
EP 12 Part 1: John Stech: Did DaimlerChrysler perish from irreconcilable intercultural conflict?
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In today’s Auto Ethnographer episode, host John Stech dives deep into his experience at DaimlerChrysler. He worked within both halves of the merged companies for the duration of the company’s nine year existence. Did its end stem from irreconcilable intercultural differences? The Auto Ethnographer dives in to answer the question and the conclusion may surprise you.
On the day of the merger announcement in May 1998, John Stech was driving to work at Mercedes-Benz USA. He was so shocked by the news announcement that he pulled over on the side of the road to hear the report.
As head of Product Management for SUVs, John was responsible for the M-Class SUV and was involved in a Mercedes-Benz minivan project. It turns out that these two vehicles would be the only overlaps between the merging partners. Would the status quo remain or would the vehicles be cancelled as competing duplicates? John traces the story of the M-Class and Jeep Grand Cherokee overlap and the meetings that occurred to decide their fate.
After leaving Product Management at Mercedes-Benz and shifting into Strategic Volume Planning, little did he know that this move would prepare him for a transition to the Chrysler side of DaimlerChrysler at its headquarters in Auburn Hills, a suburb of Detroit, in 2002.
John’s assignment at Chrysler International, a division of the company responsible for 120 non-NAFTA markets, was to revamp the volume planning system in time for a major new product offensive. In doing so he had to gain trust with an experienced Chrysler team and get their support in building a modernized approach to sales and production planning. This effort ended up impacting not only the International markets, but also caused the American, Canadian, and Mexican markets to change their approach to forecasting and vehicle ordering.
In the closing days of the merger, John had moved to Egypt (the topic of Episode 11) where he first strove to harmonize the frayed working relationship between Mercedes-Benz and Chrysler. Later he would have to begin the sales company wind-down process to separate the companies.
This is John’s personal story through nine years of experiences at DaimlerChrysler, as seen from the front row on both sides of the merged entity. He understands that his experience was different than that of others. While some viewed the merger positively, many derided one or the other merger partner.
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