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Daimler-Chrysler - Germans vs Americans

The Germans and the Americans have very different ways of working and integrating them was difficult. Indeed, the Germans learned to be less formal and cut down on paperwork, while the Americans learned to be more disciplined, but this was not enough.

One big mistake was a fear of anti-foreign feeling in America, so the Germans left local managers in charge in the US. This was almost their undoing, as the hands-off approach meant problems went unnoticed and the company made huge losses. The Germans sacked all the managers in the Detroit branch and sent in a hit squad. It was found that Chrysler’s managers in the US had become complacent, with quality and cost being neglected.

Chrysler’s German bosses have cut 45,000 jobs and closed 6 factories to align capacity with the cars the company can sell (being that the automobile industry is facing overcapacity issues at the moment).

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