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The case study is about the US based operations of the auto company DaimlerChrysler. DaimlerChrysler group is one of the largest vehicle manufacturers in the world. It is a leading supplier of passenger cars, sport-utility vehicles (SUVs), minivans, pick-ups and commercial vehicles. The company came into existence in 1998 with the merger of Germany-based Daimler-Benz and the US-based Chrysler Corporation but was finding it difficult to integrate German and American cultures and to leverage each other''s strengths fully and go to market as a cohesive unit. In 2006, the Chrysler Group division of DaimlerChrysler was facing a difficult market environment in the United States with excess inventory, non-competitive costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. It recorded a loss of $1.4 billion for the third quarter of 2006. The case discusses reasons behind DaimlerChrysler''s problems in the US and the turnaround initiatives launched by its parent company in 2006.