Daimler AG

Daimler AG

Company Snapshot:

DaimlerAG, headquartered in Stuttgart, Germany, produces cars, truck and vans as well as commercial vehicles and aerospace products. The company, which reported revenues of $177.26 billion in 2005, employs over 384,000 people. Trucks and SUVs account for 71 percent of the company's sales.

Basic information

Ownership status:

Publicly traded

Number of employees worldwide:

360,385

Chief executive officer:

Thomas Eichelmann

Website:

http://daimler.com

Tel:

+49 (0)69 211 - 0

Fax:

+49 (0)69 211 - 1 20 05

Corporate accountability

Brief company history:

Daimler AG (formerly DaimlerChrysler AG) is a German car corporation and the world's thirteenth largest car manufacturer. As well as automobiles, Daimler manufactures trucks and provides financial services through its Daimler Financial Services arm. The company also owns a major stake in aerospace group EADS, McLaren Group, Mitsubishi Fuso Truck and Bus Corporation and Chrysler LLC.

DaimlerChrysler was founded in 1998 when Mercedes-Benz manufacturer Daimler-Benz (1926-1998) of Stuttgart, Germany bought the US-based Chrysler Corporation. The deal created a new entity, DaimlerChrysler. However, the buyout failed to produce the trans-Atlantic automotive powerhouse dealmakers had hoped for, and DaimlerChrysler announced on 14 May 2007 that it would sell Chrysler to Cerberus Capital Management of New York, a private equity firm that specializes in restructuring troubled companies, effectively unwinding the original transaction. On October 4, 2007 a DaimlerChrysler Extraordinary Shareholders' Meeting approved the renaming of the company. From October 5, 2007, the company has been titled Daimler AG. The US company adopted the name Chrysler LLC when the sale completed on 3 August 2007.

Daimler produces cars and trucks under the brands of Mercedes-Benz, Maybach, Smart, Freightliner and many others. Wikipedia, 10/30/2007

Corporate accountability:

Chrysler LLC received a perfect score on the Human Rights Campaign 2008 Corporate Equality Index which rates large corporations on policies that affect their gay, lesbian, bisexual and transgender employees, consumers and investors. The HRC Corporate Equality Index rates companies on a scale of 0 to 100 percent. Human Rights Campaign, 09/17/2007

DaimlerChrysler received a "B-" grade on the 2007 NAACP Economic Reciprocity Initiative report. The grade reflects a measurement of corporate America's commitment to the African American citizenry and other people of color. Companies were surveyed for their activity in employment, vendor development and contracting, advertising and marketing, dealerships and philanthropy. NAACP, 07/15/2007

Between 1998 and 2006, DaimlerChrysler spent $40 million on lobbying and campaign contributions. Center for Public Integrity, 04/27/2007

Lawyers representing thousands of apartheid victims at an appeal hearing in New York will revive 2002 compensation claims against foreign multinationals they accuse of aiding and abetting apartheid violence. Implicated corporations include BP, Barclays, Hewlett-Packard, Credit Suisse, Coca-Cola, DaimlerChrysler, Ford and Shell Oil. The plaintiffs and some 29 civil society groups and individuals allege that companies that supported the apartheid state violated the Sullivan code and US's constructive engagement policy designed to fight descrimination. Violations involved such activities as providing the regime with armoured vehicles for patroling townships, and creating the pass book which non-whites were required to carry to authorize their passage in otherwise white areas. Independent Online, 01/22/2006

In December 2003, the National Highway Traffic Safety Administration announced that it wanted to close loopholes in fuel emissions standards legislation. These loopholes include the classification of DaimlerChrysler AG's PT Cruiser as a light truck, which makes it subject to laxer gas-mileage rules than a car. In a letter to the NHTSA, Reginald Modlin, DaimlerChrysler's environmental and energy planning director, voiced the company’s resistance to changing legislation: "Any change may not be better, it may just be different." The Wall Street Journal speculated that these loopholes may be difficult for NHTSA to eliminate, as the auto industry contributed 10 times as much to Mr. Bush's presidential campaign in 2000 than to his Democratic opponent. Wall Street Journal, 12/22/2003

In November, 2003, Daimler agreed to pay $100,000 to be distributed equally among 10 class members for discrimination against persons with disabilities at their Kokomo Indiana plant. U.S. Equal Employment Opportunity Commission, 11/01/2003

In August 2003 Florida's public pension fund, the State Board of Administration (SBA), announced a $300 million settlement from DaimlerChrysler for non-accounting securities fraud litigation. The SBA was a Lead Plaintiff with several other public pension funds in a class action lawsuit filed against DaimlerChrysler AG, Daimler-Benz AG and two of DaimlerChrysler's top executives. The suit was initiated by the SBA and other pension funds in dispute of "merger of equals" claims made when Daimler-Benz and Chrysler combined the companies in a $36 billion deal in 1998. The SBA and other plaintiffs asserted that by positioning the deal not as an acquisition but as a "merger of equals," Daimler-Benz acted in bad faith and misrepresented the nature of the combination. In an acquisition, Chrysler stock would have yielded a premium price to shareholders. The settlement includes DaimlerChrysler's denial that it committed any legal violation. Delaware Law Weekly, 08/27/2003

In February 2003, a class action suit was filed against a DaimlerChrysler's susidiary on behalf of six black purchasers of Chrysler in the U.S. District Court in Illinois. Accusing the company of denying credit to customers in the Chicago area based on race, the suit claimed that the company repossessed vehicles of customers living in predominantly black neighborhoods without justification or proper notification. According to the claims of the suit, “Chrysler management systematically and intentionally denied low-interest vehicle financing to creditworthy blacks in two Chicago neighborhoods, based on the neighborhood in which they lived and the dealership they selected to purchase the car.” PR Newswire, 02/03/2003

In October 2001 the European Union fined DaimlerChrysler $65.5 million for violating competition rules by restricting sales of its Mercedes cars in Europe. The European Union's Competition Commissioner said that German-based DaimlerChrysler violated competition rules for years by instructing German dealers to make foreigners, but not Germans, pay a 15 percent deposit; limiting sales of cars to leasing companies in Germany and Spain, and participating in a price-fixing agreement in Belgium. Chicago Tribune, 10/11/2001

In June 2001 the Equal Employment Opportunity Commission (EEOC) filed a lawsuit claiming DaimlerChrysler violated the Americans with Disabilities Act by not hiring a disabled mechanic at its Detroit Axle Plant. Associated Press, 06/06/2001

In March 2001, Chrysler was accused of "lemon laundering" after it was disclosed that the company bought back defective vehicles and re-sold them to consumers. The advocacy group Safety Forum said that Chrysler spent over 1 billion dollars since 1993 to buy back 50,000 chronically defective vehicles, many of which were re-sold to dealers. Institute for Global Ethics, 03/26/2001

Labor:

In January of 2006, DaimlerChrysler announced layoffs of 6,000 employees to take place in March of that year, including 20 percent of general and administrative staff and 30 percent of management. Said Dieter Zetsche, Chrysler's Chairman of the Board, "Our objective in taking these actions is to create a lean, agile structure, with streamlined and stable processes that will unleash DaimlerChrysler's full potential." Brandweek, 01/24/2006

Environment and product safety:

DaimlerChrysler has been criticized for failing to warn customers about the potential threat that car passenger-safety air bags posed to children and petite women. Air bags were patented in the 1950s, but industry concern about their danger and potential liabilities kept them out of cars for decades. Air bags were introduced and marketed in the late 1980s, but nothing was initially said of their potential dangers. The National Highway Traffic Safety Administration reported that, as of May 1, 1999, air bags had killed 76 children and saved none. There is now a warning label in cars containing air bags. [www.motherjones.com/mustreads/061499.html Mother Jones, 06/14/1999]

DaimlerChrysler continued its long tradition of opposing fuel economy legislation through 2007, when it joined with other major auto manufacturers to oppose an energy bill that would require, among other changes, an increase of fuel economy standards from 25 to 35 miles per gallon by 2020. The companies continue to fight against raising fuel economy standards in the United States, despite having already agreed to meet tougher European standards which stipulate cars must achieve 40 miles to the gallon. San Francisco Chronicle, 06/13/2007

According to a report on Superfunds by nonprofit investigative journalism organization, the Center for Public Integrity, DaimlerChrysler is a 'potentially responsible party' (PRP) in 50 Superfund sites across the country. A Superfund site is defined as a toxic waste site that falls under the Environmental Protection Agency’s Superfund program, which was enacted in 1980. Under the law, companies and other parties found responsible for polluting sites are required to clean up the area or pay the costs for cleanup to the EPA. Center for Public Integrity, 04/26/2007

The Union of Concerned Scientists, a "science-based nonprofit" working on environmental and safety issues, rated DaimlerChrysler as "Public Polluter #1" in its 2007 rankings of the environmental performaces of eight major automobile manufacturers, saying the company's small pickup trucks produce more smog than any class of vehicles from any other automaker. Union of Concerned Scientists, 04/03/2007

The state of California is seeking monetary compensation for the environmental damages caused by tailpipe emissions. The State’s Attorney General filed a lawsuit against General Motors, Toyota, Ford, Honda, Chrysler, and Nissan for damaging the state’s weather, economy, and public health. Attorney General Bill Lockyer, filing the suit, stated: “Vehicle emissions are the single most rapidly growing source of the carbon emissions contributing to global warming, yet the federal government and automakers have refused to act. It is time to hold these companies responsible for their contribution to this crisis.” Consumer Guide, 09/22/2006

Environmental Defense’s report entitled “Global Warming on the Road” sheds light on the role of automobiles in augmenting the problem of global warming. Automobiles emit roughly 10 percent of global CO2 emissions from fossil fuels, the main form of greenhouse gas pollution. In 2004, CO2 emissions (MMTc), from the “Big Three”- GM, Ford, and DaimlerChrysler- were comparable to that from the nation’s 11 top electric companies. In that same year, DaimlerChrysler’s cars and light trucks emitted 51 carbon emissions (MMTc), which accounts for 16 percent of MMTc emitted by all automobile makers. Environmental Defense, 06/22/2006

Daimler AG lags far behind the other major auto manufacturers in the production of hybrid vehicles. Toyota and Honda, the companies with the most experience producing hybrid vehicles, have been joined in the market by hybrid efforts from Ford, GM and Nissan. Daimler AG, on the other hand, has no plans to produce a hybrid passenger vehicle in the United States until 2008, arguing that hybrids do not constitute a profitable venture with the current technology. Detroit Free Press, 05/26/2006

DaimlerChryser received a summary score of 43 out of 100 in a 2006 Ceres report examining companies' response to the issue of climate change. Ceres is a national network of environmental activists and investors working together to address climate change issues. While DaimlerChrysler has made incremental improvements in its fleet fuel efficiency, the company is only striving to reduce greenhouse gas emissions by 10% from 2002 to 2012. CERES, 03/01/2006

In December 2005 DaimlerChrysler reached a $95 million settlement with the Environmental Protection Agency and Department of Justice over defective emission controls on nearly 1.5 million Jeep and Dodge vehicles. State and Federal investigations raised questions over whether DaimlerChrysler violated the Clean Air Act by failing to disclose the defects. The monetary settlement clears DaimlerChrysler of these charges. AFX News Limited, 12/22/2005

The American Council for an Energy-Efficient Economy(ACEEE), a nonprofit dedicated to fostering nationwide energy efficiency, listed the Dodge Ram 1500 Pickup and the Dodge Ram SRT10 on their 2005 “Meanest Vehicles” list, a ranking of the twelve most polluting vehicles of the year. ACEEE ranks vehicles based on tailpipe emissions, fuel consumption, and the emissions of gases that cause global warming.GreenBiz, 02/15/2005

In April 2002, former supervisors at a Chrysler plant in Kokomo, Indiana were fined and sentenced to home detention for ordering the dumping of industrial oil coolant into the city's sewer system. The supervisors, who plead guilty to violations of the Clean Water Act, directed workers in April 1997 to send thousands of gallons of the coolant through bypass lines into the city sewers. AP

Financial information

Detailed financial information

Stock ticker symbol:

DAI

Total revenue:

151.6 billion (EUR)

Fiscal year:

2006

Net Income:

3.227 billion (EUR)

Fiscal year:

2006

Location

Headquarters

Deutsche Börse AG Neue Börsenstraße 1

Frankfurt am Main, BY, 60487

Germany (Deutschland)