DaimlerChrysler
Encyclopedia
Daimler AG (ˈdaɪmlɐ aːˈɡeː; formerly DaimlerChrysler) is a German
car corporation. By unit sales, it is the thirteenth-largest car manufacturer
and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures bus
es and provides financial services through its Daimler Financial Services
arm. The company also owns major stakes in aerospace group EADS
, high-technology and parent company of the Vodafone McLaren Mercedes racing team McLaren Group
(which currently is in the process of becoming a fully independent stand-alone corporate entity), and Japanese truck maker Mitsubishi Fuso Truck and Bus Corporation
.
DaimlerChrysler was founded (1998–2007) when Mercedes-Benz
manufacturer Daimler-Benz
(1926–1998) of Stuttgart, Germany merged with the U.S.-based Chrysler Corporation
in 1998. The deal created a new entity, DaimlerChrysler. However, the buyout failed to produce the trans-Atlantic automotive powerhouse dealmakers had hoped for, and DaimlerChrysler announced on May 14, 2007 that it would sell Chrysler to Cerberus Capital Management
of New York, a private equity
firm that specializes in restructuring troubled companies. On October 4, 2007 a DaimlerChrysler Extraordinary Shareholders' Meeting approved the renaming of the company. From October 5, 2007, the company has been titled Daimler AG. The U.S. company adopted the name Chrysler LLC
when the sale completed on August 3, 2007.
Daimler produces cars and trucks under the brand
s of Mercedes-Benz
, Maybach
, Smart
, Freightliner
and many others.
An Agreement of Mutual Interest was signed on May 1, 1924 between Benz & Cie (founded 1883) of Karl Benz
and Daimler Motoren Gesellschaft
(founded 1890) of Gottlieb Daimler
and Wilhelm Maybach
.
Both companies continued to manufacture their separate automobile and internal combustion engine brands until, on June 28, 1926, when Benz & Cie. and Daimler Motoren Gesellschaft AG formally merged—becoming Daimler-Benz
AG
—and agreed that thereafter, all of the factories would use the brand name of Mercedes-Benz
on their automobiles.
In 2007, when the Chrysler group was sold off to Cerberus Capital Management
(see below), the name of the parent company was changed to simply "Daimler AG".
Daimler Motoren Gesellschaft AG
, 1890–1926
Daimler-Benz AG
, 1926–1998
DaimlerChrysler AG, 1998–2007
Daimler AG, 2007–present
AG "merged" with the American automobile manufacturer Chrysler Corporation
in an exchange of shares, and formed DaimlerChrysler AG. The terms of the merger allowed Daimler-Benz
's non-automotive businesses such as Daimler-Benz InterServices AG (Debis) (created in 1989 to handle data processing, financial and insurance services, and real estate management for the Daimler group) to continue to pursue their respective strategies of expansion. Debis reported revenues of $ 8.6 bn (DM 15.5 bn) in 1997.
investor lawsuit was settled in August 2003 for US$300 million while a suit by billionaire investor activist Kirk Kerkorian
was dismissed on April 7, 2005. The transaction claimed the job of its architect, Chairman Jürgen E. Schrempp
, who resigned at the end of 2005 in response to the fall of the company's share price following the transaction. The merger was also the subject of a book Taken for a Ride: How Daimler-Benz Drove Off With Chrysler, (2000) by Bill Vlasic and Bradley A. Stertz.
Another issue of contention is whether the merger delivered promised synergies and successfully integrated the two businesses. As late as 2002, DaimlerChrysler appeared to run two independent product lines. Later that year, the company launched products that appear to integrate elements from both sides of the company, including the Chrysler Crossfire
, which was based on the Mercedes SLK platform and utilized Mercedes's 3.2L V6, and the Dodge Sprinter/Freightliner Sprinter, a re-badged Mercedes-Benz Sprinter
van. The fourth-generation Jeep Grand Cherokee
is based on the Mercedes-Benz M-Class
despite the fact it had been nearly four years after the Daimler/Chrysler split.
in May 2007 for US$6 billion. Through most of its history, Chrysler has been the third largest of the "Big 3" U.S. automakers, but in January 2007, DaimlerChrysler, excluding its luxury Mercedes and Maybach lines, also outsold traditionally second place Ford, though behind General Motors and Toyota.
Chrysler reported losses of US$1.5 billion in 2006. It then announced plans to lay off 13,000 employees in mid-February 2007, close a major assembly plant and reduce production at other plants in order to restore profitability by 2008.
DaimlerChrysler had reportedly approached other carmakers and investment groups to sell Chrysler in early 2007. General Motors
was reported to be a suitor while Volkswagen
, the Renault
-Nissan auto alliance, and Hyundai Motor Company
had said that they weren't interested in buying the company.
On August 3, 2007, DaimlerChrysler completed the sale of Chrysler Group to Cerberus Capital Management
. The original agreement stated that Cerberus would take an 80.1 percent stake in the new company, Chrysler Holding LLC. DaimlerChrysler changed its name to Daimler AG and retained the remaining 19.9% stake in the separated Chrysler.
The terms saw Daimler pay Cerberus US$650 million to take Chrysler and associated liabilities off its hands. Of the US$7.4 billion purchase price, Cerberus Capital Management
will invest US$5 billion in Chrysler Holdings and US$1.05 billion in Chrysler’s financial unit. The de-merged Daimler AG received US$1.35 billion directly from Cerberus but directly invested US$2 billion in Chrysler itself.
Since Chrysler's 2009 bankruptcy filing in the United States
, Chrysler has been controlled by Italian
automaker Fiat
, which unlike Daimler plans to integrate Chrysler's products into the Fiat portfolio, most notably Lancia
and Chrysler's namesake brand
.
-Nissan executive, Carlos Ghosn
and Dr. Dieter Zetsche
announced a partnership between the three companies in a joint press conference.
has been the Chairman of Daimler and Head of Mercedes-Benz Cars since January 1, 2006 as well as member of Board of Management since 1998. He was former President and CEO of the Chrysler, LLC
(previously owned by Daimler AG), he may be best known in the United States as Dr. Z from a Chrysler advertising campaign called "Ask Dr. Z".
Current members of the Board of Management of Daimler AG are:
Current members of the Supervisory Board of Daimler AG are: Heinrich Flegel, Juergen Hambrecht, Thomas Klebe, Erich Klemm, Arnaud Lagardère
, Jürgen Langer, Helmut Lense, Sari Baldauf
, William Owens, Ansgar Osseforth, Valter Sanches, Manfred Schneider
, Stefan Schwaab, Bernhard Walter, Lynton Wilson, Mark Wössner, Manfred Bischoff, Clemens Börsig and Uwe Werner. Dr Manfred Bischoff serves as the Chairman of the Supervisory Board of Daimler AG and Erich Klemm as Vice-Chairman.
by Region
using Tesla's battery technology.
Daimler works with China's Beiqi Foton (a subsidiary of BAIC) to build Auman trucks, and with BYD to develop EV technology.
charges brought by the U.S. Justice Department and the U.S. Securities and Exchange Commission. Daimler itself will pay US$185 million as a settlement, but the company and its Chinese subsidiary
remain subject to a two-year deferred prosecution agreement
which requires further cooperation with regulators, adherence to internal controls and meeting other terms before they are required to return to the court room. Daimler will face harsher penalties if the company fails to meet the terms of the agreement during the two-year period.
Additionally, Louis J. Freeh, a former director of the Federal Bureau of Investigation
, will serve as an independent monitor to oversee Daimler’s compliance with anti-bribery laws.
U.S. prosecutors accused key executives of Daimler, Daimler subsidiaries, and Daimler affiliates of illegally giving foreign officials money and gifts between 1998 and 2008 to secure government contracts around the world. The investigation for the case revealed that Daimler improperly paid some $56 million in bribes related to more than 200 transactions in at least 22 countries (including China, Russia, Turkey, Hungary, Greece, Latvia, Serbia and Montenegro, Egypt and Nigeria, among other places) that, in return, awarded the company $1.9 billion in revenue and at least $91.4 million in illegal profits.
The SEC case was sparked in 2004 after David Bazzetta, a former auditor at then DaimlerChrysler Corp, filed a whistleblower
complaint after he was fired for raising questions about bank accounts controlled by Mercedes-Benz units in South America
. Bazzetta alleged that he learned in a July 2001 corporate audit executive committee meeting in Stuttgart
that business units "continued to maintain secret bank accounts to bribe foreign government officials," though the company knew the practice violated U.S. laws.
In another attempt to silence Bazzetta, Daimler later offered to settle his termination of employment suit out of court and he eventually accepted a settlement. But Daimler's strategy with Bazzetta proved to be a failure as the U.S. criminal investigation for violating anti-bribery laws was already underway in what is one of the most wide-ranging cases brought against a foreign corporation.
According to the charges, the bribes were frequently made by over-invoicing customers and paying the excess back to top government officials or their proxies. The bribes also took the form of luxury European vacations, armored Mercedes vehicles for high-ranking government officials and a birthday gift to a senior Turkmenistan
official including a golden box and 10,000 copies of the official's personal manifesto
translated into German.
Investigators also found that the firm violated the terms of the United Nations' Oil-for-Food Programme
with Iraq
by giving kickbacks worth 10% of the contract values to officials within the Iraqi government, then led by Saddam Hussein
. The SEC said the company made more than $4 million from the sale of vehicles and spare parts in the corrupt Oil-for-Food deals.
U.S. prosecutors further alleged that some bribes were paid through shell companies based in the U.S. "In some cases Daimler wired these improper payments to U.S. bank accounts or to the foreign bank accounts of U.S. shell companies in order to transmit the bribe," the court papers said.
Prosecutors said that Daimler engaged in a "long-standing practice" of paying bribes, due in part to a corporate culture that encouraged the practice.
"Using offshore bank
accounts, third-party agents and deceptive pricing practices, these companies [Daimler AG, its subsidiaries and affiliates] saw foreign bribery as a way of doing business," said Mythili Raman, a principal deputy in the Justice Department’s criminal division.
"It is no exaggeration to describe corruption
and bribe-paying at Daimler as a standard business practice," Robert Khuzami
, director of the SEC's enforcement division, said in a statement.
"We have learned a lot from past experience," Dieter Zetsche, chairman of Daimler's board, said in a statement.
As per the agreement with prosecutors, the two Daimler subsidiaries admitted to knowingly violating the Foreign Corrupt Practices Act
, which bars companies and their officials from paying bribes to foreign officials to win business. The Foreign Corrupt Practices Act applies to any company that lists its shares on U.S. stock exchanges. Daimler AG was listed with the symbol "DAI" on the NYSE, giving the Justice Department jurisdiction over the German car maker's payments in countries around the globe.
Judge Richard J. Leon
of United States District Court in Washington, D.C.
, approved the plea agreement and settlement, calling it a "just resolution."
The primary case is USA v. Daimler AG, United States District Court for the District of Columbia
, No. 10-00063.
DaimlerChrysler
is also known for assisting in translation to German language in 2003 of the first part of the Ruhnama
book written by Turkmenbashi, the notorious former dictator of Turkmenistan . Allegedly, this helped the company to gain contracts in Turkmenistan.
as a biofuel
.
are going to begin a joint electric car and charging station
test project in the German capital, Berlin
, called "E-Mobility Berlin".
Mercedes-Benz is launching its first passenger car model equipped with a hybrid drive system in summer 2009, the Mercedes-Benz S 400 HYBRID.
Daimler Trucks is the world market leader in hybrid systems. With its “Shaping Future Transportation” initiative, Daimler is pursuing a clear-cut objective for trucks and buses. The Mitsubishi Fuso “Aero Star Eco Hybrid” is now setting new standards in practical trials in Japan.
. The company was rebranded as Mercedes GP
. Ross Brawn will remain team principal and the team will be based in Brackley, UK. However the purchase of Brawn meant that Daimler will sell its 40% stake in McLaren back in phases which will end in 2011. Mercedes will continue to provide sponsorship and engines to McLaren until 2015, when McLaren will probably have to find an engine supplier or make its own engines. Mercedes owns 45.1% of the new company with 30% for Aabar Investments and 24.9% for Ross Brawn. The racing team has signed the former champion Michael Schumacher.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
car corporation. By unit sales, it is the thirteenth-largest car manufacturer
Automaker
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....
and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures bus
Bus
A bus is a road vehicle designed to carry passengers. Buses can have a capacity as high as 300 passengers. The most common type of bus is the single-decker bus, with larger loads carried by double-decker buses and articulated buses, and smaller loads carried by midibuses and minibuses; coaches are...
es and provides financial services through its Daimler Financial Services
Daimler Financial Services
Daimler Financial Services is the global financial services provider of Daimler AG, providing financing, leasing, insurance, fleet management, insurance services, banking and credit/debit cards services in more than 40 countries....
arm. The company also owns major stakes in aerospace group EADS
EADS
The European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...
, high-technology and parent company of the Vodafone McLaren Mercedes racing team McLaren Group
McLaren Group
The McLaren Group, based at the McLaren Technology Centre in Woking, Surrey, England, is a group of companies created by Ron Dennis, described by the International Herald Tribune as "a small conglomerate"...
(which currently is in the process of becoming a fully independent stand-alone corporate entity), and Japanese truck maker Mitsubishi Fuso Truck and Bus Corporation
Mitsubishi Fuso Truck and Bus Corporation
The Mitsubishi Fuso Truck and Bus Corporation is a German-owned, Japan-based manufacturer of trucks and buses. It is headquartered in Kawasaki-shi, Kanagawa, Japan. This company is one of the World's largest truck manufacturers...
.
DaimlerChrysler was founded (1998–2007) when Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
manufacturer Daimler-Benz
Daimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...
(1926–1998) of Stuttgart, Germany merged with the U.S.-based Chrysler Corporation
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
in 1998. The deal created a new entity, DaimlerChrysler. However, the buyout failed to produce the trans-Atlantic automotive powerhouse dealmakers had hoped for, and DaimlerChrysler announced on May 14, 2007 that it would sell Chrysler to Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
of New York, a private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm that specializes in restructuring troubled companies. On October 4, 2007 a DaimlerChrysler Extraordinary Shareholders' Meeting approved the renaming of the company. From October 5, 2007, the company has been titled Daimler AG. The U.S. company adopted the name Chrysler LLC
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
when the sale completed on August 3, 2007.
Daimler produces cars and trucks under the brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
s of Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
, Maybach
Maybach
Maybach-Motorenbau GmbH is a German luxury car manufacturer. It was founded in 1909 by Wilhelm Maybach and his son. The company was originally a subsidiary of Luftschiffbau Zeppelin GmbH and was itself known as Luftfahrzeug-Motorenbau GmbH until 1912.Today, the ultra-luxury car brand is owned by...
, Smart
Smart (automobile)
Smart is an automotive branch of Daimler AG. Smart is a German manufacturer of microcars produced in Hambach, France, and Böblingen, Germany...
, Freightliner
Freightliner LLC
Freightliner Trucks is an American manufacturer of heavy duty trucks, chassis and semi-trailer trucks in the United States. The company was founded as Freightliner Inc in 1942 and is now a division of Daimler Trucks North America, a subsidiary of the German Daimler AG...
and many others.
History
Daimler AG is a German manufacturer of automobiles, motor vehicles, and engines, which dates back more than a century.An Agreement of Mutual Interest was signed on May 1, 1924 between Benz & Cie (founded 1883) of Karl Benz
Karl Benz
Karl Friedrich Benz, was a German engine designer and car engineer, generally regarded as the inventor of the gasoline-powered car, and together with Bertha Benz pioneering founder of the automobile manufacturer Mercedes-Benz...
and Daimler Motoren Gesellschaft
Daimler Motoren Gesellschaft
Daimler-Motoren-Gesellschaft was a German engine and later automobile manufacturer, in operation from 1890 until 1926. Founded by Gottlieb Daimler and Wilhelm Maybach, it was based first in Cannstatt...
(founded 1890) of Gottlieb Daimler
Gottlieb Daimler
Gottlieb Daimler was an engineer, industrial designer and industrialist born in Schorndorf , in what is now Germany. He was a pioneer of internal-combustion engines and automobile development...
and Wilhelm Maybach
Wilhelm Maybach
Wilhelm Maybach was an early German engine designer and industrialist. During the 1890s he was hailed in France, then the world centre for car production, as the "King of constructors"....
.
Both companies continued to manufacture their separate automobile and internal combustion engine brands until, on June 28, 1926, when Benz & Cie. and Daimler Motoren Gesellschaft AG formally merged—becoming Daimler-Benz
Daimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...
AG
Aktiengesellschaft
Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e. owned by shareholders, and may be traded on a stock market. The term is used in Germany, Austria and Switzerland...
—and agreed that thereafter, all of the factories would use the brand name of Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
on their automobiles.
In 2007, when the Chrysler group was sold off to Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
(see below), the name of the parent company was changed to simply "Daimler AG".
Timeline of Daimler AG
Benz & Company, 1883–1926Daimler Motoren Gesellschaft AG
Daimler Motoren Gesellschaft
Daimler-Motoren-Gesellschaft was a German engine and later automobile manufacturer, in operation from 1890 until 1926. Founded by Gottlieb Daimler and Wilhelm Maybach, it was based first in Cannstatt...
, 1890–1926
Daimler-Benz AG
Daimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...
, 1926–1998
DaimlerChrysler AG, 1998–2007
Daimler AG, 2007–present
Merger with Chrysler
In 1998 Daimler-BenzDaimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...
AG "merged" with the American automobile manufacturer Chrysler Corporation
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
in an exchange of shares, and formed DaimlerChrysler AG. The terms of the merger allowed Daimler-Benz
Daimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...
's non-automotive businesses such as Daimler-Benz InterServices AG (Debis) (created in 1989 to handle data processing, financial and insurance services, and real estate management for the Daimler group) to continue to pursue their respective strategies of expansion. Debis reported revenues of $ 8.6 bn (DM 15.5 bn) in 1997.
A troubled relationship
The merger was contentious with investors launching lawsuits over whether the transaction was the 'merger of equals' that senior management claimed or actually amounted to a Daimler-Benz takeover of Chrysler. A class actionClass action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
investor lawsuit was settled in August 2003 for US$300 million while a suit by billionaire investor activist Kirk Kerkorian
Kirk Kerkorian
Kerkor "Kirk" Kerkorian is an American businessman who is the president/CEO of Tracinda Corporation, his private holding company based in Beverly Hills, California. Kerkorian is known as one of the important figures in shaping Las Vegas and, with architect Martin Stern, Jr...
was dismissed on April 7, 2005. The transaction claimed the job of its architect, Chairman Jürgen E. Schrempp
Jürgen E. Schrempp
Jürgen Erich Schrempp was until December 31, 2005, the CEO of DaimlerChrysler, a German-American car and truck manufacturer. Following a decision of the board taken on July 28, 2005, he was succeeded on January 1, 2006, by Chrysler frontman Dieter Zetsche...
, who resigned at the end of 2005 in response to the fall of the company's share price following the transaction. The merger was also the subject of a book Taken for a Ride: How Daimler-Benz Drove Off With Chrysler, (2000) by Bill Vlasic and Bradley A. Stertz.
Another issue of contention is whether the merger delivered promised synergies and successfully integrated the two businesses. As late as 2002, DaimlerChrysler appeared to run two independent product lines. Later that year, the company launched products that appear to integrate elements from both sides of the company, including the Chrysler Crossfire
Chrysler Crossfire
The Chrysler Crossfire is a rear-wheel drive sports car marketed by Chrysler as both coupé and roadster and was built for Chrysler by Karmann of Germany.-Design:...
, which was based on the Mercedes SLK platform and utilized Mercedes's 3.2L V6, and the Dodge Sprinter/Freightliner Sprinter, a re-badged Mercedes-Benz Sprinter
Mercedes-Benz Sprinter
The Mercedes-Benz Sprinter is a light and heavy commercial vehicle, built by Daimler AG of Stuttgart, Germany as a van, chassis cab and minibus, and sold as a Mercedes model, except in the U.S. where it is built from complete knock down kits and was sold by Freightliner until 2010 when Mercedes...
van. The fourth-generation Jeep Grand Cherokee
Jeep Grand Cherokee
The Jeep Grand Cherokee is a Mid-size SUV produced by the Jeep division of Chrysler. While some other SUVs were manufactured with body on frame construction, the Jeep Grand Cherokee has always used a unibody chassis.- Development :...
is based on the Mercedes-Benz M-Class
Mercedes-Benz M-Class
The Mercedes-Benz M-Class is a luxury mid-size sport utility vehicle , first offered in 1997 as a 1998 model, and built by the German automaker Mercedes-Benz. Gradually, the M-Class became a sales success in the United States and Mexico. In terms of size, it is slotted in between the smaller...
despite the fact it had been nearly four years after the Daimler/Chrysler split.
Sale of Chrysler
Chrysler had suffered a series of setbacks in recent years, culminating in DaimlerChrysler's agreement to sell the unit to Cerberus Capital ManagementCerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
in May 2007 for US$6 billion. Through most of its history, Chrysler has been the third largest of the "Big 3" U.S. automakers, but in January 2007, DaimlerChrysler, excluding its luxury Mercedes and Maybach lines, also outsold traditionally second place Ford, though behind General Motors and Toyota.
Chrysler reported losses of US$1.5 billion in 2006. It then announced plans to lay off 13,000 employees in mid-February 2007, close a major assembly plant and reduce production at other plants in order to restore profitability by 2008.
DaimlerChrysler had reportedly approached other carmakers and investment groups to sell Chrysler in early 2007. General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
was reported to be a suitor while Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
, the Renault
Renault
Renault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
-Nissan auto alliance, and Hyundai Motor Company
Hyundai Motor Company
Hyundai Motor Company is a Korean multinational automaker based in Seoul, South Korea which, along with Kia, comprises the Hyundai Kia Automotive Group, the world's fourth largest automaker as of 2009. As of 2011, it is the world's fastest growing automaker for two years running...
had said that they weren't interested in buying the company.
On August 3, 2007, DaimlerChrysler completed the sale of Chrysler Group to Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
. The original agreement stated that Cerberus would take an 80.1 percent stake in the new company, Chrysler Holding LLC. DaimlerChrysler changed its name to Daimler AG and retained the remaining 19.9% stake in the separated Chrysler.
The terms saw Daimler pay Cerberus US$650 million to take Chrysler and associated liabilities off its hands. Of the US$7.4 billion purchase price, Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
will invest US$5 billion in Chrysler Holdings and US$1.05 billion in Chrysler’s financial unit. The de-merged Daimler AG received US$1.35 billion directly from Cerberus but directly invested US$2 billion in Chrysler itself.
Since Chrysler's 2009 bankruptcy filing in the United States
Chrysler Chapter 11 reorganization
Chrysler LLC and twenty-four of its affiliated subsidiaries filed a consolidated petition for bankruptcy on April 30, 2009, with the federal bankruptcy court in New York...
, Chrysler has been controlled by Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
automaker Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
, which unlike Daimler plans to integrate Chrysler's products into the Fiat portfolio, most notably Lancia
Lancia
Lancia Automobiles S.p.A. is an Italian automobile manufacturer founded in 1906 by Vincenzo Lancia and which became part of the Fiat Group in 1969. The company has a long history of producing distinctive cars and also has a strong rally heritage. Some modern Lancias are seen as presenting a more...
and Chrysler's namesake brand
Chrysler (division)
Chrysler is the flagship brand of Chrysler Group LLC, named after founder Walter P. Chrysler.-Overview:The Chrysler brand was originally a premium luxury position competing with Cadillac and Lincoln, owned respectively by Chrysler Group's Detroit rivals, General Motors and Ford Motor Company...
.
Renault-Nissan and Daimler Alliance
On April 7, 2010 RenaultRenault
Renault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
-Nissan executive, Carlos Ghosn
Carlos Ghosn
Carlos Ghosn, KBE , born 9 March 1954, is a Brazilian-Lebanese-French businessman who is currently the Chairman and CEO of Yokohama, Japan-based Nissan and holds the same positions at Paris-based Renault, which together produce more than one in 10 cars worldwide...
and Dr. Dieter Zetsche
Dieter Zetsche
Dieter Zetsche is a German businessman and the Chairman of Daimler AG and Head of Mercedes-Benz Cars since 2006 as well as member of the company's Board of Management since 1998....
announced a partnership between the three companies in a joint press conference.
Management
Dr. Dieter ZetscheDieter Zetsche
Dieter Zetsche is a German businessman and the Chairman of Daimler AG and Head of Mercedes-Benz Cars since 2006 as well as member of the company's Board of Management since 1998....
has been the Chairman of Daimler and Head of Mercedes-Benz Cars since January 1, 2006 as well as member of Board of Management since 1998. He was former President and CEO of the Chrysler, LLC
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
(previously owned by Daimler AG), he may be best known in the United States as Dr. Z from a Chrysler advertising campaign called "Ask Dr. Z".
Current members of the Board of Management of Daimler AG are:
- Dr. Dieter Zetsche: Chairman of the Board as well as Head of Mercedes-Benz Cars.
- Dr. Wolfgang Bernhard: Head of Mercedes-Benz Cars Procurement and Production.
- Wilfried Porth: Head of Human Resources and Labor Relations.
- Andreas Renschler: Head of Daimler Trucks.
- Bodo Uebber: Head of Finance and Controlling as well as Financial Services.
- Dr. Thomas Weber: Head of Group Research and Mercedes-Benz Cars Development.
Current members of the Supervisory Board of Daimler AG are: Heinrich Flegel, Juergen Hambrecht, Thomas Klebe, Erich Klemm, Arnaud Lagardère
Arnaud Lagardère
Arnaud Lagardère, born in Boulogne-Billancourt, France, on March 18, 1961, is the son of Jean-Luc Lagardère, the former chairman of Matra and Hachette...
, Jürgen Langer, Helmut Lense, Sari Baldauf
Sari Baldauf
Sari Maritta Baldauf is the former head of Nokia Networks.Baldauf graduated as a Master of Economics from Helsinki School of Economics in 1979 and joined Nokia in 1983. She was selected into Nokia's Group Executive Board in 1994.Baldauf was selected as the most influential female executive in the...
, William Owens, Ansgar Osseforth, Valter Sanches, Manfred Schneider
Manfred Schneider
Manfred Schneider is a German rower, who competed for the SC Dynamo Berlin/ Sportvereinigung Dynamo. He won the medals at the international rowing competitions.- References :...
, Stefan Schwaab, Bernhard Walter, Lynton Wilson, Mark Wössner, Manfred Bischoff, Clemens Börsig and Uwe Werner. Dr Manfred Bischoff serves as the Chairman of the Supervisory Board of Daimler AG and Erich Klemm as Vice-Chairman.
Shareholders Structure
by Ownership- Aabar Investments (United Arab EmiratesUnited Arab EmiratesThe United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
): 9.0% - Kuwait Investment AuthorityKuwait Investment AuthorityThe Kuwait Investment Authority is Kuwait's sovereign wealth fund , managing body, specializing in local and foreign investment...
(KuwaitKuwaitThe State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
): 6.9% - RenaultRenaultRenault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
(FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
): 1.55% - Nissan (JapanJapanJapan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
): 1.55% - Institutional investorInstitutional investorInstitutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
s: 61.9% - Private Investors: 19.1%
by Region
- 28.2% Germany
- 36.9% Other Europe
- 15.4% United States
- 9.0% United Arab Emirates
- 6.9% Kuwait
- 3.6% Others
Brands
Daimler sells automobiles under the following marques worldwide:- Mercedes-Benz Cars
- MaybachMaybachMaybach-Motorenbau GmbH is a German luxury car manufacturer. It was founded in 1909 by Wilhelm Maybach and his son. The company was originally a subsidiary of Luftschiffbau Zeppelin GmbH and was itself known as Luftfahrzeug-Motorenbau GmbH until 1912.Today, the ultra-luxury car brand is owned by...
- Mercedes-BenzMercedes-BenzMercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
- SmartSmart (automobile)Smart is an automotive branch of Daimler AG. Smart is a German manufacturer of microcars produced in Hambach, France, and Böblingen, Germany...
- Mercedes-AMGMercedes-AMGMercedes-AMG GmbH, commonly known as AMG, is a subsidiary of the Mercedes-Benz car company specializing in high-performance luxury cars....
- Maybach
- Daimler Trucks
- Commercial vehicles
- FreightlinerFreightliner TrucksFreightliner Trucks is an American manufacturer of heavy duty trucks, chassis and semi-trailer trucks in the United States. The company was founded as Freightliner Inc in 1942 and is now a division of Daimler Trucks North America, a subsidiary of the German Daimler AG...
- Mercedes-Benz (truck group)
- Mitsubishi FusoMitsubishi Fuso Truck and Bus CorporationThe Mitsubishi Fuso Truck and Bus Corporation is a German-owned, Japan-based manufacturer of trucks and buses. It is headquartered in Kawasaki-shi, Kanagawa, Japan. This company is one of the World's largest truck manufacturers...
- Thomas Built BusesThomas Built BusesThomas Built Buses, Inc. is a bus manufacturer based in High Point, North Carolina, United States and a subsidiary of the German Daimler AG. Thomas produces school buses, activity buses/MFSAB , and commercial buses; both small and full-size buses are produced.Thomas traces its roots to 1916, when...
- Sterling TrucksSterling TrucksSterling Trucks, a manufacturer of heavy duty trucks, was a subsidiary of Daimler Trucks North America, based in Portland, Oregon, United States, a member of the Daimler AG Truck Group. It was originally the heavy truck division of Ford Motor Company, but was purchased and rebranded in 1997....
- operations wind down in 2010, but will continue to support authorized dealers and vehicle owners - Western StarWestern Star TrucksWestern Star Trucks is a Fort Mill, South Carolina, United States based manufacturer of Class 8 commercial trucks and a subsidiary of the German Daimler AG.-History:...
- BharatBenzBharatBenzBharatBenz is a brand of trucks manufactured and marketed in India by Daimler India Commercial Vehicles, Private Limited , a wholly owned subsidiary of Daimler AG. It produces trucks in the 6 - 49 ton range.-History:...
- Freightliner
- Components
- Alliance Truck PartsAlliance Truck PartsAlliance Truck Parts is an American private label brand that offers heavy-duty truck replacement parts and accessories. The company was founded as Alliance Brand Parts in 1998 and is a division of Daimler Trucks North America, a subsidiary of the German Daimler AG. The change to Alliance Truck...
- Detroit DieselDetroit DieselAs a corporation, Daimler Trucks North America has decided to rename the company "DETROIT".Detroit Diesel Corporation is an American-based diesel engine producer headquartered in Detroit, Michigan, USA...
- Mercedes-Benz
- Mitsubishi Fuso
- Alliance Truck Parts
- Commercial vehicles
- Daimler Buses
- Mercedes-Benz busesMercedes-Benz busesMercedes-Benz has been making buses since 1895 in Mannheim in Germany. Since 1995, the brand of Mercedes-Benz buses and coaches is under the umbrella of EvoBus GmbH, belonging 100 % to the Daimler AG.-Heritage:...
- Orion Bus IndustriesOrion Bus IndustriesOrion International, previously Orion Bus Industries and Ontario Bus Industries in Canada and Bus Industries of America in the United States, is a bus manufacturer based in Mississauga, Ontario, Canada and established by the Government of Ontario in 1975...
- SetraSetraSetra is a Neu-Ulm, Germany-based manufacturer of commercial buses and touring coaches, and recently a subsidiary of Daimler AG.The name "Setra" comes from "Selbsttragend"...
- Mercedes-Benz buses
- Mercedes-Benz Vans
- Mercedes-Benz (vans group)
- Daimler Financial ServicesDaimler Financial ServicesDaimler Financial Services is the global financial services provider of Daimler AG, providing financing, leasing, insurance, fleet management, insurance services, banking and credit/debit cards services in more than 40 countries....
- Mercedes-Benz Bank
- Mercedes-Benz Financial
- Daimler Truck Financial
- Others
- Mercedes-Benz HighPerformanceEngines (Builds engines for Formula 1 Racing)
Holdings
Daimler currently holds interests in the following companies:- 85.0% Mitsubishi Fuso Truck and Bus CorporationMitsubishi Fuso Truck and Bus CorporationThe Mitsubishi Fuso Truck and Bus Corporation is a German-owned, Japan-based manufacturer of trucks and buses. It is headquartered in Kawasaki-shi, Kanagawa, Japan. This company is one of the World's largest truck manufacturers...
of Japan - 50.1% Automotive Fuel Cell CooperationAutomotive Fuel Cell CooperationAutomotive Fuel Cell Cooperation is a Vancouver, British Columbia, Canada, based automotive fuel cell technology company. Founded in November 2007, the privately-held company was created to allow for further expansion of fuel cell technology....
of Canada - 11% McLaren GroupMcLaren GroupThe McLaren Group, based at the McLaren Technology Centre in Woking, Surrey, England, is a group of companies created by Ron Dennis, described by the International Herald Tribune as "a small conglomerate"...
of United Kingdom (McLaren GroupMcLaren GroupThe McLaren Group, based at the McLaren Technology Centre in Woking, Surrey, England, is a group of companies created by Ron Dennis, described by the International Herald Tribune as "a small conglomerate"...
acquiring back stake gradually, to be completed early 2011) - 22.4% European Aeronautic Defence and Space Company (EADSEADSThe European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...
) - the parent company of AirbusAirbusAirbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
of Europe - 50% TognumTognumTognum AG is the name of a German industrial concern, formed when private equity fund EQT IV acquired several divisions of DaimlerChrysler. All units are to assume the corporate brand, but will otherwise operate independently....
of Germany - 11.0% KAMAZKamazKAMAZ is a Russian truck manufacturer located in Naberezhnye Chelny, Tatarstan, Russian Federation. KAMAZ opened their doors in 1976...
of Russia - 10.0% Tesla MotorsTesla MotorsTesla Motors, Inc. is a Silicon Valley-based company that designs, manufactures and sells electric cars and electric vehicle powertrain components. It was the only automaker building and selling a zero-emission sports car, the Tesla Roadster, in serial production...
of United States
Partners
Daimler has built 1,000 all-electric versions of its Smart FortwoSmart ED
The Smart fortwo electric drive is a battery electric vehicle version of the Smart Fortwo micro car. This electric car was formerly known as Smart fortwo EV...
using Tesla's battery technology.
Daimler works with China's Beiqi Foton (a subsidiary of BAIC) to build Auman trucks, and with BYD to develop EV technology.
Bribery and corruption
On April 1, 2010, Daimler AG's German and Russian subsidiaries each plead guilty to two counts of briberyBribery
Bribery, a form of corruption, is an act implying money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or...
charges brought by the U.S. Justice Department and the U.S. Securities and Exchange Commission. Daimler itself will pay US$185 million as a settlement, but the company and its Chinese subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
remain subject to a two-year deferred prosecution agreement
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
which requires further cooperation with regulators, adherence to internal controls and meeting other terms before they are required to return to the court room. Daimler will face harsher penalties if the company fails to meet the terms of the agreement during the two-year period.
Additionally, Louis J. Freeh, a former director of the Federal Bureau of Investigation
Federal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...
, will serve as an independent monitor to oversee Daimler’s compliance with anti-bribery laws.
U.S. prosecutors accused key executives of Daimler, Daimler subsidiaries, and Daimler affiliates of illegally giving foreign officials money and gifts between 1998 and 2008 to secure government contracts around the world. The investigation for the case revealed that Daimler improperly paid some $56 million in bribes related to more than 200 transactions in at least 22 countries (including China, Russia, Turkey, Hungary, Greece, Latvia, Serbia and Montenegro, Egypt and Nigeria, among other places) that, in return, awarded the company $1.9 billion in revenue and at least $91.4 million in illegal profits.
The SEC case was sparked in 2004 after David Bazzetta, a former auditor at then DaimlerChrysler Corp, filed a whistleblower
Whistleblower
A whistleblower is a person who tells the public or someone in authority about alleged dishonest or illegal activities occurring in a government department, a public or private organization, or a company...
complaint after he was fired for raising questions about bank accounts controlled by Mercedes-Benz units in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
. Bazzetta alleged that he learned in a July 2001 corporate audit executive committee meeting in Stuttgart
Stuttgart
Stuttgart is the capital of the state of Baden-Württemberg in southern Germany. The sixth-largest city in Germany, Stuttgart has a population of 600,038 while the metropolitan area has a population of 5.3 million ....
that business units "continued to maintain secret bank accounts to bribe foreign government officials," though the company knew the practice violated U.S. laws.
In another attempt to silence Bazzetta, Daimler later offered to settle his termination of employment suit out of court and he eventually accepted a settlement. But Daimler's strategy with Bazzetta proved to be a failure as the U.S. criminal investigation for violating anti-bribery laws was already underway in what is one of the most wide-ranging cases brought against a foreign corporation.
According to the charges, the bribes were frequently made by over-invoicing customers and paying the excess back to top government officials or their proxies. The bribes also took the form of luxury European vacations, armored Mercedes vehicles for high-ranking government officials and a birthday gift to a senior Turkmenistan
Turkmenistan
Turkmenistan , formerly also known as Turkmenia is one of the Turkic states in Central Asia. Until 1991, it was a constituent republic of the Soviet Union, the Turkmen Soviet Socialist Republic . Turkmenistan is one of the six independent Turkic states...
official including a golden box and 10,000 copies of the official's personal manifesto
Manifesto
A manifesto is a public declaration of principles and intentions, often political in nature. Manifestos relating to religious belief are generally referred to as creeds. Manifestos may also be life stance-related.-Etymology:...
translated into German.
Investigators also found that the firm violated the terms of the United Nations' Oil-for-Food Programme
Oil-for-Food Programme
The Oil-for-Food Programme , established by the United Nations in 1995 was established with the stated intent to allow Iraq to sell oil on the world market in exchange for food, medicine, and other humanitarian needs for ordinary Iraqi citizens without allowing Iraq to boost its military...
with Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
by giving kickbacks worth 10% of the contract values to officials within the Iraqi government, then led by Saddam Hussein
Saddam Hussein
Saddam Hussein Abd al-Majid al-Tikriti was the fifth President of Iraq, serving in this capacity from 16 July 1979 until 9 April 2003...
. The SEC said the company made more than $4 million from the sale of vehicles and spare parts in the corrupt Oil-for-Food deals.
U.S. prosecutors further alleged that some bribes were paid through shell companies based in the U.S. "In some cases Daimler wired these improper payments to U.S. bank accounts or to the foreign bank accounts of U.S. shell companies in order to transmit the bribe," the court papers said.
Prosecutors said that Daimler engaged in a "long-standing practice" of paying bribes, due in part to a corporate culture that encouraged the practice.
"Using offshore bank
Offshore bank
An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. These advantages typically include:...
accounts, third-party agents and deceptive pricing practices, these companies [Daimler AG, its subsidiaries and affiliates] saw foreign bribery as a way of doing business," said Mythili Raman, a principal deputy in the Justice Department’s criminal division.
"It is no exaggeration to describe corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
and bribe-paying at Daimler as a standard business practice," Robert Khuzami
Robert Khuzami
Robert S. Khuzami is currently the director of the Division of Enforcement of the U.S. Securities and Exchange Commission. He is a former United States federal prosecutor and general counsel of Deutsche Bank AG....
, director of the SEC's enforcement division, said in a statement.
"We have learned a lot from past experience," Dieter Zetsche, chairman of Daimler's board, said in a statement.
As per the agreement with prosecutors, the two Daimler subsidiaries admitted to knowingly violating the Foreign Corrupt Practices Act
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 is a United States federal law known primarily for two of its main provisions, one that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another concerning bribery of foreign officials.- Provisions and scope...
, which bars companies and their officials from paying bribes to foreign officials to win business. The Foreign Corrupt Practices Act applies to any company that lists its shares on U.S. stock exchanges. Daimler AG was listed with the symbol "DAI" on the NYSE, giving the Justice Department jurisdiction over the German car maker's payments in countries around the globe.
Judge Richard J. Leon
Richard J. Leon
Richard J. Leon is an American lawyer and current federal judge. He has served as a judge of the United States District Court for the District of Columbia since 2002.-Early life and education:Leon was born in South Natick, Massachusetts...
of United States District Court in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, approved the plea agreement and settlement, calling it a "just resolution."
The primary case is USA v. Daimler AG, United States District Court for the District of Columbia
United States District Court for the District of Columbia
The United States District Court for the District of Columbia is a federal district court. Appeals from the District are taken to the United States Court of Appeals for the District of Columbia Circuit The United States District Court for the District of Columbia (in case citations, D.D.C.) is a...
, No. 10-00063.
DaimlerChrysler
DaimlerChrysler
Daimler AG is a German car corporation. By unit sales, it is the thirteenth-largest car manufacturer and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm...
is also known for assisting in translation to German language in 2003 of the first part of the Ruhnama
Ruhnama
Ruhnama , is a book written by Saparmurat Niyazov, late President for Life of Turkmenistan, combining spiritual/moral guidance, autobiography and revisionist history, much of it is of dubious or disputed factuality and accuracy. The text includes many stories and poems, including those by Sufi poet...
book written by Turkmenbashi, the notorious former dictator of Turkmenistan . Allegedly, this helped the company to gain contracts in Turkmenistan.
Biofuel research
Daimler AG is involved in a joint project with Archer Daniels Midland Company and Bayer CropScience to develop jatrophaJatropha
Jatropha is a genus of approximately 175 succulent plants, shrubs and trees , from the family Euphorbiaceae. The name is derived from the Greek words ἰατρός , meaning "physician," and τροφή , meaning "nutrition," hence the common name physic nut. Mature plants produce separate male and female...
as a biofuel
Biofuel
Biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...
.
Transport electrification
Carmaker Daimler AG and the utility company RWE AGRWE
RWE AG , is a German electric power and natural gas public utility company based in Essen. Through its various subsidiaries, the energy company contributes electricity and gas to more than 20 million electricity customers and 10 million gas customers, principally in Europe...
are going to begin a joint electric car and charging station
Charging station
An electric vehicle charging station, also called EV charging station, electric recharging point, charging point and EVSE , is an element in an infrastructure that supplies electric energy for the recharging of electric vehicles, plug-in hybrid electric-gasoline vehicles) or semi-static and mobile...
test project in the German capital, Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
, called "E-Mobility Berlin".
Mercedes-Benz is launching its first passenger car model equipped with a hybrid drive system in summer 2009, the Mercedes-Benz S 400 HYBRID.
Daimler Trucks is the world market leader in hybrid systems. With its “Shaping Future Transportation” initiative, Daimler is pursuing a clear-cut objective for trucks and buses. The Mitsubishi Fuso “Aero Star Eco Hybrid” is now setting new standards in practical trials in Japan.
Formula 1
On November 16, 2009 Daimler purchased a 75.1% stake in Brawn GPBrawn GP
Brawn GP Formula One Team, the trading name of Brawn GP Limited, was a Formula One motor racing team and constructor, created by a management buyout of Honda Racing F1 Team. It only competed in the 2009 Formula One World Championship, with drivers Jenson Button and Rubens Barrichello. The team...
. The company was rebranded as Mercedes GP
Mercedes GP
Mercedes GP Petronas Formula One Team, the trading name of Mercedes-Benz Grand Prix Limited, is a British-based Formula One racing team and constructor, owned by Mercedes-Benz and racing under a German licence since the 2010 season....
. Ross Brawn will remain team principal and the team will be based in Brackley, UK. However the purchase of Brawn meant that Daimler will sell its 40% stake in McLaren back in phases which will end in 2011. Mercedes will continue to provide sponsorship and engines to McLaren until 2015, when McLaren will probably have to find an engine supplier or make its own engines. Mercedes owns 45.1% of the new company with 30% for Aabar Investments and 24.9% for Ross Brawn. The racing team has signed the former champion Michael Schumacher.