Issues in the New Corporation

Issues in the New Corporation. Protection of the surrounding environment and conserving the natural foundations of life should be one of the main concerns of every company and every human being on the Earth. Due to lack of attention to these issues the current environment conditions of the earth have changed dramatically for the worse.

DaimlerChrysler is one of the world corporations that pays a great deal of attention to environmental issues. Its management clearly understands the importance of these issues in the long run. The following facts speak up for themselves DaimlerChrysler and the European Nature Heritage Fund Euronatur presented an upbeat review of ten years of environmental cooperation at a press conference in Berlin today.

The concerted efforts of DaimlerChrysler and Euronatur have decisively moved forward environmental protection and habitat security in important large natural landscapes, a joint statement said. www.daimlerchrysler.com On March 29, 2000, DaimlerChrysler s manufacturing facility in Toluca, Mexico, introduced to production a new wastewater recycling facility.

The recycling facility will conserve precious water resources and reduce the potential for pollution by totally recycling all of the water used in the plant. 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. www.daimlerchrysler.com 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 13 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. 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 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.