It seems to me that when Chrysler agreed that
Daimler would have more seats than Chrysler
on the new board they effectively gave
control of the new company to Daimler and it
is a company's responsibility to run a company
as they see fit and to change strategy whenever
they feel it will do some good.
Here is the link:
and part of the story:
In one corner will be Kirk Kerkorian, the
billionaire Las Vegas casino operator and the
largest shareholder of the premerger Chrysler. Mr.
Kerkorian is suing DaimlerChrysler because he
contends company officials misrepresented the 1998
transaction as a "merger of equals" that would
lead to two semiautonomous companies, one German
and one American.
Instead, he says, DaimlerChrysler has become a
German company and the struggling Chrysler
division is run by executives dispatched from
DaimlerChrysler's corporate headquarters in Stuttgart.
In the other corner will be the mastermind of the
deal, Jürgen E. Schrempp, the chairman of
DaimlerChrysler. He is being compelled to testify
by a recent court ruling.
A major piece of evidence will be an audiotape of
a 2000 interview that Mr. Schrempp gave to The
Financial Times of London. In the article based on
the interview, Mr. Schrempp is quoted as saying
that he never intended the deal to be a merger of
equals; his company's lawyer said his comments
Mr. Kerkorian is seeking $1 billion to $2 billion
in compensatory damages, Mr. Christensen said.
"He is a big boy," said J. Michael Schell, the
lead lawyer for DaimlerChrysler. "He had a huge
investment here. He's had investments in other
companies. He's had experience with hostile
takeovers and forcing his way on boards, including
Chrysler's itself. He's been around all of the
corporate games in the last 20 years, and he had
eyes and ears on the Chrysler board in addition to