|
|
|
BUYING AMERICANMay 7, 1998The NewsHour with Jim Lehrer Transcript |
|---|
Germany's Daimler-Benz and the Chrysler Corporation formally announced their merger today, forming the fifth largest automaker in the world. Following a background report, Jim Lehrer and guests discuss the ramifications of the deal.
SPENCER MICHELS: The merger between Daimler-Benz and Chrysler Corporation was formally announced today, at a joint news conference on neutral ground in London.
A RealAudio version of this segment is available.
NEWSHOUR LINKS:
May 7, 1998:
A discussion on the Daimler-Benz and Chrysler merger.
April 7, 1998:
Citicorp and Travelers announce a massive $83 billion merger.
November 10, 1997:
The bidding war for MCI finally ended with World Com's $37 billion bid .
August 6, 1997:
Margaret Warner leads a discussion of the new Apple-Microsoft Alliance.
July 23, 1997:
The EU approves the merger of two aerospace giants.
Browse the NewsHour's Business Index
OUTSIDE LINKS:
Visit the Web site of Daimler-Benz.
The Chrysler Web site.
More than a merger?
JÜRGEN SCHREMPP, Daimler-Benz Chairman: This is much more than a merger. Today we are creating the world's leading automotive company for the 21st century, DaimlerChrysler Aktiengesellschaft. We are combining the two most innovative car companies in the world, and I want to add this is the largest and biggest industrial merger ever.
ROBERT EATON, Chrysler: We believe this is just the beginning. We are leading a new trend that we believe will change the future and the face of this industry. As a result of being among the first, we had the ability to choose our favorite partners. You now have some idea why we see this transaction as a merger of equals.
SPENCER MICHELS: The Chrysler Corporation was formed in 1925 and soon ranked as one of the industry's "big three," along with General Motors and Ford. In the 1970's, gas prices surged. American car makers--which were producing gas
guzzlers--lost market share to foreign companies known for well-made, fuel-efficient cars. Chrysler faced bankruptcy.
Enter Lee Iacocca.
But with Lee Iacocca at the helm, the company applied for and received a controversial government loan of $1.2 billion. By 1983, Iacocca had turned the company around. It paid off the loans seven years early. A year later, it reported record earnings with the launch of its front-wheel-drive minivans. In 1988, Chrysler took
over American Motors from Renault of France, getting its popular jeep division, plus joint ownership of the Beijing Jeep Corporation of China. Iacocca resigned six years ago; Robert Eaton was named the company's new chairman. Today's Chrysler's 121,000 employees produce nearly 3 million vehicles, including the Chrysler, Dodge, Plymouth, Jeep and Eagle, which is soon to be discontinued. Daimler-Benz got its start in 1926 and is now Europe's largest industrial group--a conglomerate of 23 business units that include passenger cars, commercial vehicles, aerospace, and services. Daimler is best known for its craftsmanship, producing the luxury car, the Mercedes-Benz. U.S. sales of Mercedes-Benz have increased 67 percent this year in part because of the new M class sports utility vehicle. Still, the automaker has just 1 percent of the U.S. market. Daimler's 300,000 employees turn out 1.1 million cars and trucks.
The fifth largest automaker.
The new company--DaimlerChrysler--would rank fifth in sales internationally, behind General Motors, Ford, Toyota, and Volkswagen. Under the merger, Daimler-Chrysler will have two headquarters--one in Michigan, the other in Stuttgart, Germany. Both companies say no plant closings or layoffs are planned. For the next three years, DaimlerChrysler will have joint management. After that, Chrysler Chairman, Robert Eaton, will step aside, and Daimler-Benz chairman Juergen Schrempp will become sole chairman and chief executive.
JÜRGEN SCHREMPP, Daimler-Benz Chairman: We will work together. I only say I support everything he's done.
SPENCER MICHELS: Both corporate boards plus regulators in both countries must approve the transaction.
 |
        |
|
| Support the kind of journalism done by the NewsHour...Become a member of your local PBS station. | ||
| ||
| PBS Online Privacy Policy Copyright ©1996- MacNeil/Lehrer Productions. All Rights Reserved. | ||
| ||
