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Deutsche Aerospace (DASA)
Daimler Benz Aerospace (DASA)
DaimlerChrysler Aerospace (DASA)

In 1989, Germany's largest industrial firm, Daimler-Benz, established Deutsche Aerospace (DASA) as one of its four major corporate units by merging MBB, Dornier, MTU, and the electronic company Telefunken Systemtechnik (TST). The most outstanding event in the German defense industry was the creation in 1989 of a "Systemführer." The expression "systemfuhrer" is best interpreted as meaning "systems integrator" as opposed to the more literal translation as "systems leader". Daimler-Benz merged with Messerschmitt-Boelkow-Blohm to form a conglomerate that controlled more than 60 percent of Germany's defense business, including Dornier (aircraft and missiles) and AEG (electronics). Dormer, Motorenund Turbinen Union (engines), Messerschmitt-Boelkow-Blohm (aircraft and missiles), and Deutsche Airbus joined to form one company - Deutsche Aerospace.

In so doing, the Federal Ministry of Economics, along with Daimler Benz AG and Messerschmitt-Bölkow-Blohm GmbH, moved to establish an institutionally-based competitive edge in military and civilian aircraft, mainly on three grounds. The merger was intended to: 1. Produce system leadership through the MSB's technological know-how, Daimler's managerial know-how and Daimler's connection with the Deutsche Bank; 2. Make possible spin-offs from MSB's technology to the other businesses of Daimler Benz; and 3. Improve the competitive position vis-à-vis the "monopolistic power" of the U.S. aerospace firms, most of all Boeing.

However, the merger did not change the relative position of Daimler Benz as one of the top-100 arms-producing companies of OECD and LDC countries. Instead it managed to keep Daimler Benz from falling back internationally to an otherwise hypothetical 23rd by adding MBB to the newly founded Daimler Benz subsidiary, DASA.

By 1990, DASA managers had settled antitrust and monopoly issues with the German federal government and completed the basic organizational structure for DAM. This new structure in Germany's aerospace sector represented a departure from the mix of small-and medium-sized firms that characterizes most of Germany's industrial structure. As of the fall of 1992, both the TST and MBB identities were defunct because DASA had achieved full takeover of both. Although DASA has also achieved full takeover of MTU, whose activities were those of DASA'S Propulsion Group, MTU'S name was being preserved because DASA is attempting to exchange MTU shares with Pratt & Whitney as part of its cooperative agreement on aircraft engine programs. Dormer's identity was being continued because family members still controlled 42.45 percent of Dormer's shares.

DASA was Germany's only large civil aircraft manufacturer and was also Germany's largest aircraft engine manufacturer. In 1992, DASA was responsible for about $7 billion of Germany's $13.9 billion aeronautics sales. DASA spent about $3.3 billion, or about 30 percent of its total 1992 sales revenue, on R&D. DASA'S aircraft and propulsion groups employed at least 55,700 of Germany's estimated 61,400 aeronautics-related employees. A portion of DASA defense and civil systemsgroup's employees may also be involved in aeronautics work.

The majority of the German aeronautics industry's market was outside of Germany, and DASA was typically a partner in international efforts to build aircraft. According to DASA'S 1992 Annual Report, about 72 percent of DASA's aircraft group sales represented exports. One of DASA's most successful cooperative ventures was its 37.9-percent share in the Airbus program. Other key DASA cooperative ventures included the following: DASA had a 40-percent share in Eurocopter, the company formed by DASA'S 1991 merger with Aerospatiale's helicopter operations. The Dutch aircraft manufacturer Fokker was taken over by the German company Deutsche Aerospace (DASA) in 1994. DASA had a 5l-percent share in the Dutch Fokker aircraft group (acquired in 1993). Fokker products included aircraft in the 50-seat twin-turboprop category to compete with similar products produced by France's Aerospatiale. According to DASA, this acquisition made it possible for the company to set up an internationally competitive European structure in regional aircraft manufacturing, in which it hoped to include Aerospatiale and other partners.

Fokker Aircraft, formerly a Deutsche Aerospace division of Daimler-Benz Aerospace, declared bankruptcy in March 1996.

DASA collaborated with Pratt & Whitney on engines for commercial and executive aircraft. Since 1991, a partnership had existed between DASA'S MTU and Pratt & Whitney. MTU was the preferred partner in all Pratt & Whitney engine programs. In the early 1990s DASA participated in a joint study with Boeing and other aircraft manufacturers to assess the feasibility of developing a new generation super-jumbo aircraft with a potential range of 600 to 800 seats, which eventually materialized as the Airbus A380.

In 1995, Deutsche Aerospace became Daimler-Benz Aerospace, which included about 80 percent of German industrial capabilities in aerospace. Daimler-Benz merged with Chrysler Corporation to become the DaimlerChrysler Group / DaimlerChrysler AG ("DCAG") . The new company still used the abbreviated name DASA. DASA itself had emerged in 1998 by fusion of Daimler-Benz Aerospace (originally merged from Daimler-Benz, Dornier, MBB-Erno, MTU and TST) with Chrysler. The aerospace unit, the largest defense and aerospace corporation in Germany, was renamed DaimlerChrysler Aerospace AG.

For the European aerospace industry, history was made on 14 October 1999 in Strasbourg when the merger of France's Aerospatiale Matra, itself previously formed by merger of Aerospatiale and French/British Matra Marconi Space, and Germany's DaimlerChrysler Aerospace (DASA) was formally agreed, laying the foundation for the European Aeronautic Defence and Space Company (EADS), Europe's new industry leader. In December 1999, EADS was further enlarged when Casa of Spain (Construcciones Aeronáuticas S.A.) became the third founding member. Employing a total of 96,000 and generating a joint turnover of $20 billion, EADS belonged to the "top three" high-tech aerospace and defense companies in the world (behind Boeing and Lockheed Martin).

The merger with the Chrylser Corporation was intended to create a global powerhouse, but it quickly became apparent that the "merger of equals" was really a German takeover of the longtime number three American carmaker. In February 2007, Daimler announced that it was considering all options for Chrysler. Cerebrus Capital Management paid $7.4 billion for an 80.1 percent stake in the new company, to be known as Chrysler LLC. In October 2007, shareholders in the German company approved a move to rename it Daimler A.G.

Herr Gottlieb Daimler, in the years 1885 to 1889, took out certain Patents 30 "with reference to parts of the apparatus used in motor driven vehicles or their" engines. He formed a German Company by the name of the Daimler Motoren " Gesellschaft, and assigned his Patents to that Company. He became its " managing director. One Wilhelm Maybach was in the employment of the " Daimler Motoren Gesellschaft. Subsequent Patents were from time to time 35 " taken out, some in the name of Daimler, some in that of Maybach, and some " in other names, to all of which the Daimler Motoren Gesellschaft was in fact " entitled. " Cannstadt Daimler," referring to the cars of the Cannstadt Company. These ceased to be so called, the name of their cars being now "Mercedes."

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Page last modified: 11-07-2011 02:53:59 ZULU