Decrease in RD Expenses per Production Unit. Another positive aspect of the merger is that both of the companies can combine their efforts in researching and developing new products. Before the merger each of the companies had to conduct research for itself and these costs were spread on per unit basis among all products. Now these costs are spread on a significantly larger quantity of products, which allows decreasing costs of the research and development per every production unit. In addition, intellectual powers of both companies will now work for one huge company DaimlerChrysler.
This factor will bring new, combined ideas into the new company. Facts On April 17, 2000, DaimlerChrysler announced a new Virtual Reality Center in Sindelfingen, Germany. The Company estimates the new facility will reduce costs of making Mercedes-Benz prototype models by up to twenty percent a shorten product development times while improving quality.