Airbus consortium.
Daimler-Benz was listed on the New York Stock Exchange, and had been since 1993 when it agreed to use Generally Accepted Accounting Procedures (GAAP), which were commonly in the United States but not throughout the rest of the world. In the years leading up to the merger, Daimler-Benz struggled with its profit margin, which hovered at approximately 2.6 percent. The company posted losses in 1993 and 1995, and had a net profit margin of only 0.8 percent in 1994. Sales for the five years leading to the merger increased at an average annual rate of only one percent (Joseph, 2000).
The merger between Chrysler and Daimler-Benz moved the company into the top-tier of world auto manufacturers. The combined company was the world's fifth largest automotive manufacturer with combined 1997 sales of $130 billion. Daimler-Benz had a strong reputation in luxury cars and commercial trucks complemented by a significant European presence and a well-known commitment to craftsmanship. Chrysler, on the other hand, had a strong presence in the American market (although it was not the dominant manufacturer) and a global pre
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