Daimler-Chrysler is a global company presenting a product portfolio ranging from small cars to sports cars and luxury sedans and from versatile vans to heavy duty trucks and comfortable coaches. Its passenger car brands include Maybach, Mercedes-Benz, Chrysler, Jeep, Dodge, and smart. Commercial vehicle brands include Mercedes-Benz, Freightliner, Sterling, Western Star, and Setra. The company offers financial and other automotive services through Daimler-Chrysler Services (Daimler-Chrysler, 2004a).
Daimler-Chrysler's overarching strategy is based on four pillars: global presence, strong brands, a broad product range, and technology leadership. With over 362,000 employees, the firm achieved revenues of Euro 136.4 billion (US $171.9 billion) in 2003. A publicly held company, Daimler-Chrysler is traded on all of the world's key stock exchanges and is led by Chairman Professor Jurgen E. Schrempp (Daimler-Chrysler, 2004a).
Though positioned in a highly competitive global market and in a global economy experiencing downward revisions in vehicle sales forecasts, Daimler-Chrysler has enjoyed significant increases in unit sales and revenues, particularly in the Euro zone.
Daimler-Chrysler (2004b) states that the automotive industry is experiencing a degree of recovery in both Germany and the United States with sales increasing in both the commercial and personal vehicles sectors. A difficult market environment characterized the second quarter of 2004 and the company anticipates a significant improvement in operating profit for the full year of 2004 as compared with 2003. Nevertheless, sales for luxury cars in both Europe and the United States have declined while new technologies are reshaping many aspects of the industry. Of special significance is the emphasis on the new smart model series developed by the company (Daimler-Chrysler, 2004b).
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