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Finance & Accounting
Pages 4 (1004 words)
The growth model that Daimler uses is to form strategic alliances with like minded automakers. This enables the company to use the facilities of its partners, while entering into a new market.
In 2010, Daimler managed to form an alliance with Nissan and Renault (Reed, 2013). Before this alliance, it is important to denote that Daimler and Chrysler had a merger with Chrysler. But because of cultural differences, the merger ended. Under this alliance, Renault and Nissan allowed Daimler to use their channels of distribution, and production units. This is in countries such as Slovenia and Japan. Daimler on the other hand allowed Nissan and Renault to use their 6-4 cylinder technology to produce diesel engines for their productions. In 2012, Nissan allowed Daimler to use its production plans in Tennessee to manufacture their Mercedes brand. This was the first time that Daimler managed to produce vehicles at a North American trade zone. Another deal that occurred this year was the incorporation of Mitsubishi, into an alliance with Nissan-Renault-Daimler. Under this agreement, the companies agreed to share factories and production units for purposes of creating a huge multi-brand international automotive group. The purpose of creating this automotive group is to manage to compete against automotive giants such as Toyota, and Volkswagen. In this agreement, the three companies are to help Mitsubishi to develop electric cars at their North American plants, in exchange of using the distribution channels, and production units of Mitsubishi in Japan, and the emerging markets of Asia (Pearson, 2013). ...
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