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Monday, March 19, 2007

Daimler HQ Unable to Get a Labor Break

Daimler Chrysler back until corner over the last few years.  The takeover of Chrysler by Dina Meyer has been one of the worst examples of how to integrate culture and create synergy amongst two businesses.  The German parent came in an attempted to perform a mix of culture indoctrination over its American acquisition, while at the same time cutting out costs as would happen in many different types of mergers.

Unfortunately they learned too late that the glue that held Chrysler together was its culture born of a Lee Iacocca age filled with many middle and senior managers that kept the ball rolling throughout the business.

Now is the rest of the auto industry is experiencing some of the worst years they've seen in decades, Chrysler's competitors including Ford and General Motors have both received concessions from auto worker unions.  Chrysler has been unable to get those same concessions putting them at a cost as advantage as compared to their competitors.  Labor unions have been politically taking stands that are very protectionist take and this could be an example of politics on an international level exercised by a US labor union.  It's probably more likely however that this is a little bit more of revenge against a parent company that didn't want to work with any of its stakeholders until it was too late.