Crisler Corporation. Senior thesis (стр. 3 из 3)

In 1998, DaimlerChrysler spent $1.3 billion on environmental protection, according to the company’s Annual Environmental Report. Most of this amount (about $813 million) was spent on research and development activities on green products and manufacturing processes.[v]

Conclusion

There is only one thing can be said about the future of the new company—it is unclear. As one can see throughout the research, firstly after the merger investors strongly believed in the future of DaimlerChrysler, and as a result of that the stock price soared high. Recently the stock price has dropped significantly, but some believe that it is because entire market experiences slumps. As seen on the prior chart of the stock performance, DaimlerChrysler’s stock price lost 1/3 of its value. Another reason why the stock price slumps is that estimated earnings did not match actual ones. As a December 1999, difference in estimated and actual earning was ($0.64).[vi]

One of the positive aspects of the merger is intensified competition in the auto-production industry. The new company is far from monopolist size in this very giant market. General Motors and Ford Corporation are still main competitors of DaimlerChrysler.

Bibliography

[i] London CNN, http://CNNfn.com/, Monday, 27 March, 2000

[ii] Standard & Poors, Stock Report, March 4, 2000

[iii] Standard & Poors, Stock Report, March 4, 2000

[iv] www.daimlerchrysler.com

[v] www.daimlerchrysler.com

[vi] Yahoo Finance, Market Guide—Multex Earnings Estimates for DaimlerChrysler AG

Indirect sources

1. World Motor Vehicle Data, American Automobile Manufacturers Association, 1998

2. www.yahoofinance.com, Market Guide—Comparisons for DaimlerChrysler AG

3. “The Causes and consequences of antitrust”; the public-choice perspective; Fred S.McChesney, William F.Shughart II; University of Chicago Press, 1995.

4. “The corporate merger”; William W. Alberts & Joel E. Segall; University of Chicago Press, 1966