According to Landler (2005), Daimler-Benz and Chrysler Corporation, the leading giants of the world’s foremost car producers, determined to merge their companies in May, 1998, the process was announced as a “merger of equals.” This merger show the way to the development of the giant car company, which has been positioned in third place in the world based upon the terms of the gained revenues, market capitalization and annual turnovers, and placed in the fifth place for the manufacturing process according which in the number of production units such as passenger-cars and commercial vehicles which has been sold collectively. The policy available into that plan of the merger is to permit the two companies to safeguard their current cultures. According to Business management (2010), the previous Chrysler Company got the independence to produce mass-market cars and trucks, while the Daimler’s sustained to manufacture comfort Mercedes Benz. (Landler, 2005) also reported whilst this Scenario, the plan of the merger would tender new products, sectors, brands, will tag on a great deal more to the automobile manufacturing industry. According to Business management (2010), in spite of considerable short and medium term predicted joint ventures, DaimlerChrysler has only been redeploying for unenthusiastic profits subsequent to the agreement. In 2001, it faced the $5.8 billion loss which was the major record of loss in the German industry. Until that time, the joint market worth of the merged unit had abridged to regarding part the cost of their split valuations in 1998. Landler (2005) also reported that Benz’s business rivals such as BMW, Renault and Nissan, on the other hand, sustained to perk up in 2004 not considering of the equivalent difficult setting. Though, merger between the DaimlerChrysler has been a fiscal smash to smithereens for the corporation; its market price has decreased severely to 40 percent from $84 billion to $47 billion from the time when the merger and is far-flung as of satisfying Daimler’s prediction that the merged unit may develop into the world’s most money-making automaker.