Company Overview

Daimler AG formed after finally calling it quits from partner Chrysler.  DaimlerChrysler merged in 1998 in a $37 billion deal, but had a short, rough coexistence. Daimler's problems chiefly stemmed from the Chrysler side of the business which, like Ford and GM, is struggling with too much capacity, too few models that impress consumers, and high costs for parts and labor.  In 2007, Daimler sold 80 percent of Chrysler to Cerberus Capital Management for about $7.4 billion. Daimler's passenger car business, Mercedes-Benz Cars, including the Mercedes, Maybach (ultra-luxury cars), and smart (mini cars) brands. The company's Daimler Trucks North America (formerly Freightliner) unit is the US's #1 heavy-truck maker, and with its Fuso, Mercedes-Benz, and Sprinter brands, Daimler is the world's leading maker of commercial vehicles. The company has about a 15-percent stake in EADS, the European aerospace and defense consortium.

Sales picked up in 2005, but with the rise in gas prices, 2006 brought an accelerating downturn, particularly in sales of SUVs and trucks, and the company cut production to clear inventory. It also planned to cut thousands of jobs in Germany and reduce its administrative and management workforce by more than 20 percent in order to focus on engineering and technology. Daimler announced it would bring the Smart Fortwo minicar to the United States in 2008; the United Auto Group will handle distribution and service. And in a move to counter high fuel costs and tough, new emission standards, the company joined Audi and Volkswagen in launching Bluetec, a brand of highly fuel-efficient cars and SUVs with diesel engines. It also continues to work toward success in Asia, focusing its efforts on China.