Strengths
DaimlerChrysler has acquired a brand name that is known and sold worldwide. They have also established a reputation for producing high quality cars. Diversity has enabled Daimler and Chrysler to share information with one another that can strengthen their business. With innovative products they have become one of the most successful and respected companies in the world. Successful experience in the past with groundbreaking technologies and "Tandem" and "Score" programs not only reduce cost, but also intensify cooperation with partners and spur further innovation. The ability for this company to ration out their profits will make the restructuring process more realistic and easier to obtain. Globally DaimlerChrysler sells brands in all price ranges to customers in all regions. This is a strength because it enables the customers to find a variety of styles and prices all within one major company. Size is a major strength because it enables them to utilize their business volume to capitalize on their innovation and achieve competitive advantage.
Weaknesses
The language barrier between the Germans and Americans can cause the company to have problems communicating on how the business should be maintained. Paying large employee benefits in Germany could cause conflict between the merging companies. At the time it might not be viewed as appropriate, for German employees to get a raise, considering layoffs and buyout plans are being offered to the Chrysler employees. The inability to profit from Chrysler products in Germany is a weakness because it prevents them from expanding their market globally. Chrysler erred by producing old-version minivans right up until the new models went on sale last summer, forcing it to sell huge numbers of the older models at deep discount. Chrysler also underestimated demand for its popular retro-style PT Cruiser. They were unable to shift quickly from producing a car that's in demand from one that's not because of its inflexible assembly line. Standard & Poor's and Moody's Investors Service lowered their debt and credit rating for Daimler Chrysler, making it more expensive for the company to borrow money.
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