Too many cars. Just saying so, of course, doesn't make it happen. The merger could founder on cultural and language differences, slow decision making, and labor disputes. Though labor representatives sit on Daimler-Benz's board in Germany, its new sport utility vehicle plant in Tuscaloosa, Ala., is nonunion. All of Chrysler's plants are organized by the United Auto Workers.
Consolidation is also underway among automotive supplier companies.
Both were still coming out of major internal difficulties. In addition, sales of its luxury cars slumped, especially in North America. Since then, however, the two have soared. Schrempp is credited with whipping Daimler-Benz into shape. Since he took over as chairman in 1995, he sold Fokker and a series of other businesses, trimmed management levels, reduced employment by 40,000, and returned the company to its core transportation business.