Chrysler bought by Germany’s Daimler-Benz

Chrysler got on the map of car manufacturing with their purchase of the failing Maxwell Motor company — a popular brand that overextended itself. Chrysler, too, briefly overextended itself, but thanks to timely Congressional intercession, staved off a bankruptcy. The American market was fairly locked: it was one of the largest car companies in the nation. But their forays into Europe were less bold, and less successful. A German car conglomerate, Daimler-Benz AG, proposed a merger to help both Chrysler and themselves.

On this day, November 17, in 1998, five days after the official merger, Daimler-Chrysler began trading on the New York Stock Exchange, a mega car company that potentially could become a world-leading brand.

Unfortunately for Daimler-Chrysler, their timing was terrible. Three years later, a terrorist attack on New York led to an invasion of Iraq and Afghanistan, which in turn led to a spike in fuel prices. The American car manufacturers found their uneconomical models languishing on dealer lots, as potential customers opted for better-engineered imports. Chrysler lost over $1.5 billion in just one year, and Daimler decided to sell off their ill-fated acquisition to a private equity group.