Daimler's search for a new profit strategy

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The Daimler group was hit by the economic crisis in a situation of reconsidering its business strategy alter the breakup of the Chrysler merger and the alliances with Mitsubishi and Hyundai. In the traditional European and North American markets, Audi and BMW are strong competitors in the upper class segments. In the compact segment a new A and B-class platform has to be finished and implemented not only in the traditional Rastatt plant but also in the new Hungarian site under construction and destined to access the growing eastern European markets. The emerging Asian markets with China and India at the lead demand for a new strategy without Asian partners. The race for fuel efficient and low emission drive technologies has begun with uncertain outcomes. Daimler is facing a lot of strategic challenges far beyond the current economic downturn and with a structural disadvantage: after the retirement of the Deutsche Bank as a strategic shareholder (the end of the ‘Deutschland AG’) Daimler has no protection against the volatile capital market (difference to BMW and VW-Audi).