BIBLIOGRAFÍA

One of the three most important goals to be announced at the press conference of the DaimlerChrysler AG takeover in May 1998 was to improve customer satisfaction (DaimlerChrysler AG Video Appendix 1.1). However, one of the most obvious shortcomings of the paradigm of lean production and mass production in the 1990s was quality at both Chrysler and Mercedes. At the time of the takeover announcement in May 1998, Chrysler had reduced its development times to 24 months. At the same time Mercedes had brought out 10 new models in the previous 3 years. That compares significantly with the three new models, which had been launched in the previous ten years before 1995. Although both companies were able to achieve commercial success, quality issues started to crop up very quickly.

The measurement of quality of a particular vehicle is widely accepted within the industry. In the United States of America customers turn to J.D. Power (Initial Quality Study and APEAL) and Consumers Report, two institutions that monitor customer satisfaction and measure technical reliability respectively. J.D. Power’s Initial Quality Study (IQS) is particularly telling, because it measures defects, malfunctions and design-based issues within the first 90 days of ownership. Their benchmarking provides an industry-wide comparison of mistakes per vehicle, which is generally accepted as an objective measurement of vehicle quality. In the case of Mercedes models, specially prepared cars are tested at the company’s Long Beach Vehicle Preparation Centre (VPC) in California. So if these vehicles have problems they are truly indicative of general manufacturing and quality issues. In addition J.D. Power’s APEAL direct customer survey measures the rate of satisfaction of customers after the first ninety days of ownership of the vehicle of their choice. APEAL results have always been more controversial than IQS results because APEAL does not measure whether a Toyota is better than a Mercedes APEAL rather measures whether Mercedes customers are more satisfied with their Mercedes than Toyota customers with their Toyotas. Since dominating the rankings in the late 1980s and early 1990s J.D. Power rankings both for IQS and APEAL have always

Jürgen Schrempp constantly defined and reiterated the goal of Mercedes’ quality offensives to reach the Number 1 ranking (DaimlerChrysler AG Annual Meeting April 6^th 2005). J.D.

Power also conducts a Vehicle dependability Study (VDS), which monitors reliability after three year’s ownership, but this study does not match the industry’s focus on IQS and APEAL. Moreover, the increasing globalization of J.D. Power’s activities with expansion of its survey to Europe and Asia has also augmented its influence within the global automobile industry. Toyota, for example, used their high J.D. Power rankings in their attempts to expand their share of the German market.

Although Consumers Report is less known in Europe than J.D. Power, it is a major annual publication for the car industry in North America. The magazine is published by Consumers Union, which is a non-profit consumer advocacy organization, acting in the interests of consumers since 1936. The magazine’s rejection of outside advertising has allowed it to achieve a reputation for fairness and objectivity. As will be shown further below, the negative ratings for Mercedes vehicles in the first decade of the 21^st century contributed to the devaluation of the Mercedes brand.

A third instrument for measuring quality is the governmental National Highway and Traffic Association (NHTSA), which provides open access to its database documenting comprehensively all safety recalls and technical defect investigations for all makes and models of vehicles registered in the USA. One example from the Mercedes-Benz M-Class (Figure 15) is included here to illustrate the comprehensive nature of NHTSA reporting. A full list of recalls for the Mercedes M-Class and E-Class vehicles during the critical years for Mercedes quality under Schrempp is included in the NHTSA Recalls Appendix (281 ff.).

Because NHTSA recalls draw attention to serious safety issues, they are indicative are further underlying quality issues at any manufacturer. Safety doubts are particularly damaging to brands, such as Mercedes, which make safety a central component of their overall brand image. Recalls affecting the E-Class were particularly damaging to the overall customer perception of Mercedes quality in the USA.

Figure 15: NHTSA Recall Mercedes-Benz M-Class (2003)

Make: MERCEDES BENZ Model: M CLASS

Model Year: 2003

Manufacturer: MERCEDES-BENZ USA, LLC. Mfr's Report Date: MAR 26, 2003 NHTSA CAMPAIGN ID Number: 03V121000 NHTSA Action Number: PE03006 Component: STEERING:HYDRAULIC POWER ASSIST:HOSE, PIPING, AND CONNECTIONS

Summary:

ON CERTAIN PASSENGER VEHICLES, THE HOSE CLAMP USED TO SECURE THE POWER STEERING FLUID COOLING HOSE TO THE POWER STEERING FLUID COOLER MAY NOT PROVIDE SUFFICIENT CLAMPING FORCE FOR THIS CONNECTION.

Consequence:

THE LOSS OF POWER STEERING FLUID MAY RESULT IN DIMINISHED POWER STEERING OVER TIME AND ULTIMATELY CAN DAMAGE THE POWER STEERING PUMP.

Remedy:

DEALERS WILL INSTALL A NEW HOSE CLAMP ON THE POWER STEERING HOSE TO THE POWER STEERING COOLER. DURING CLAMP REPLACEMENT, THE POWER STEERING COOLING HOSE WILL BE INSPECTED AND REPLACED AS NECESSARY. OWNER NOTIFICATION BEGAN JUNE 16, 2003. OWNERS WHO TAKE THEIR VEHICLES TO AN AUTHORIZED DEALER ON AN AGREED UPON SERVICE DATE AND DO NOT RECEIVE THE FREE REMEDY WITHIN A REASONABLE TIME SHOULD CONTACT MERCEDES-BENZ AT 1-800-367-6372.

Notes:

MERCEDES-BENZ RECALL NO. 2003-040005. CUSTOMERS CAN ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S AUTO SAFETY HOTLINE AT 1-888-DASH-2-DOT (1-888-327-4236).

Make: MERCEDES BENZ Model: M CLASS

Model Year: 2003

Manufacturer: MERCEDES-BENZ USA, LLC. Mfr's Report Date: SEP 16, 2008 NHTSA CAMPAIGN ID Number: 08V465000 NHTSA Action Number: RQ08002 Component: STEERING:HYDRAULIC POWER ASSIST:HOSE, PIPING, AND CONNECTIONS

Summary:

MERCEDES-BENZ IS RECALLING 125,228 MY 1998-2004 M-CLASS VEHICLES. THE HOSE CLAMP USED TO SECURE THE POWER STEERING FLUID COOLING HOSE TO THE POWER STEERING FLUID COOLER MAY NOT PROVIDE SUFFICIENT CLAMPING FORCE FOR THIS

CONNECTION.

Consequence:

THE LOSS OF POWER STEERING FLUID MAY RESULT IN DIMINISHED POWER STEERING OVER TIME AND ULTIMATELY CAN DAMAGE THE POWER STEERING PUMP. THIS COULD RESULT IN A LOSS OF CONTROL AND A CRASH WITHOUT WARNING.

Remedy:

AN EARLIER RECALL REPAIR PERFORMED ON THESE VEHICLES MAY NOT BE SUFFICIENT TO PREVENT A FUTURE LEAKAGE OR FAILURE OF THE POWER STEERING HOSE CONNECTION (PLEASE SEE 03V121). SINCE IT IS NOT POSSIBLE THROUGH INSPECTION TO IDENTIFY SPECIFIC VEHICLES THAT MAY NOT HAVE BEEN PROPERLY REPAIRED, ALL VEHICLES REPAIRED PRIOR TO NOVEMBER 15, 2003, WILL BE REPAIRED AGAIN. THE RECALL IS EXPECTED TO BEGIN DURING NOVEMBER 2008. OWNERS MAY CONTACT MERCEDES-BENZ AT 1-800-367-6372.

Notes:

MERCEDES-BENZ RECALL NO. 2003040005. CUSTOMERS MAY CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY: 1-800-424-9153); OR GO TO HTTP://WWW.SAFERCAR.GOV.

Make: MERCEDES BENZ Model: M CLASS

Model Year: 2003

Manufacturer: MERCEDES-BENZ USA, LLC. Mfr's Report Date: MAR 31, 2011 NHTSA CAMPAIGN ID Number: 11V208000 NHTSA Action Number: PE10050 Component: VEHICLE SPEED CONTROL:CRUISE CONTROL

Summary:

MERCEDES-BENZ IS RECALLING CERTAIN MODEL YEAR 1999-2002 M-CLASS AND MODEL YEAR 2000-2003 M-CLASS AMG VEHICLES. THE CRUISE CONTROL SYSTEM IN THE AFFECTED VEHICLES ALLOWS THE DRIVER TO DISENGAGE THE SYSTEM IN A NUMBER OF WAYS, INCLUDING TAPPING THE BRAKE PEDAL, USING THE CRUISE CONTROL STALK, OR BRAKING THE VEHICLE ENOUGH TO REACH A CERTAIN RATE OF DECELERATION. MERCEDES-BENZ HAS DETERMINED THAT UNDER CERTAIN CIRCUMSTANCES USE OF THE BRAKE PEDAL MAY NOT AUTOMATICALLY DISENGAGE CRUISE CONTROL AS EXPECTED BY THE DRIVER, ALTHOUGH THE OTHER MEANS OF DEACTIVATING CRUISE CONTROL REMAIN FULLY OPERATIVE. SPECIFICALLY, WHERE THE DRIVER PUMPS THE BRAKES RATHER THAN APPLYING

Consequence:

DIFFICULTY OR DELAY IN DISENGAGING CRUISE CONTROL CAN INCREASE THE RISK OF A CRASH.

Remedy:

DEALERS WILL REPAIR THE VEHICLES FREE OF CHARGE. THE SAFETY RECALL BEGAN DURING OCTOBER 2011. OWNERS MAY CONTACT MERCEDES-BENZ AT 1-800-367-6372.

Notes:

MERCEDES-BENZ CAMPAIGN NUMBER IS 2011090001. OWNERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV .

1200 New Jersey Avenue, SE, West Building Washington DC 20590 USA 1.888.327.4236 TTY 1.800.424.9153

Source: NHTSA Recalls /nhtsa.gov: DaimlerChrysler Figures Appendix 5.3

A fourth source of quality “information” is certainly the numerous Mercedes owners’ forums and Internet chatrooms. Although the objective understanding of the precise technical nature of certain issues cannot be trusted, the growing amount of “bad noise” between 1998 and 2005 does indicate to a certain extent the general level of customer dissatisfaction.

On the German side, the situation is less objective. Privacy laws are much tighter than in the USA. Furthermore, the industry tends to limit studies for internal use only and there is an understanding within the German car industry not to use this information against competitors (Wall Street Journal February 4^th, 2001). Furthermore, studies such as the German Automobile Association’s ADAC “Pannenbericht” (car breakdown report) are less reliable instruments of quality and tend to put non-German manufacturers at a disadvantage. If a Mercedes driver has a breakdown, for example, they can notify the Mercedes call centre directly and that defect does not appear in the official statistics. Secondly, vehicle recalls are triggered by OEMs themselves and no public database is available as is the case with NHTSA. Thirdly, German car magazines depend heavily on advertising investments from the German OEMs and there is a close relationship between the magazines and the OEMs. The current head of Mercedes-Benz motorsport, for example, Norbert Haug, was the former head of Auto, Motor and Sport magazine. Fourthly, critical consumer publications such as Stiftung Warentest do not have the facilities to test cars in the same manner as Consumers Report.

Consumers Report’s April issue on car quality and dependability is an annual event in the USA and the most important issue of the year for car buyers. Within this coordinated network of “protected” information in Germany, monitoring newspaper reports of consumer dissatisfaction provide important clues to the current quality status and customer satisfaction.

In the case of Mercedes one of the most important customer bases are German taxi drivers.

Perhaps more than any other customer segment, German taxi drivers helped to contribute to the brand’s reputation for product quality, reliability and durability. It is therefore worth

noting the increasing dissatisfaction of this group beginning with public protests against the bad quality of the W124 in the 1980s (Der Spiegel 48, 1986). This public and vocal dissonance grew louder in the 1990s and first decade of this century.

Using all of these instruments the next sections will attempt to show that the DaimlerChrysler AG takeover did not cause “quality” problems at Mercedes and Chrysler, but rather served to augment and deepen the quality crisis at each company respectively. The discussion will focus on the Mercedes brand because its dramatic drop in industry ratings was the most critical quality event during the existence of DaimlerChrysler AG. It is also significant that Mercedes quality ratings started to improve after the disbandment of DaimlerChrysler AG.