 80 per cent stake to Cerberus for less than 1/4th of the price they bought it for. Chrysler was doing badly, and although known as the “Number Three” car in North America, it was not able to keep up and had to declare bankruptcy and was told to form a strategic alliance with a company as a part of the Obama Administration rescue plan. Fiat has had its own share of ups and downs, but in the European market it has proven to be successful. It withdrew itself from the North American market in the nineteen eighties as it could not keep up there. But now, with its strategic alliance with Chrysler, it can benefit by entering into the North American market without having to push too much as Chrysler is already a well-known brand there. The Strategic Alliance was definitely very...
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...Annual Report Chrysler Group LLC. CHRYSLER GROUP LLC ($Mils) | | | Q4 2012 | | | FY 2012 | | Q4 | Q4 | B/(W) | FY | FY | B/(W) | | 2012 | 2011 | Q4 2011 | 2012 | 2011 | FY 2011 | Net Revenue | 17,152 | 15,129 | 2,023 | 65,784 | 54,981 | 10,803 | Modified Operating Profit | 711 | 508 | 203 | 2,912 | 1,975 | 937 | Modified EBITDA | 1,337 | 1,171 | 166 | 5,450 | 4,754 | 696 | Net Income | 378 | 225 | 153 | 1,668 | 183 | 1,485 | Add: Loss on Extinguishment of Debt | - | - | - | - | 551 | (551) | Adjusted Net Income | 378 | 225 | 153 | 1,668 | 734 | 934 | Cash | 11,614 | 9,601 | 2,013 | | | | | | | | | | | Note – Refer to the Non-U.S. GAAP Financial Information and Other Items section of this release for information regarding non-GAAP financial measures 2013 Guidance The targets for 2013 are as follows: Worldwide vehicle shipments of ~2.6-2.7 million Net revenue of ~$72-75 billion Modified Operating Profit of ~$3.8 billion Net income of ~$2.2 billion Free Cash Flow of ≥$1 billion Table 1: Reconciliation of Net Income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA | CHRYSLER GROUP LLC | | | | | | | | | | | | | | | Q4 2012 | | | FY 2012 | | | | ($Mils) | | | | | | | | | | | | | Q4 | Q4 | B/(W) | FY | FY | B/(W) | | | | | | | | | | | | | | | | | 2012 | 2011 | Q4 2011 | 2012 | 2011 | FY 2011 | | | | Net Income | 378 | 225 | 153 | 1...
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...2013 Case 7 The 2009 Chrysler-Fiat Strategic Alliance 1. The strategic alliance was defiantly needed. This was important since Chrysler has a tremendous loss in 2008 and had to lay off many of their workers. They were also going bankrupt, so this was the best option to keep them afloat. They could not keep up with the economy and needed to get help from someone. This deal made sense for Fiat, since they could get the company at a low price and re-enter into North America. They also have a good thing going in that fact that they own 21 percent since 2009, then can get it increased to 35 percent this year and eventually might have 51 percent of the company. This was not the most ideal thing for Chrysler, but it was necessary. 2. Chrysler has a brand name in North America, where Fiat lacks the visibility. Fiat has been very successful in Europe, where Chrysler does not have a strong dealer network there. Chrysler finds new markers by developing new range of vehicles. After the merger, Chrysler emerges from the bankruptcy and starts to restructure and Fiat gains a brand in North America and technology from here. 3. Chrysler had always been behind Ford and GM and was known as the “number three.” Since the merger, they were able to gain more in Europe and new technology. As they are still not the number one company they have bettered themselves and are on the rise. The other five companies are still on the rise as well, so Chrysler-Fiat will have to work extra...
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