Crisler Corporation. Senior thesis

As the ratios reveals new corporation by some of the ratios overcome industry average. Valuation ratios show us DaimlerChrysler is in better standing in comparison with the industry. Dividends payout ratio proves that the company pays more dividends than average, but I think it is not what investors expected and this lead to a drop in price of the stock.

Financial strength of the company in terms of LT Debt to Equity and

Total Debt to Equity ratios is almost twice stronger than the average in the industry. Low return on Equity ratio might be explained by the fact that the company keeps a lot of cash for the purpose of new investment. In general, the company shows strong figures and this view is supported by

Standards & Poor’s specialists’ statement. “DaimlerChrysler has a strong balance sheet, with significant cash reserves available for the next industry downturn, as well as for strategic investments and alliances.”[iii]

Government Concerned that...

One of the problems that can arise for the economies of the US and

Germany is downsizing of some of the departments. For example, one company does not need two raw material purchase departments. In this case, the new company will need both of its departments because of different languages.

The new company will provide more job opportunities for both countries.

There are two reasons why this might be so:

1) Expansion plans will require more people to be hired for the new company

2) Because of different languages, much of the documentation has to be translated back and forth.

This figure shows expansion so far:

Since both companies are introduced to new markets and new opportunities, they will have to increase their production capacities in order to meet demand in the new market. This factor will require more labor ( as can be seen from the above graph), so more people will be hired. Government does its best to support companies that can provide more employment opportunities for the population, because this contributes to the solution to the unemployment problem. Simultaneously, with the increase of labor involved in the production process, there will be an increase in gross domestic product.

Environmental 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.[iv]

“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.[v]

Conclusion