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Global Motors

Daimler Benz and Chrysler make for a potent combination because of complementary strengths

PRODUCTS
There is almost no overlap. Mercedes-Benz luxury cars compete in a market beyond Chrysler's mainstream offerings. Chrysler brings strength in minivans, profitable pickups, and sport-utility vehicles. Mercedes has hot-sellers like the E-class sedan and SLK roadster. The only overlapping model: Mercedes M-class, which goes against Jeep Grand Cherokee.

GEOGRAPHY
Each company is strong where the other is weak. Chrysler derives 93% of its sales from North America. Mercedes-Benz depends on Europe for 63% of its business. Each company is looking to strengthen its position in its partner's home market and conquer emerging markets together.

FINANCES
Both are among the world's richest auto makers, earning a combined $4.6 billion last year on sales of $130 billion. Chrysler is one of the lowest-cost auto manufacturers in America--a strength Mercedes could tap to expand beyond its lone U.S. factory in Alabama. And Mercedes, thanks to its premier quality, commands top dollar for its models.

CULTURE
This is where the match could be shaky. To survive its brushes with bankruptcy, Chrysler became the most nimble and lean player in Detroit. Daimler, however, has a history of bureaucratic and ponderous ways. Still, both companies have successfully repositioned their products and brands in recent years with stylish new models and daring marketing.





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