The DaimlerChrysler-Mitsubishi Alliance, Any Lessons from the Ford-Mazda Case?

Aiming for new global synergies, in March 2000 it was agreed that DaimlerChrysler would acquire 34% of Mitsubishi Motors. Since then, however, each firm has been confronted by an unexpected array of pressing challenges. The strategic tie-up is now being looked to for previously unanticipated contributions both to Mitsubishi’s recovery in Japan, and the resuscitation of Chrysler in the U.S. The presentation will address what can realistically be expected from the tie-up, and taking a step back from this specific case, consider the general question of the viability of strategic alliances as a means for pursuing sustained competitive advantage? Attention will be paid to the present corporate capabilities of the firms, the 30-year history of Chrysler-Mitsubishi cooperation, and comparisons with other relevant cases. In particular, the Ford-Mazda tie-up will be examined for insights into the set of issues facing DaimlerChrysler and Mitsubishi as they move forward.