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The authors and publishers have taken care in the preparation of this book, but make

no expressed or implied warranty of any kind and assume no responsibility for

errors or omissions. No liability is assumed for incidental or consequential damagesin connection with or arising out of the use of the information contained herein.

The publisher offers discounts on this book when ordered in quantity for special

sales. For more information please contact:

Corporate, Government and Special Sales Group

New Era Publishing, Inc

New York NY 10112

Library of Congress Cataloging-in-Publication Data

Marshall, Chris

Soal, Richard

Corporate Hubris : A Perspective of DaimlerChrysler /

Chris Marshall, Richard Soal

Includes appendix, bibliographical references and index.

ISBN 0-201-45313-3

1. Business enterprises--management. 2. Law--Contract.3. Law--Dispute. I. Title.

QA76.76.A65M3452000

005.121dc21

2005 by Chris Marshall and Richard Soal

1988 Cover Picture by Boris Vallejo

All rights reserved. No part of this book may be reproduced or transmitted in anyform or by any means, graphic, electronic, or mechanical, including photocopying,

recording, taping, or by any information storage or retrieval system, without the

permission in writing from the publisher.

ISBN 0-201-45313-3

Text printed on recycled and acid free paper.

1 2 3 4 5 6 7 8 9 10-MA-0302010099


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Corporate Hubris: A Perspective of DaimlerChrysler - Chris Marshall & Richard Soal i

Table of Contents

Foreword ...........................................................v

Preface...............................................................v

DaimlerChrysler.........................................................................................

Structure of the Book .................................................................................

Approach of the Book ................................................................................

Cover Picture ..............................................................................................

Chapter 1: Introduction.................................................. 1

Chapter 2: Personal Anecdotes.................................... 1

Boere Ferrari ..............................................................................................

E for Excellence ..........................................................................................

Tinny C Class..............................................................................................

Is My New Car Really New?......................................................................

Why Buy an Obsolete Jeep? ......................................................................
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Table of Contents

ii Corporate Hubris: A Perspective of DaimlerChrysler - Chris Marshall & Richard Soal

Spanners and Software............................................................................... 19

Chrysler Voyager ........................................................................................ 20

Insurance ..................................................................................................... 21

CLK500 Cabriolet ...................................................................................... 21

Chapter 3: Purpose & Process ...................................... 26

Motivation ................................................................................................... 26

Credentials................................................................................................... 27Purpose ........................................................................................................ 28

Process ......................................................................................................... 29

Sources ......................................................................................................... 31

Chapter 4: Intent & Outcome ......................................... 34

Market ......................................................................................................... 34

Product......................................................................................................... 36

Service.......................................................................................................... 42

Value............................................................................................................. 53

Ethics............................................................................................................ 69

Chapter 5: Corporate Hubris.......................................... 92

Appendix ........................................................... 95

Bibliography ..................................................... 123
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Corporate Hubris: A Perspective of DaimlerChrysler - Chris Marshall & Richard Soal ii

List of Figures

Sources of Information .........................................................................32

DaimlerChrysler Share Price ................................................................35

Mercedes-Benz Dependability .............................................................38

Customer Satisfaction Study ................................................................43

New Car Prices USA v RSA ................................................................56

New Vehicle Premiums ........................................................................57

Mercedes-Benz C240 Prices .................................................................59

Radio/Electrical Problems on Mercedes-Benz W211 E Class .............74

Sales Process Steps ...............................................................................85
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List of Figures

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A

Aberration 26Accident 17

Accounting Policy 24Alex Taylor III 126Alfred H. Ells 125Allan Sloan 128American Locomotive Company viiAmerican Management

Association 123American Motors viiiAnderson & Zemke 90Andre Jurgens 127, 128Anecdote 12, 29

Anger 27, 44ApproachAccessible 29Big Brother 46, 65Holistic 63Management 28of Book 12Rational 53

Arms Procurement Program 70Arrogance 27, 47, 48, 52, 62, 92, 93Attitude 11, 44, 50, 76

Cavalier 94

Dealer 47Dismissive 61Dont Bother Me 77Hubristic 93Uncaring 27

AuditInvoice 24Profession 24

B

Baby Boomer 81

BBC News 123Behavior 28Accountability 25Arrogant 48, 93Bizarre 11, 28Dysfunctional 28Employee 69Ethical 69

in Difficult Circumstances 72Individual 11, 34Senior Officers 69

Unethical 26Unusual 26

Benz & Co viiBenzworld 123Bertel M. Sparks 129Big Brother 46Blue Book 60, 61BMW 13, 59Boere Ferrari 14Botswana 18Brand and Trust 88

Brand Pretorius 53brandchannel.com 123Buick Motor Company viiBusiness Week 93, 129

C

Cape Town 16, 63Carl Friedrich Benz viiCarte Blanche 123CBS Evening News 123Chris Marshall 27, 94, 127Christine Tierney 129

Chrysler 32, 34, 40, 61Defects 73Investors 35Price 56Prices 59Service 42Shareholders 70Shipping Cost 58Takeover 40Voyager 20, 55

Chrysler Corporation vii

Competition 49, 68Commission 54Dealers 48, 68, 69Policy 48Tribunal 49, 50, 67, 125

Competitiveness 28complain-complain.com 32Complaint 47
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Discussion Forum 39Ethics 32I was Your Customer 33

Online 32Product 32Ruin any Business 33Satisfactorily Resolved 32Service 32Silent Majority 32Tip of the Iceberg 32Value 32Website 37, 39, 47

Computer Technology 20Consumer Affairs 28Consumer Experience 26

Consumer Policy Framework 125ConsumerAffairs.com 124consumeraffairs.com 32, 124Context 28Contract

Attitude to 94Conditions 21Expertise 28Hand Over 88Invoice 24Liability 24

Loss of Profits 23Offer to Purchase 22Price 22Representations 22Right of Resale 23Specifications 22Threat of Legal Action 88Trade in Value 22

CorporateMirror ixValues 90

Corporate Hubris 92, 124, 128

Corporate Management 67Corporate Policy 11, 63Corporate Shield 24Corporate Stakeholder 29Cover Picture xCriticism 28Curriculum Vitae viii

Customer 29Customers Needs 27Cyril Ramaphosa 80

D

Daimler Motor Company viiDaimler Motoren Gesellschaft viiDaimler-Benz viiiDaimlerChrysler 12, 24, 45, 124

Apology 80Arrogance 27, 47, 48, 52, 62Attitude 27, 44, 61, 76, 77, 93, 94Big Brother 46, 65Class Action 70Code of Ethics 69

Competition 49Confidence 20Consumer Experience 26Corporate Shield 24Cover-up 41Dealer 30Defect 40Embarrassment 80Engineering Integrity 41Ethics 24, 26, 45, 69, 87Foundation 70

Future of the Automobile 94Integrity 69Integrity Code 69Latent Defect 20Management 26, 28Management Attention 40Management Development 29Management Resources 40Maybach 80Merger with Chrysler 35, 40, 126New Distribution Policy 27, 50, 51,

84

No Response 22Policy 23, 40, 48Product 47Prohibition 51Quality 26, 39Reputation 40Response 40, 46
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SEC 71Service 46, 47, 61Share Price 34, 36

Skill 48Strategy 34Survival 91Termination 44Trade in Policy 61, 63Trade in Value 61Truth 94Value 45Warranty 40

DaimlerChrysler Aerospace 70daimlerchrysler.com 124

daimlerchryslervehicleproblems.com32David Ticoll 77, 129Dealer

Attitude 44, 47Blue Book 60Charge Back 87DaimlerChrysler 30Ethics 32Involvement by DaimlerChrysler 50Negotiation 60, 62Network 49, 59

Orbit Motors 20, 88Principal 20, 22Profit 56Prohibition 51Rectify Fault 31, 42, 46, 74Sandown Motors 16, 72Sandown Service Center 45Sandown Western Cape 88Taken Over 63

Defect 40, 44Latent 20

Manufacturing 37, 87New Vehicle 31Persistent 48

Deon Ebersohn 54Department of Trade and Industry 28,

49, 125

DependabilityPrice 59

Depreciation 60Derek Watts 123Detroit Free Press 129

Deutsche Welle 35, 124Discussion Forum 30, 39Disgust 44Dodge viiidodgelemons.com 32Don Tapscott 77, 129DTI 28, 49, 125Duncan Williamson 130

E

Ed Garsten 126

edmunds.com 125Electrical System 39Electronic Mail 30en.wikipedia.org 129Engineering 16Engineering Integrity 34Enron 128Enterprise Modeling 127epinions.com 127Estelle Ellis 125Ethics 24, 26, 31, 32, 45, 69, 87

Dealer 32

European Aeronautic Defence andSpace Company (EADS) 70

Executive Remuneration 27Expectation 11

F

Fanyana Shiburi 80Foote, Cone & Belding 89, 127Fortune Magazine 36, 126forums.mbnz.org 123Frustration 27, 44

Future of the Automobile 94

G

General Electric 63Gerald Hill 126Globalisation 11Gottlieb Daimler vii
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H

hellopeter.com 32, 126Henry Root ix, 128, 130

Herr Kaufmann 127High Technology 19Holistic Approach 63Howard A. Gutman 126Humor 28Hyundai viii

I

Icarus xIndependent Suspension 17Insurance Premium 21Integrity 69, 78

Engineering 41Trust 72, 88

Integrity Code 69Internet 30, 60

Well Informed 41Inventory 50

J

Jack Welch 63Janet Pines 89, 127JD Power & Associates 37, 42, 126Jeep

American Motors viiiCherokee 17, 55, 63City Slicker 18Grand Cherokee 17, 65Liberty 17, 55Price 56Rubicon Trail 19Service 45Technology 17Value 45

Jessica Bezuidenhout 127

Joan Claybrook 93, 124Joann Muller 129Johann Friedrich von Schiller 78Jonathan Swift ix, 29Journal of Business 128Jovial Rantao 128Jrgen E. Schrempp v, x, 34, 70

Just in Time 27

K

Kanban 27Kathleen Hill 126Ken Belson 129Kgalagadi Transfrontier Park 18King Mswati 80Kirk Kerkorian 35, 69Kristin Anderson 123

L

Land Cruiser 94Land Rover 19Latent Defect 20

Laurel Kenner 127Lawyer 23, 28, 31, 35, 40, 49, 51, 60, 83,

84, 86, 87, 88, 94

Lean Manufacturing 50Lee Rondganger 125Legal Action

Costs 88Threat of 88

Lexus 94, 127Loss of Profits 23Luxury Vehicle Market 36

M

Malawi 18Management

Approach 28Attention 40Book 13Core Skill 29Corporate 67Development 26, 29Orbit Motors 88Resources 40

Senior 70Structure 67Systems 27

Marvin Meintjies 128Material Requirements Planning 27Matt Karnitschnig 129Maxwell Motor Company vii
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Maybach viii, 80, 129McCarthy Motors 16, 53Mead & McGrouther 60

Blue Book 60, 61meadnet.co.za 127

meadnet.co.za 127Mercedes-Benz 13

300SL 13300TD 47Audio System 42C180 Kompressor 37CLK500 Cabriolet 21, 23, 48, 56, 61Complaint 36Consumer Warning 127

Dependability 19, 38E-Class 15, 40Finance and Insurance 21Hunk of Junk 39Known Problem 42Life Span 15Losing its Shine? 36, 94Manual Gearbox 38ML320 47Price 23, 56Price Premium 37Quality 19, 36, 37, 39, 40

Recall 40Service 42SL500 54SLK32 AMG 62Software 20, 42, 74, 75Test Drive 23Trade in 23Trade in Value 53Values 16W123 280E 13W124 127

W124 300E 14W202 16W210 280E 16W211 E320 19, 21, 75, 76, 79Warranty 87

Mercedes-Benz E320 79mercedes-benz-usa.com 32, 127mercedesproblems.com 32

Michael Cusumano 34, 124Michael Moore ixMichael Schmidt 128

Michael Woerfel 71Mika Brzezinski 123Mitsubishi viii, 19Moon Ihlwan 129Motor Industry ix, 28, 29, 53, 67Motor Vehicle 30, 44, 45, 47, 50, 51, 59

Appropriate 19Condition 63, 79Defective 20, 31, 86Demonstration 51Depreciation 61

Inspection 17Insurance 21Luxury 28Manufacturer 31Price 53, 54, 55, 57Showroom Model 21Specification 16, 83Status 13, 14, 94Trade in 60, 62

Motoring Press 31, 57Mozambique 46Mzilikazi wa Afrika 127

N

Namibia 17New Distribution Policy 27, 50, 51, 84New York Stock Exchange 34, 71Niedhoffer and Kenner 2001 127Nissan 19Nomthetho Simelane 80

O

Offer to Purchase 22

Oldsmobile 37OnlineArticle 30Complaint 32Discussion 31Discussion Forum 30Magazine 39Research 30
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Options 54, 55Available 54Cellular Phone 76

Configuration 51, 58Effect on Price 56Factory Fitted 50Head Lamp 64USA v RSA 51

Orbit Motors 20, 21, 23, 24, 67Unsatisfactory Response 22

Owen Bell 48, 61, 63

P

Patrice Motsepe 80Personal Perspective 27

Perspective 29Peter Cheales 33, 124, 126Platteland 18Policy 23, 40, 48

Corporate 11Policy Making 28Pretoria News 128Price 23, 51, 53, 54, 123, 125

Brand Premium 63Chrysler 56Dependability 59

Increase in 63Investment 55Jeep 56Mercedes-Benz 56Policy 69Premium 37, 59Profiteering 55Residual Value 60Spare Parts 63USA v RSA 53, 55

Product 31, 47Public Citizen News 124

Pull System 50Purpose viii, 13, 26, 28

Executive 27Research 30

Q

Quality 16, 26, 39, 40

Deteriorating 36Mercedes-Benz 36of Service 42

Superior 48Zero Defect 27

R

Radio Fault 19Rafael Mrowczynski 129Red Herring 124Relationship 12Research 24, 27

Discussion Forum 30, 39Internet 30Literature 29

Material 30Motivation 26Motoring Press 31, 57Online Article 30Purpose 30Resources 29Sources 31Statistics 40Thesis 29Website 30, 37, 39www.sesh.com 30

Richard Roll 92, 128Richard Soal 28, 94, 128Robert Sobel 93, 129Roger Hoerl 126Ron Zemke 123Ronald Snee 126Roy Cokayne 125

S

Sales 15Condition of 24Department 61

Loss of Profits 23Process 23Uncertain 22Value 14, 36, 62

Sandown Motor Holdings 17, 49, 61,67, 72

Sandown Motors 16, 72
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Sandown Western Cape 24, 48, 67Sarah A. Webster 129SEC 71

Secret Bank Account 71Securities and Exchange

Commission 71Service 31, 61

Chrysler 42Excellence 28Failure 31Jeep 45Mercedes-Benz 42

sesh.com 32, 128Share Price 34

Simon & Schuster 129Skoda 127Smart viiiSoftware 17, 20, 27, 42, 74, 75Source 31Sources of Information 31, 32South Africa 17, 30, 128

Local Manufacture 36Spares and Service 36

Soweto 89Spare Parts

Availability 19

Policy 54Price 63

Spazza 89Specification 55Stakeholders 29, 78Steven Andrew Fugue 126Stolen Key 19Strategy 34

Legal 87, 88Sunday Times 127, 129Swaziland 80

SystemAudio 42, 74Distribution 49Legal 60Navigation 75NDP 50SRS 19, 74Windshield Washing 39

T

Tanzania 18The Detroit News 126

The Mercury 123The Star 125, 128Tokyo Sexwale 80Tom Blackett 89, 123Tom Peters 127Tony Yengeni 70, 128Toyota 19, 50, 126Tracinda Corporation 69Trade in 23

Attitude 61Blue Book 60

Depreciation 60Negotiation 60Policy 61, 63Poor Value 62Value 22, 23, 24, 53, 59, 60, 61Worst Deal 61

Transparency 41, 67, 78troublebenz.com 32, 129Trust 88Trust and Truth 89Truth 94

Trust 89

Tylenol 72Tyres 18

U

UCDD 14Unfair Business Practices 28United Car and Diesel Distributors 14University of Cape Town 29University of Swaziland 80

V

Value 11, 31Corporate 90of Reputation 89Resale 14Residual 60

Value Judgement 32Victor Niedhoffer 127Volvo 61
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W

Walter Percy Chrysler viiWarranty 31, 40, 63, 87

Washington Post 128Website 30, 37, 39, 47brandchannel.com 123complain-complain.com 32consumeraffairs.com 32, 124daimlerchrysler.com 124daimlerchryslervehicleproblems.co

m 32dodgelemons.com 32edmunds.com 125en.wikipedia.org 129epinions.com 127

forums.mbnz.org 123hellopeter.com 32, 126meadnet.co.za 127mercedes-benz-usa.com 32, 127mercedesproblems.com 32sesh.com 32, 128troublebenz.com 32, 129www.sesh.com 30

Weidenfeld & Nicholson 128Wikipedia 129

Z

Zambia 18Zero Defect 27Zimbabwe 18
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cxl

corporate hubris

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