History of Chrysler
Encyclopedia
Origins
ChryslerChrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
was founded by Walter Chrysler
Walter Chrysler
Walter Percy Chrysler was an American machinist, railroad mechanic and manager, automotive industry executive, Freemason, and founder of the Chrysler Corporation.- Railroad career :...
on June 6, 1925, when the Maxwell Motor Company
Maxwell automobile
The Maxwell was a brand of automobiles manufactured in the United States of America from about 1904 to 1925. The present-day successor to the Maxwell company is Chrysler Group.-History:...
(est. 1904) was re-organized into the Chrysler Corporation.
Walter Chrysler had originally arrived at the ailing Maxwell-Chalmers
Chalmers Automobile
Chalmers Motor Car Company was a United States based automobile company located in Detroit, Michigan. It was named after Hugh Chalmers of the National Cash Register Company. The brand is currently owned by Chrysler.-History:...
company in the early 1920s, having been hired to take over and overhaul the company's troubled operations (just after a similar rescue job at the Willys
Willys
Willys was the brand name used by Willys-Overland Motors, an American automobile company best known for its design and production of military Jeeps and civilian versions during the 20th century.-Early History:In 1908, John Willys bought the Overland Automotive Division of Standard Wheel Company...
car company).
In late 1923 production of the Chalmers automobile was ended.
Then in January 1924, Walter Chrysler launched an eponym
Eponym
An eponym is the name of a person or thing, whether real or fictitious, after which a particular place, tribe, era, discovery, or other item is named or thought to be named...
ous automobile. The 70 was a 6-cylinder, designed to provide customers with an advanced, well-engineered car, at a more affordable price than they might expect. (Elements of this car are traceable back to a prototype
Prototype
A prototype is an early sample or model built to test a concept or process or to act as a thing to be replicated or learned from.The word prototype derives from the Greek πρωτότυπον , "primitive form", neutral of πρωτότυπος , "original, primitive", from πρῶτος , "first" and τύπος ,...
which had been under development at Willys at the time Chrysler was there).
Engineering innovations
The original 1924 Chrysler included a carburetor air filter, high compression engine, full pressure lubrication, and an oil filter, at a time when most autos came without these features. Among the innovations in its early years would be the first practical mass-produced four-wheel hydraulic brakes, a system nearly completely engineered by Chrysler with patents assigned to Lockheed. Chrysler pioneered rubber engine mounts to reduce vibration; OiliteOilite
Oilite is a bronze or iron alloy impregnated with an oil lubricant commonly used in bearing applications. The original Oilite and Oilite Plus are bronze alloys, but the related bearing alloys Super Oilite and Super Oilite 16 are iron based...
bearings; and superfinishing
Superfinishing
Superfinishing, also known as micromachining and short-stroke honing, is a metalworking process that improves surface finish and workpiece geometry. This is achieved by removing just the thin amorphous surface layer left by the last process with an abrasive stone; this layer is usually about...
for shafts.
Chrysler also developed a road wheel with a ridged rim, designed to keep a deflated tire from flying off the wheel. This safety wheel was eventually adopted by the auto industry worldwide.
Following the introduction of the Chrysler, the Maxwell marque was dropped after the 1925 model year
Model year
The model year of a product is a number used worldwide, but with a high level of prominence in North America, to describe approximately when a product was produced, and indicates the coinciding base specification of that product....
. The new, of lower-priced 4-cylinder Chryslers introduced for 1926 year were badge-engineered
Badge engineering
Badge engineering is an ironic term that describes the rebadging of one product as another...
Maxwells.
The advanced engineering and testing that went into Chrysler Corporation cars helped to push the company to the second-place position in U.S. sales by 1936, a position it would last hold in 1949.
Vehicle marques
Plymouth (automobile)
Plymouth was a marque of automobile based in the United States, produced by the Chrysler Corporation and its successor DaimlerChrysler.-Origins:...
brand was introduced at the low priced end of the market (created essentially by once again reworking and rebadging
Badge engineering
Badge engineering is an ironic term that describes the rebadging of one product as another...
Chrysler's 4-cylinder model). At the same time, the DeSoto
DeSoto (automobile)
The DeSoto was a brand of automobile based in the United States, manufactured and marketed by the Chrysler Corporation from 1928 to 1961. The DeSoto logo featured a stylized image of Hernando de Soto...
marque was introduced in the medium-price field. Shortly thereafter, Chrysler bought the Dodge Brothers automobile and truck company and launched the Fargo
Fargo (truck)
Fargo was a brand of truck manufactured by the Chrysler Corporation. In general terms, Fargo trucks were a mere rebadging of Dodge trucks models.-History:...
range of trucks. By the late 1930s, the DeSoto and Dodge
Dodge
Dodge is a United States-based brand of automobiles, minivans, and sport utility vehicles, manufactured and marketed by Chrysler Group LLC in more than 60 different countries and territories worldwide....
divisions would trade places in the corporate hierarchy. This proliferation of marques under Chrysler's umbrella might have been inspired by the similar strategy employed successfully by General Motors. Beginning in 1955, Imperial
Imperial (automobile)
Imperial was the Chrysler Corporation's luxury automobile brand between 1955 and 1975, with a brief reappearance in 1981 to 1983.The Imperial name had been used since 1926, but was never a separate make, just the top-of-the-line Chrysler. In 1955, the company decided to spin it off as its own make...
, formerly the top model
Chrysler Imperial
The Chrysler Imperial, introduced in 1926, was the company's top of the range vehicle for much of its history. Models were produced with the Chrysler name until 1954, and again from 1990 to 1993. The company tried to position the cars as a prestige marque that would rival Cadillac and Lincoln...
of the Chrysler brand, became a separate marque of its own, and in 1960, the Valiant
Plymouth Valiant
The Plymouth Valiant is an automobile manufactured by the Plymouth division of Chrysler Corporation in the United States from 1960 to 1976. It was created to give the company an entry in the compact car market emerging in the late 1950s...
was introduced likewise as a distinct marque. In the U.S. market, Valiant was made a model in the Plymouth line and the DeSoto make was discontinued for 1961. With those exceptions per applicable year and market, Chrysler's range from lowest to highest price from the 1940s through the 1970s was Valiant, Plymouth, Dodge, DeSoto, Chrysler, and Imperial
Chrysler Imperial
The Chrysler Imperial, introduced in 1926, was the company's top of the range vehicle for much of its history. Models were produced with the Chrysler name until 1954, and again from 1990 to 1993. The company tried to position the cars as a prestige marque that would rival Cadillac and Lincoln...
. After acquiring AMC in 1987, Chrysler fulfilled one of AMC's conditions of sale by creating the Eagle
Eagle (automobile)
Eagle was a marque of the Chrysler Corporation following the purchase of American Motors Corporation and aimed at the enthusiast driver.Though short-lived, the Eagle Vision sedan sold in respectable numbers, while the sporty Eagle Talon sold more than 115,000 units.-Overview:Following the...
marque in 1988 to be sold at existing AMC-Jeep
Jeep
Jeep is an automobile marque of Chrysler . The first Willys Jeeps were produced in 1941 with the first civilian models in 1945, making it the oldest off-road vehicle and sport utility vehicle brand. It inspired a number of other light utility vehicles, such as the Land Rover which is the second...
dealers. The Eagle brand lasted a decade, being discontinued in 1998, while Plymouth was ended three years later.
By 2001 and as of September 2009, the company had three marques worldwide: Dodge, Jeep, and Chrysler. Effective October 2009, however, a fourth brand was established with the creation of the Ram brand, a breakout from the Dodge marque. Initially, the new brand consisted of the Ram
Dodge Ram
The Dodge Ram is a full-size pickup truck manufactured by the Chrysler Group LLC. As of late 2010, it has been sold under the Ram Trucks brand. Previously, Ram was part of the Dodge lineup of light trucks...
full-size pickup, Dakota
Dodge Dakota
The Dodge Dakota is a mid-size pickup truck from Chrysler's Ram division. From its introduction through 2009, it was marketed by Dodge. The first Dakota was introduced in 1986 as a 1987 model alongside the redesigned Dodge Ram 50...
compact pickup and the Sprinter van
Mercedes-Benz Sprinter
The Mercedes-Benz Sprinter is a light and heavy commercial vehicle, built by Daimler AG of Stuttgart, Germany as a van, chassis cab and minibus, and sold as a Mercedes model, except in the U.S. where it is built from complete knock down kits and was sold by Freightliner until 2010 when Mercedes...
. During the unveiling of Chrysler's business plan on November 5, CEO Sergio Marchionne indicated that the Ram brand will be augmented by Fiat-sourced vehicles, including a smaller van than the Sprinter, which itself would be replaced by a Fiat-based vehicle.
MoPar, Chryco, AutoPar
Mopar
Mopar is the automobile parts and service arm of Chrysler Group LLC. The term was first used by Chrysler in the 1920s and has been in continuous use ever since. Mopar parts are original equipment manufactured parts for Chrysler vehicles...
brand (a portmanteau of Motor Parts), with the result that "Mopar" remains a colloquial term for vehicles produced by Chrysler Corporation.
The MoPar (later Mopar) brand was not used in Canada, where parts were sold under the Chryco and AutoPar brands, until the Mopar brand was phased into the Canadian market beginning in the late 1970s.
Airtemp
Chrysler's Airtemp marque for stationary and mobile air conditioningAir conditioning
An air conditioner is a home appliance, system, or mechanism designed to dehumidify and extract heat from an area. The cooling is done using a simple refrigeration cycle...
, refrigeration
Refrigeration
Refrigeration is a process in which work is done to move heat from one location to another. This work is traditionally done by mechanical work, but can also be done by magnetism, laser or other means...
, and climate control
HVAC
HVAC refers to technology of indoor or automotive environmental comfort. HVAC system design is a major subdiscipline of mechanical engineering, based on the principles of thermodynamics, fluid mechanics, and heat transfer...
was launched with the first installation in 1930's Chrysler Building
Chrysler Building
The Chrysler Building is an Art Deco style skyscraper in New York City, located on the east side of Manhattan in the Turtle Bay area at the intersection of 42nd Street and Lexington Avenue. Standing at , it was the world's tallest building for 11 months before it was surpassed by the Empire State...
,
though the Airtemp Corporation would not be incorporated until 1934, when it used a former Maxwell factory.
Vapor-compression refrigeration
Vapor-compression refrigeration is one of the many refrigeration cycles available for use. It has been and is the most widely used method for air-conditioning of large public buildings, offices, private residences, hotels, hospitals, theaters, restaurants and automobiles...
, and the self-contained air conditioning system, along with a superior high-speed radial compressor, and by 1941 had over 500 dealers selling its air conditioning and heating systems. The company supplied medical refrigeration units in World War II, and dominated the industry in the 1940s but slowly fell behind. By the 1970s Airtemp was losing money, and was sold to Fedders
Fedders
Fedders Corporation manufactures air conditioners and other air treatment products. The company is French and was founded in Paris, France. US company headquarters are in Liberty Corner, New Jersey....
in 1976.
Acustar
In the 1980s, Chrysler formed a subsidiary business called Acustar to sell parts to other automakers as well as supplying parts for Chrysler-built vehicles, similar to General Motors' creation of Delphi Corporation and Ford's later creation of VisteonVisteon
Visteon is one of the world's largest suppliers of automotive parts. The company formed in 1997 and spun off from the Ford Motor Company in 2000. In 2005, Visteon moved to new headquarters in Van Buren Township, Michigan...
.
Safeguard
Safeguard is Chrysler's brand for original and replacement auto glass, which is generally manufactured for Chrysler by established glass companies.Airflow
In 1934 the company introduced the AirflowChrysler Airflow
The Chrysler Airflow is an automobile produced by the Chrysler Corporation from 1934-1937. The Airflow was the first full-size American production car to use streamlining as a basis for building a sleeker automobile, one less susceptible to air resistance...
models, featuring an advanced streamlined body, among the first to be designed using aerodynamic
Aerodynamics
Aerodynamics is a branch of dynamics concerned with studying the motion of air, particularly when it interacts with a moving object. Aerodynamics is a subfield of fluid dynamics and gas dynamics, with much theory shared between them. Aerodynamics is often used synonymously with gas dynamics, with...
principles. Chrysler created the industry's first wind tunnel
Wind tunnel
A wind tunnel is a research tool used in aerodynamic research to study the effects of air moving past solid objects.-Theory of operation:Wind tunnels were first proposed as a means of studying vehicles in free flight...
to develop them. Buyers rejected its styling, and the more conventionally designed Dodge and Plymouth cars pulled the firm through the Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
years. Plymouth was one of only a few marques that actually increased sales during the cash-strapped thirties.
The unsuccessful Airflow had a chilling effect on Chrysler styling and marketing, which remained determinedly conservative through the 1940s and into the 1950s, with the single exception of the installation of hidden headlights on the very brief production run of 1942 DeSotos. Engineering advances continued, and in 1951 the firm introduced the first of a long and famous series of Hemi V8
V8 engine
A V8 engine is a V engine with eight cylinders mounted on the crankcase in two banks of four cylinders, in most cases set at a right angle to each other but sometimes at a narrower angle, with all eight pistons driving a common crankshaft....
s. In 1955 things brightened with the introduction of Virgil Exner
Virgil Exner
Virgil Max "Ex" Exner, Sr. was an automobile designer for numerous American companies, notably Chrysler and Studebaker. He is known for his "Forward Look" design on the 1955-1963 Chrysler products and his fondness of fins on cars for both aesthetic and aerodynamic reasons.-Early life:Born in Ann...
's successful Forward Look
Forward Look
Forward Look was a design theme employed by Virgil Exner in styling the 1955 through 1961 Chrysler Corporation vehicles.When Exner joined Chrysler, the company's vehicles were being fashioned by engineers instead of designers, and so were considered outmoded, unstylish designs...
designs, followed in 1956 by Chrysler's pioneering adoption of transistor
Transistor
A transistor is a semiconductor device used to amplify and switch electronic signals and power. It is composed of a semiconductor material with at least three terminals for connection to an external circuit. A voltage or current applied to one pair of the transistor's terminals changes the current...
radios in cars. With the inauguration of the second generation Forward Look cars for 1957, Torsion-Aire suspension was introduced. This was not air suspension, but an indirect-acting, torsion-spring front suspension system which drastically reduced unsprung weight
Unsprung weight
In a ground vehicle with a suspension, the unsprung weight is the mass of the suspension, wheels or tracks , and other components directly connected to them, rather than supported by the suspension...
and shifted the car's center of gravity
Center of gravity
In physics, a center of gravity of a material body is a point that may be used for a summary description of gravitational interactions. In a uniform gravitational field, the center of mass serves as the center of gravity...
downward and rearward. This resulted in both a smoother ride and significantly improved handling. A rush to production of the 1957 models led to quality control problems including poor body fit and finish, resulting in significant and early rusting. This, coupled with a national recession, found the company again in recovery mode.
Government programs
During World War II, essentially all of Chrysler’s facilities were devoted to building military vehicles. One of Chrysler’s most significant contributions to the war effort, however, was not in the field of vehicles but in the radar field. After the war. Chrysler continued with special projects for the Government; these were in the aerospace fields of missiles and space boosters.Radar antennas
When the Radiation LaboratoryRadiation Laboratory
The Radiation Laboratory, commonly called the Rad Lab, was located at the Massachusetts Institute of Technology in Cambridge, Massachusetts and functioned from October 1940 until December 31, 1945...
at MIT
Massachusetts Institute of Technology
The Massachusetts Institute of Technology is a private research university located in Cambridge, Massachusetts. MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological education and research.Founded in 1861 in...
was established in 1941 to develop microwave
Microwave
Microwaves, a subset of radio waves, have wavelengths ranging from as long as one meter to as short as one millimeter, or equivalently, with frequencies between 300 MHz and 300 GHz. This broad definition includes both UHF and EHF , and various sources use different boundaries...
radars, one of the first projects resulted in the SCR-584, the most widely recognized radar system of the war era. This system included a parabolic antenna
Parabolic antenna
A parabolic antenna is an antenna that uses a parabolic reflector, a curved surface with the cross-sectional shape of a parabola, to direct the radio waves. The most common form is shaped like a dish and is popularly called a dish antenna or parabolic dish...
six feet in diameter that was mechanically aimed in a helical pattern (round and round as well as up and down).
For the final production design of this antenna and its highly complex drive mechanism, the Army’s Signal Corps Laboratories
Signal Corps Laboratories
Signal Corps Laboratories was formed on June 30, 1930, as part of the U.S. Army Signal Corps at Fort Monmouth, New Jersey. Through the years, the SCL had a number of changes in name, but remained the operation providing research and development services for the Signal Corps.-Background:At the...
turned to Chrysler’s Central Engineering Office. There, the parabola was changed from aluminum to steel, allowing production forming using standard automotive presses. To keep weight down, 6,000 equally spaced holed were drilled in the face (this had no effect on the radiation pattern). The drive mechanism was completely redesigned, using technology derived from Chrysler’s research in automotive gears and differentials. The changes resulted in improved performance, reduced weight, and easier maintenance. A large portion of the Dodge plant was used in building 1,500 of the SCR-584 antennas as well as the vans used in the systems.
Missiles
In April 1950, the U.S. Army established the Ordnance Guided Missile Center (OGMC) at Redstone ArsenalRedstone Arsenal
Redstone Arsenal is a United States Army base and a census-designated place adjacent to Huntsville in Madison County, Alabama, United States and is part of the Huntsville-Decatur Combined Statistical Area...
, adjacent to Huntsville, Alabama
Huntsville, Alabama
Huntsville is a city located primarily in Madison County in the central part of the far northern region of the U.S. state of Alabama. Huntsville is the county seat of Madison County. The city extends west into neighboring Limestone County. Huntsville's population was 180,105 as of the 2010 Census....
. To form OGMC, about 1,000 civilian and military personnel were transferred from Fort Bliss, Texas. Included was a group of German scientists and engineers led by Wernher von Braun
Wernher von Braun
Wernher Magnus Maximilian, Freiherr von Braun was a German rocket scientist, aerospace engineer, space architect, and one of the leading figures in the development of rocket technology in Nazi Germany during World War II and in the United States after that.A former member of the Nazi party,...
; this group had been brought to America under Project Paperclip. OGMC designed the Army’s first short-range ballistic missile
Short-range ballistic missile
A short-range ballistic missile is a ballistic missile with a range of about 1,000 km or less. They are usually capable of carrying nuclear weapons. In potential regional conflicts, these missiles would be used because of the short distances between some countries and their relative low cost...
, the PGM-11 Redstone, based on the WWII German V-2 missile. Chrysler established the Missile Division to serve as the Redstone prime contractor, setting up an engineering operation in Huntsville and for production obtaining use from the U.S. Navy of a large plant in Warren, Michigan
Warren, Michigan
Warren is a city in Macomb County in the U.S. state of Michigan. The 2010 census places the city's population at 134,056, making Warren the largest city in Macomb County, the third largest city in Michigan, and Metro Detroit's largest suburb....
. The Redstone was in active service from 1958 to 1964; it was also was also the first missile to test-launch a live nuclear weapon
Nuclear weapon
A nuclear weapon is an explosive device that derives its destructive force from nuclear reactions, either fission or a combination of fission and fusion. Both reactions release vast quantities of energy from relatively small amounts of matter. The first fission bomb test released the same amount...
, first detonated in a 1958 test in the South Pacific.
Working together, the Missile Division and von Braun’s team greatly increased the capability of the Redstone, resulting in the PGM-19 Jupiter, a medium-range ballistic missile
Medium-range ballistic missile
A medium-range ballistic missile , is a type of ballistic missile with medium range, this last classification depending on the standards of certain organizations. Within the U.S. Department of Defense, a medium range missile is defined by having a maximum range of between 1,000 and 3,000 km1...
. In May 1959, a Jupiter missiles launched two small monkeys into space in a nose cone
Nose cone
The term nose cone is used to refer to the forwardmost section of a rocket, guided missile or aircraft. The cone is shaped to offer minimum aerodynamic resistance...
on a Jupiter; this was America’s first successful flight and recovery of live space payloads. Responsibility for deploying Jupiter missiles was transferred from the Army to the Air Force; armed with nuclear warheads, they were first deployed in Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
and Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
during the early 1960s.
Space boosters
In July 1959, NASANASA
The National Aeronautics and Space Administration is the agency of the United States government that is responsible for the nation's civilian space program and for aeronautics and aerospace research...
chose the Redstone missile as the basis for the Mercury-Redstone Launch Vehicle
Mercury-Redstone Launch Vehicle
The Mercury-Redstone Launch Vehicle, designed for NASA's Project Mercury, was the first American manned space booster. It was used for six sub-orbital Mercury flights from 1960–61; culminating with the launch of the first, and 11 weeks later, the second American in space.A member of the...
to be used for suborbital test flights of the Project Mercury
Project Mercury
In January 1960 NASA awarded Western Electric Company a contract for the Mercury tracking network. The value of the contract was over $33 million. Also in January, McDonnell delivered the first production-type Mercury spacecraft, less than a year after award of the formal contract. On February 12,...
spacecraft. Three unmanned MLRV launch attempts were made between November 1960 and March 1961, two of which were successful. The MLRV successfully launched the chimpanzee Ham
Ham the Chimp
Ham , also known as Ham the Chimp and Ham the Astrochimp, was the first chimpanzee launched into outer space in the American space program...
and astronaut
Astronaut
An astronaut or cosmonaut is a person trained by a human spaceflight program to command, pilot, or serve as a crew member of a spacecraft....
s Alan Shepard
Alan Shepard
Alan Bartlett Shepard, Jr. was an American naval aviator, test pilot, flag officer, and NASA astronaut who in 1961 became the second person, and the first American, in space. This Mercury flight was designed to enter space, but not to achieve orbit...
and Gus Grissom
Gus Grissom
Virgil Ivan Grissom , , better known as Gus Grissom, was one of the original NASA Project Mercury astronauts and a United States Air Force pilot...
on three suborbital flights in January, May and July of 1961.
As America's manned space flight plans became more ambitious, Wernher von Braun's
Wernher von Braun
Wernher Magnus Maximilian, Freiherr von Braun was a German rocket scientist, aerospace engineer, space architect, and one of the leading figures in the development of rocket technology in Nazi Germany during World War II and in the United States after that.A former member of the Nazi party,...
team designed the Saturn family
Saturn (rocket family)
The Saturn family of American rocket boosters was developed by a team of mostly German rocket scientists led by Wernher von Braun to launch heavy payloads to Earth orbit and beyond. Originally proposed as a military satellite launcher, they were adopted as the launch vehicles for the Apollo moon...
of launch vehicle
Launch vehicle
In spaceflight, a launch vehicle or carrier rocket is a rocket used to carry a payload from the Earth's surface into outer space. A launch system includes the launch vehicle, the launch pad and other infrastructure....
s. With Chrysler's Huntsville operation then designated the Space Division, Chrysler became Marshall Space Flight Center
Marshall Space Flight Center
The George C. Marshall Space Flight Center is the U.S. government's civilian rocketry and spacecraft propulsion research center. The largest center of NASA, MSFC's first mission was developing the Saturn launch vehicles for the Apollo moon program...
’s prime contractor for the first (booster) stage of the Saturn I
Saturn I
The Saturn I was the United States' first heavy-lift dedicated space launcher, a rocket designed specifically to launch large payloads into low Earth orbit. Most of the rocket's power came from a clustered lower stage consisting of tanks taken from older rocket designs and strapped together to make...
and Saturn IB
Saturn IB
The Saturn IB was an American launch vehicle commissioned by the National Aeronautics and Space Administration for use in the Apollo program...
vehicles. The Saturn I booster stage was designated S-I, which was upgraded to the S-IB
S-IB
The S-IB stage was the first stage of the Saturn IB launch vehicle, which was used for Earth orbital missions. It was composed of nine propellant containers, eight fins, a thrust structure assembly, eight H-1 rocket engines, and many other components...
for the Saturn IB. Chrysler based its fuel tank design on a cluster of its Redstone and Jupiter tanks, using four Redstone tanks to hold the RP-1
RP-1
RP-1 is a highly refined form of kerosene outwardly similar to jet fuel, used as a rocket fuel. Although having a lower specific impulse than liquid hydrogen , RP-1 is cheaper, can be stored at room temperature, is far less of an explosive hazard and is far denser...
fuel and four to hold the liquid oxygen
Liquid oxygen
Liquid oxygen — abbreviated LOx, LOX or Lox in the aerospace, submarine and gas industries — is one of the physical forms of elemental oxygen.-Physical properties:...
(LOX) oxidizer, around a central Jupiter LOX tank. Chrysler built these for the Apollo program in the Michoud Assembly Facility
Michoud Assembly Facility
The Michoud Assembly Facility is an 832-acre site owned by NASA and located in New Orleans East, a large district within the city of New Orleans, Louisiana, United States. Organizationally, it is part of NASA's Marshall Space Flight Center...
in East New Orleans, one of the largest manufacturing plants in the world.
Between October 1961 and July 1965, NASA launched four S-I boosters with dummy upper stages on suborbital test flights, followed by six complete Saturn Is on unmanned orbital flights. The last five of these tested boilerplate Apollo spacecraft
Apollo spacecraft
The Apollo spacecraft was composed of five combined parts designed to accomplish the American Apollo program's goal of landing astronauts on the Moon by the end of the 1960s and returning them safely to Earth...
, and the last three also carried Pegasus micrometeroid detection satellites. All flights were successful.
Between February 1966 and July 1975, NASA launched nine Saturn IBs on two suborbital flights and seven orbital flights (five of which were manned); all flights were successful.
1960s
Starting in the 1960 model year, Chrysler built all their passenger cars with Unibody (unit-body or monocoqueMonocoque
Monocoque is a construction technique that supports structural load by using an object's external skin, as opposed to using an internal frame or truss that is then covered with a non-load-bearing skin or coachwork...
) construction, except the Imperials which retained body-on-frame construction until 1967. Chrysler thus became the only one of the Big Three American automakers (General Motors Corporation, Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
, and Chrysler) to offer unibody construction on the vast majority of their product lines. This construction technique, now the worldwide standard, offers advantages in vehicle rigidity, handling, and crash safety, while reducing squeak and rattle development as the vehicle ages. Chrysler's new compact line, the Valiant
Valiant
- Vehicles :* Plymouth Valiant, automobile manufactured by the Plymouth division of Chrysler Corporation from 1960 to 1976* Chrysler Valiant, automobile manufactured by Chrysler Australia from 1962 to 1981...
, opened strong and continued to gain market share for over a decade. Valiant was introduced as a marque of its own, but the Valiant line was placed under the Plymouth marque for US-market sales in 1961. The 1960 Valiant was the first production automobile with an alternator
Alternator
An alternator is an electromechanical device that converts mechanical energy to electrical energy in the form of alternating current.Most alternators use a rotating magnetic field but linear alternators are occasionally used...
(generating alternating current
Alternating current
In alternating current the movement of electric charge periodically reverses direction. In direct current , the flow of electric charge is only in one direction....
, paired with diode
Diode
In electronics, a diode is a type of two-terminal electronic component with a nonlinear current–voltage characteristic. A semiconductor diode, the most common type today, is a crystalline piece of semiconductor material connected to two electrical terminals...
s for rectification
Rectifier
A rectifier is an electrical device that converts alternating current , which periodically reverses direction, to direct current , which flows in only one direction. The process is known as rectification...
back to direct current
Direct current
Direct current is the unidirectional flow of electric charge. Direct current is produced by such sources as batteries, thermocouples, solar cells, and commutator-type electric machines of the dynamo type. Direct current may flow in a conductor such as a wire, but can also flow through...
) rather than a direct current electrical generator
Electrical generator
In electricity generation, an electric generator is a device that converts mechanical energy to electrical energy. A generator forces electric charge to flow through an external electrical circuit. It is analogous to a water pump, which causes water to flow...
as standard equipment. It proved such an improvement that it was used in all Chrysler products in 1961. The DeSoto marque was withdrawn from the market after the introduction of the 1961 models due in part to the broad array of the Dodge lines and the general neglect of the division. The same affliction plagued Plymouth as it also suffered when Dodge crept into Plymouth's price range. This would eventually lead to the demise of Plymouth several decades later. An ill-advised downsizing of the full-size Dodge and Plymouth lines in 1962 hurt sales and profitability for several years.
Plymouth Barracuda
The Plymouth Barracuda is a 2-door car that was manufactured by the Plymouth division of the Chrysler Corporation from 1964-1974.The first-generation Barracuda, a fastback A-body coupe based on the Plymouth Valiant, had a distinctive wraparound back glass and was available from 1964-1966.The...
, which was a Valiant sub-model, was introduced. The huge glass rear window and sloping roof were polarizing styling features. Barracuda was released almost two weeks before Ford's Mustang
Ford Mustang
The Ford Mustang is an automobile manufactured by the Ford Motor Company. It was initially based on the second generation North American Ford Falcon, a compact car. Introduced early on April 17, 1964, as a "1964½" model, the 1965 Mustang was the automaker's most successful launch since the Model A...
, making the Barracuda the first pony car
Pony car
Pony car is an American class of automobile launched and inspired by the Ford Mustang in 1964. The term describes an affordable, compact, highly styled car with a sporty or performance-oriented image.-Origins of the breed:...
. Even so, the Mustang outsold it 10-to-1 between April 1964 and August 1965. Perception of the Barracuda as nothing but a reskinned Valiant was not aided by sharing front-end sheetmetal.
Chrysler's target buyers were obviously men, and attracting female buyers was not apparently a high priority, for a 1967 sales brochure proclaimed, "At last--specifications your wife can understand." (This was, perhaps, an improvement over the Dodge La Femme option of 1955, for it recognized women were at least reading the specifications.)
Expansion into Europe
In the 1960s Chrysler expanded into Europe, attaining a majority interest in the British Rootes Group in 1964, SimcaSimca
Simca was a French automaker, founded in November 1934 by Fiat. It was directed from July 1935 to May 1963 by the Italian Henri Théodore Pigozzi...
of France and Barreiros
Barreiros
-Portugal:* Barreiros , a civil parish in the municipality of Amares* Barreiros , a civil parish in the municipality of Miranda do Douro* Barreiros , a civil parish in the municipality of Valpaços...
of Spain, to form Chrysler Europe
Chrysler Europe
Chrysler Europe was a division of the Chrysler Corporation that operated between 1967 and 1979.-Formation:In the 1960s, Chrysler sought to become a world producer of automobiles. The company had never had much success outside North America, contrasting with Ford's worldwide reach and General...
. For the Rootes Group one outcome of this takeover was the launch of the Hillman Avenger
Hillman Avenger
The Hillman Avenger was a rear-wheel drive small family car originally manufactured under the Hillman marque by the Rootes Group from 1970–1976, and made by Chrysler Europe from 1976–1981 as the Chrysler Avenger and finally the Talbot Avenger...
in 1970 (briefly sold in the U.S. as the Plymouth Cricket), which sold in Britain alongside the rear-engined Imp and the Hunter. During the 1970s the former Rootes Group got into severe financial difficulties. The Simca and Barreiros divisions were more successful, but in the end the various problems were overwhelming and the firm gained little from these ventures. Chrysler sold these assets to PSA Peugeot Citroën
PSA Peugeot Citroën
PSA Peugeot Citroën is a French manufacturer of automobiles and motorcycles sold under the Peugeot and Citroën marques. Headquartered in the 16th arrondissement of Paris, PSA is the second largest automaker based in Europe and the number eight in the world.-History:In December 1974 Peugeot S.A....
in 1978, which in turn sold the British and Spanish truck production lines to Renault
Renault Trucks
Renault Trucks is a French truck manufacturer with its corporate headquarters at Saint-Priest near Lyon. Originally part of Renault, it has been owned by Volvo Group since 2001....
of France.
More successfully, at this same time the company helped create the muscle car
Muscle car
Muscle car is a term used to refer to a variety of high-performance automobiles. The Merriam-Webster dictionary defines muscle cars as "any of a group of American-made 2-door sports coupes with powerful engines designed for high-performance driving." Usually, a large V8 engine is fitted in a...
market in the U.S., first by producing a street version of its Hemi racing engine and then by introducing a legendary string of affordable but high-performance vehicles such as the Plymouth GTX
Plymouth GTX
The Plymouth GTX was introduced as the Belvedere GTX in 1967 by the Plymouth division to be a "gentleman's" muscle car.It's most notable appearance in modern popular culture is in the television series Angel, in which the title character drove a black 1967 model.-1967:It was to be an exceptional...
, Plymouth Road Runner
Plymouth Road Runner
The Plymouth Road Runner was a muscle car built by the Plymouth division of the Chrysler Corporation in the United States between 1968 and 1980. In 1968, the first muscle cars were, in the opinion of many, moving away from their roots as relatively cheap, fast cars as they gained options...
, and Dodge Charger
Dodge Charger (B-body)
The Dodge Charger was a mid-size automobile produced by Dodge. The 1966-1974 Chargers were based on the Chrysler B platform. The 1975-1978 Chargers were based on the Chrysler Cordoba.-Origin of the Charger:...
. The racing success of several of these models on the NASCAR
NASCAR
The National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
circuit burnished the company's engineering reputation.
The 1970s
The 1970s were tumultuous for Chrysler. U.S. anti-trust laws prohibited U.S. automakers from forming Japanese- or European-style industry consortiums which helped their foreign competitors to save costs on regulatory regimes of car safetyAutomobile safety
Automobile safety is the study and practice of vehicle design, construction, and equipment to minimize the occurrence and consequences of automobile accidents. Automobile safety is the study and practice of vehicle design, construction, and equipment to minimize the occurrence and consequences of...
and emissions
Automobile emissions control
Vehicle emissions control is the study and practice of reducing the motor vehicle emissions -- emissions produced by motor vehicles, especially internal combustion engines....
. No cost-sharing was possible; each company had to solve each problem on its own, and Chrysler's lower sales volumes meant these new development and implementation costs made up a larger proportion of a vehicle's cost compared to Ford and General Motors. To avoid pricing themselves out of the market, they had to retrofit and detune their existing engines to meet emission requirements, which resulted in lower fuel economy when fuel prices were rising. There was a rush of sales for the compact Dodge Dart
Dodge Dart
The Dodge Dart is an automobile built by the Dodge division of the Chrysler Corporation from 1960-1976 in North America, with production extended to later years in various other markets. The Dart was introduced as a lower-priced, shorter wheelbase, full-size Dodge in 1960 and 1961, became a...
and Plymouth Valiant
Plymouth Valiant
The Plymouth Valiant is an automobile manufactured by the Plymouth division of Chrysler Corporation in the United States from 1960 to 1976. It was created to give the company an entry in the compact car market emerging in the late 1950s...
, but the 1973 oil crisis
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
sharply reduced demand for the large, fuel-thirsty vehicles Americans had previously bought in large number and which made up the bulk of Chrysler's product line.
At mid-decade, the company scored a conspicuous success with its first entry in the personal luxury car
Personal luxury car
A personal luxury car is a highly styled, luxury vehicle with an emphasis on image over practicality. Accenting the comfort and satisfaction of its owner and driver above all else, the personal luxury car sometimes sacrifices passenger capacity, cargo room, and fuel economy in favor of style and...
market, the Chrysler Cordoba
Chrysler Cordoba
The Chrysler Cordoba was an intermediate personal luxury coupe sold by Chrysler Corporation in North America from 1975-1983. It was the company's first model produced specifically for the personal luxury market and the first Chrysler-branded vehicle that was less than full-size.-History:In the...
. The hurried introduction of the Dodge Aspen and Plymouth Volaré
Dodge Aspen
The Dodge Aspen, produced from 1976 to 1980, was a compact car from Chrysler Corporation's Dodge division; its Plymouth-branded counterpart was the Volaré . It was launched as a two-door coupe, a four-door sedan, and a unique-for-the-segment station wagon...
in 1976 brought enormous warranty costs to repair faulty design and shoddy construction, and destroyed the longstanding loyalty built up by the Dart and Valiant predecessors. Chrysler Europe essentially collapsed in 1977, and was offloaded to Peugeot
Peugeot
Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker based in Europe.The family business that precedes the current Peugeot company was founded in 1810, and manufactured coffee mills and bicycles. On 20 November 1858, Emile Peugeot applied for the lion...
the following year, soon after having helped design the new Plymouth Horizon and Dodge Omni
Dodge Omni
The Dodge Omni and the similar Plymouth Horizon were front wheel drive cars introduced by the Dodge and Plymouth divisions of the Chrysler Corporation in North America in 1978, and were based on a European Simca-based design of the same name...
. In 1980, Chrysler Australia
Chrysler Australia
Chrysler Australia is the importer of Chrysler, Jeep and Dodge vehicles for sale in the Australian marketplace. However, there had previously been a "Chrysler Australia Ltd" which had operated as a vehicle manufacturer in Australia from 1951 until 1980....
, which was producing the locally developed Chrysler Valiant
Chrysler Valiant
The Chrysler Valiant is a passenger car which was introduced by Chrysler Australia in 1962 with production ceasing in 1981. Initially a rebadged locally assembled Plymouth Valiant from the U.S., the Valiant range was sold throughout Australia and New Zealand, as well as South Africa...
and the Mitsubishi Galant
Mitsubishi Galant
The first generation of the car, initially known as the Colt Galant, was released in December 1969. The design was dubbed "Dynawedge" by Mitsubishi, referring to the influence of aerodynamics on the silhouette. Three models were available, powered by the new 'Saturn' engine in 1.3 or 1.5 L ...
based Chrysler Sigma
Chrysler Sigma
The Chrysler Sigma is a version of the Mitsubishi Galant automobile that was built by Chrysler Australia in Adelaide from 1977. When Mitsubishi Motors Australia took over Chrysler Australia's manufacturing facilities in 1980, they renamed the vehicle the Mitsubishi Sigma...
, was sold to Mitsubishi Motors
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...
and changed its name to Mitsubishi Motors Australia Limited
Mitsubishi Motors Australia
Mitsubishi Motors Australia Limited is a fully owned subsidiary of parent company Mitsubishi Motors Corporation of Japan. Its Australian administrative headquarters are located at Tonsley Park , with branch offices in Brisbane, Sydney, Melbourne and Perth...
. The subcompact Horizon was reaching the US market as the second gas crisis struck, devastating sales of Chrysler's larger cars and trucks, and the company had no strong compact line to fall back on.
Turbine
For many years, Chrysler developed gas turbineGas turbine
A gas turbine, also called a combustion turbine, is a type of internal combustion engine. It has an upstream rotating compressor coupled to a downstream turbine, and a combustion chamber in-between....
engines, which are capable of operating on a wide array of combustible fuels, for automotive use. Turbines were common in military vehicles, and Chrysler built many prototypes for passenger cars. In the 1960s, mass production seemed almost ready. Fifty Chrysler Turbine Car
Chrysler Turbine Car
Chrysler Turbine Cars were automobiles powered by gas turbine engines that the Chrysler Corporation assembled in a small plant in Detroit, Michigan, USA in 1963, for use in the only consumer test of gas turbine-powered cars...
s, specialty designed Ghia
Carrozzeria Ghia
Carrozzeria Ghia SpA is one of the most famous Italian automobile design and coachbuilding firms, established by Giacinto Ghia and Gariglio as Carrozzeria Ghia & Gariglio, located at 4 Corso Valentino in Turin....
-bodied coupes were built in 1962 and placed in the hands of consumers for final testing. After further development and testing to make emissions conform to 1970s-enacted EPA standards, the engines were planned as an option for the 1977 model LeBaron. However, Chrysler was forced to abandon the turbine engine as a precondition of U.S. government loan guarantees when the company experienced financial difficulties in the late 1970s.
Lee Iacocca's Impact
In 1978, Lee Iacocca
Lee Iacocca
Lido Anthony "Lee" Iacocca is an American businessman known for engineering the Mustang, the unsuccessful Ford Pinto, being fired from Ford Motor Company, and his revival of the Chrysler Corporation in the 1980s...
, recently fired from being Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
's executive, was aggressively courted and brought in as CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
. At the time, Chrysler was losing millions, largely due to recalls of the company's Dodge Aspen
Dodge Aspen
The Dodge Aspen, produced from 1976 to 1980, was a compact car from Chrysler Corporation's Dodge division; its Plymouth-branded counterpart was the Volaré . It was launched as a two-door coupe, a four-door sedan, and a unique-for-the-segment station wagon...
and Plymouth Volare, cars that Iacocca would later claim should never have been built. He began rebuilding the entire company from the ground up, laying off many workers, selling the loss-making Chrysler Europe
Chrysler Europe
Chrysler Europe was a division of the Chrysler Corporation that operated between 1967 and 1979.-Formation:In the 1960s, Chrysler sought to become a world producer of automobiles. The company had never had much success outside North America, contrasting with Ford's worldwide reach and General...
division to Peugeot
Peugeot
Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker based in Europe.The family business that precedes the current Peugeot company was founded in 1810, and manufactured coffee mills and bicycles. On 20 November 1858, Emile Peugeot applied for the lion...
, and bringing in many former associates from his former company. Also from Ford, Iacocca brought to Chrysler the "Mini-Max" project, which would bear fruit in 1983 with the successful Dodge Caravan
Dodge Caravan
The Dodge Caravan is a family minivan manufactured by Chrysler Group LLC and sold under its Dodge brand. Along with its nameplate variant, the Plymouth Voyager, the Caravan was introduced for the 1984 model year. In 1987, the Dodge Grand Caravan long-wheelbase model was introduced and sold...
and Plymouth Voyager
Plymouth Voyager
In 1984, the Voyager name was applied to Plymouth's variant of Chrysler's all new minivan. This Voyager used the Chrysler S platform, which was derived from the K-platform . In addition to using a derived platform, the Voyager shared many components with the K-cars, most notably the interior...
. Henry Ford II had wanted nothing to do with the Mini-Max, a restyled version of the minivan that Toyota was selling in huge numbers in Asia and Latin America, which doomed the project at Ford. Hal Sperlich, the driving force behind the Mini-Max at Ford had been fired a few months before Iacocca and was waiting for him at Chrysler, where the two would make automotive history. Iacocca proved to be a capable public spokesman, appearing in advertisements to advise customers that "If you find a better car, buy it." He would also provide a rallying point for Japan-bashing and instilling pride in American products. His book Talking Straight
Talking Straight
Talking Straight is a book written by Lee Iacocca, then CEO of Chrysler Motors, with Sonny Kleinfeld. It was written to balance Akio Morita's Made in Japan, a non-fiction book praising Japan's post-war hard-working culture. Talking Straight praised the innovation and creativity of Americans....
was a response to Akio Morita
Akio Morita
Akio Morita KBE was a Japanese businessman and co-founder of Sony Corporation along with Masaru Ibuka.-Early life:...
's Made in Japan
Made in Japan (biography)
Made in Japan : Akio Morita and Sony is an autobiography of Akio Morita, the co-founder and former chairman of Sony Corporation. It was written with the assistance of Edwin M. Reingold and Mitsuko Shimomura...
.
Iacocca arrived shortly after the introduction of the subcompact Dodge Omni
Dodge Omni
The Dodge Omni and the similar Plymouth Horizon were front wheel drive cars introduced by the Dodge and Plymouth divisions of the Chrysler Corporation in North America in 1978, and were based on a European Simca-based design of the same name...
and Plymouth Horizon. The front-wheel drive Omni and Horizon became instant hits, selling over 300,000 units each in their debut year, showing what was to come for Chrysler. Ironically, the Omni and Horizon had been designed alongside the Chrysler Horizon
Chrysler Horizon
The Horizon was a subcompact automobile developed by Chrysler Europe and was sold in Europe between 1977 and 1985 under the Chrysler, Simca and Talbot nameplates...
with much input from the Chrysler Europe division of the company, which Iacocca axed in 1978.
1980s
Realizing that the company would go out of business if it did not receive a significant amount of money to turn the company around, Iacocca approached the United States CongressUnited States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
on September 7, 1979 and asked for US$1.5 billion in loan guarantees. Congress reluctantly passed the "Chrysler Corporation Loan Guarantee Act of 1979" (Public Law 96-185) on December 20, 1979 (signed into law by President Jimmy Carter
Jimmy Carter
James Earl "Jimmy" Carter, Jr. is an American politician who served as the 39th President of the United States and was the recipient of the 2002 Nobel Peace Prize, the only U.S. President to have received the Prize after leaving office...
on January 7, 1980), prodded by Chrysler workers and dealers in every congressional district who feared the loss of their livelihoods. The military then bought thousands of Dodge pickup trucks which entered military service as the Commercial Utility Cargo Vehicle
Commercial Utility Cargo Vehicle
The Commercial Utility Cargo Vehicle or CUCV Program was instituted to provide the United States military with a cheaper Light Utility Vehicle to augment the purpose-built, but expensive, Gama Goats and M151 series "Jeeps" approaching the end of their service life. It initially provided Dodge D...
M-880 Series. With such help and a few innovative cars, Chrysler would manage to avoid bankruptcy and slowly recover.
After receiving this reprieve, Chrysler released the first of the K-Car
Chrysler K platform
The Chrysler Corporation's K-cars were compact-to-midsize cars designed to carry six adults on two bench seats and were aimed not only to replace Chrysler's nominally-compact F-body Aspen and Volaré, but also to compete with intermediates like the Chevrolet Malibu and Ford Fairmont...
line, the Dodge Aries
Dodge Aries
The Dodge Aries is an automobile sold by the Chrysler Corporation from 1981-1989. It replaced the Dodge Aspen as Dodge's family car with "mid-size room" in a size and front-wheel drive format commonly associated with compact cars...
and Plymouth Reliant
Plymouth Reliant
The Plymouth Reliant was one of the first two so-called "K-cars" manufactured by the Chrysler Corporation, introduced for the 1981 model year. The Reliant replaced the Plymouth Volaré/Road Runner, which was the short-lived successor automobile to the highly regarded Plymouth Valiant...
, in 1981. Like the minivan which would come later, these compact automobiles were based on design proposals that Ford had rejected during Iacocca's (and Sperlich's) tenure there. Since they were released in the middle of the major 1980-1982 recession, these small, efficient and inexpensive, front-wheel drive
Front-wheel drive
Front-wheel drive is a form of engine/transmission layout used in motor vehicles, where the engine drives the front wheels only. Most modern front-wheel drive vehicles feature a transverse engine, rather than the conventional longitudinal engine arrangement generally found in rear-wheel drive and...
cars sold rapidly.
In February 1982 Chrysler announced the sale of Chrysler Defense, its profitable defense subsidiary to General Dynamics
General Dynamics
General Dynamics Corporation is a U.S. defense conglomerate formed by mergers and divestitures, and as of 2008 it is the fifth largest defense contractor in the world. Its headquarters are in West Falls Church , unincorporated Fairfax County, Virginia, in the Falls Church area.The company has...
for US$348.5 million. The sale was completed in March 1982 for the revised figure of US$336.1 million.
Chrysler also introduced the minivan, which was by and large Sperlich's "baby," in the fall of 1983, which led the automobile industry in sales for 25 years Because of the K-cars and minivans, along with the reforms Iacocca implemented, the company turned around quickly and by 1983, was able to repay the government-backed loans several years ahead of time, resulting in a profit of $350 million to the U.S. government.
In 1987, it was discovered that Chrysler sold an estimated 32,750 cars that had been test-driven with disconnected odometer
Odometer
An odometer or odograph is an instrument that indicates distance traveled by a vehicle, such as a bicycle or automobile. The device may be electronic, mechanical, or a combination of the two. The word derives from the Greek words hodós and métron...
s - some as much as 500 miles (804.7 km) - before being shipped to dealers. The controversy gained fire after the United States Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
got involved, as Senator Sam Nunn
Sam Nunn
Samuel Augustus Nunn, Jr. is an American lawyer and politician. Currently the co-chairman and Chief Executive Officer of the Nuclear Threat Initiative , a charitable organization working to reduce the global threats from nuclear, biological and chemical weapons, Nunn served for 24 years as a...
bought one of the Chryslers in question. Chrysler settled out of court with complainants. Chrysler CEO Lee Iacocca
Lee Iacocca
Lido Anthony "Lee" Iacocca is an American businessman known for engineering the Mustang, the unsuccessful Ford Pinto, being fired from Ford Motor Company, and his revival of the Chrysler Corporation in the 1980s...
sought to minimize damage to the corporation's public image by calling a news conference in which he termed the action "dumb" and "unforgivable".
Chrysler was among the companies boycott
Boycott
A boycott is an act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest, usually for political reasons...
ed by gay rights groups
LGBT social movements
Lesbian, gay, bisexual, and transgender social movements share inter-related goals of social acceptance of sexual and gender minorities. Lesbian, gay, bisexual, and transgender people and their allies have a long history of campaigning for what is generally called LGBT rights, also called gay...
after removing advertisements from the ABC
American Broadcasting Company
The American Broadcasting Company is an American commercial broadcasting television network. Created in 1943 from the former NBC Blue radio network, ABC is owned by The Walt Disney Company and is part of Disney-ABC Television Group. Its first broadcast on television was in 1948...
sitcom Ellen
Ellen (TV series)
Ellen is a U.S. television sitcom that ran on the ABC network from March 29, 1994 to July 22, 1998, producing 109 episodes.The theme song, "So Called Friend" is by Scottish band Texas...
in 1997, which it deemed "controversial."
A joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
with Mitsubishi called Diamond Star Motors strengthened the company's hand in the small car market. Chrysler also acquired American Motors Corporation (AMC) in 1987, primarily for its Jeep
Jeep
Jeep is an automobile marque of Chrysler . The first Willys Jeeps were produced in 1941 with the first civilian models in 1945, making it the oldest off-road vehicle and sport utility vehicle brand. It inspired a number of other light utility vehicles, such as the Land Rover which is the second...
brand, although the failing Eagle Premier
Eagle Premier
The Eagle Premier was a full-size automobile developed by the American Motors Corporation and Renault partnership, inherited by Chrysler Corporation when it acquired AMC in 1987, and marketed from 1987 through 1992...
would be the basis for the Chrysler LH platform
Chrysler LH platform
The LH platform served as the basis for the Chrysler Concorde, Chrysler LHS, Chrysler 300M, Dodge Intrepid, Eagle Vision, and the final Chrysler New Yorker. A Plymouth to be called the "Accolade" was planned, but never saw production...
sedans. This bolstered the firm's size, but the American Motors purchase was saddled with $900 million in debt. Also, Chrysler was still the weakest of the Big Three. In 1987, Chrysler surprised the industry by purchasing Italian sports car maker Lamborghini
Lamborghini
Automobili Lamborghini S.p.A., commonly referred to as Lamborghini , is an Italian car manufacturer. The company was founded by manufacturing magnate Ferruccio Lamborghini in 1963, with the objective of producing a refined grand touring car to compete with established offerings from marques like...
, with the acquisition heavily driven by Iacocca. Lamborghini would subsequently be sold off in 1994.
Aside from small cars, Iacocca re-introduced the full sized Imperial as a company's flagship, new model had all of the newest technologies of the time - including fully electronic fuel injection (the first car in the U.S. to be so equipped) and all digital dashboard. Iacocca was also responsible for Chrysler's acquisition of AMC
American Motors
American Motors Corporation was an American automobile company formed by the 1954 merger of Nash-Kelvinator Corporation and Hudson Motor Car Company. At the time, it was the largest corporate merger in U.S. history.George W...
in 1987, which brought the profitable Jeep
Jeep
Jeep is an automobile marque of Chrysler . The first Willys Jeeps were produced in 1941 with the first civilian models in 1945, making it the oldest off-road vehicle and sport utility vehicle brand. It inspired a number of other light utility vehicles, such as the Land Rover which is the second...
division under Chrysler's corporate umbrella. It also created the short-lived Eagle division
Eagle (automobile)
Eagle was a marque of the Chrysler Corporation following the purchase of American Motors Corporation and aimed at the enthusiast driver.Though short-lived, the Eagle Vision sedan sold in respectable numbers, while the sporty Eagle Talon sold more than 115,000 units.-Overview:Following the...
, formed from the remnants of AMC. By this time, AMC had already finished most of the work with the Jeep Grand Cherokee
Jeep Grand Cherokee
The Jeep Grand Cherokee is a Mid-size SUV produced by the Jeep division of Chrysler. While some other SUVs were manufactured with body on frame construction, the Jeep Grand Cherokee has always used a unibody chassis.- Development :...
, which Iacocca desperately wanted. The Grand Cherokee would not be released until 1992 for the 1993 model year. That same year, Iacocca stepped down President, CEO and Chairman of Chrysler at the end of 1992.
1990s
Dodge Ram
The Dodge Ram is a full-size pickup truck manufactured by the Chrysler Group LLC. As of late 2010, it has been sold under the Ram Trucks brand. Previously, Ram was part of the Dodge lineup of light trucks...
pickup, Dodge Viper
Dodge Viper
The first prototype was tested in January 1989. It debuted in 1991 with two pre-production models as the pace car for the Indianapolis 500 when Dodge was forced to substitute it in place of the Japanese-built Stealth because of complaints from the United Auto Workers, and went on sale in January...
(badged as "Chrysler Viper" in Europe) sports car, and Plymouth Prowler
Plymouth Prowler
The Plymouth Prowler, later the Chrysler Prowler, is a "retro" styled production car built in 1997 and 1999-2002. The Prowler was based on the 1993 concept car of the same name.- Design :...
hot rod, and new "cab forward
Cab forward
The term cab forward refers to various rail and road vehicle designs which place the driver's compartment substantially farther towards the front than is common practice.- Rail locomotives :...
" front-wheel drive
Front-wheel drive
Front-wheel drive is a form of engine/transmission layout used in motor vehicles, where the engine drives the front wheels only. Most modern front-wheel drive vehicles feature a transverse engine, rather than the conventional longitudinal engine arrangement generally found in rear-wheel drive and...
LH
Chrysler LH platform
The LH platform served as the basis for the Chrysler Concorde, Chrysler LHS, Chrysler 300M, Dodge Intrepid, Eagle Vision, and the final Chrysler New Yorker. A Plymouth to be called the "Accolade" was planned, but never saw production...
sedans put the company in a strong position as the decade waned.
In 1995, former CEO Lee Iacocca assisted in billionaire Kirk Kerkorian
Kirk Kerkorian
Kerkor "Kirk" Kerkorian is an American businessman who is the president/CEO of Tracinda Corporation, his private holding company based in Beverly Hills, California. Kerkorian is known as one of the important figures in shaping Las Vegas and, with architect Martin Stern, Jr...
's hostile takeover of Chrysler, which was ultimately unsuccessful. The next year, Kerkorian and Chrysler made a five-year agreement that includes a gag order preventing Iacocca from speaking publicly about Chrysler.
Daimler Chrysler 1998-2007
Daimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...
and Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
had formed a 50-50 partnership. Chrysler Corporation then was legally renamed DaimlerChrysler Motors Company LLC, while its total operations began doing business as Chrysler Group. This was initially declared to be a merger of equals, but it became evident that once Chrysler Chairman and CEO Bob Eaton retired, that Daimler would take majority control. Other executives like President Thomas T. Stallkamp, once considered the heir-apparent of Eaton, and Vice-Chairman Robert Lutz were soon forced out. Eaton, Stallkamp, and Lutz had been described as the "triumvirate" responsible for Chrysler's successes in the late 1990s, with much credit going to Lutz's platform design teams. Daimler-Benz got the remainder of Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
, excluding the Eagle
Eagle (automobile)
Eagle was a marque of the Chrysler Corporation following the purchase of American Motors Corporation and aimed at the enthusiast driver.Though short-lived, the Eagle Vision sedan sold in respectable numbers, while the sporty Eagle Talon sold more than 115,000 units.-Overview:Following the...
brand, which was facing extinction at the time.
Then-Daimler-Benz CEO Juergen Schrempp had "promised a marriage made in heaven and huge synergies". However, it proved to be a disaster for Daimler, which poured billions of dollars into Chrysler, draining management and resources, and repeatedly dragging down its Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
luxury vehicle subsidiary. Chrysler President James P. Holden was responsible for misjudging the launch of the all-new 2001 minivan
Minivan
Minivan is a type of van designed for personal use. Minivans are typically either two-box or one box designs for maximum interior volume – and are taller than a sedan, hatchback, or a station wagon....
that resulted in an expensive surplus of 2000 models, losing considerable market share to rivals (Chrysler had created and long dominated the minivan market), and also underestimated demand for the surprisingly popular PT Cruiser, resulting in a $512 million third-quarter loss in 2000 that led to his firing later that year.
Dieter Zetsche
Dieter Zetsche
Dieter Zetsche is a German businessman and the Chairman of Daimler AG and Head of Mercedes-Benz Cars since 2006 as well as member of the company's Board of Management since 1998....
was appointed CEO of the Chrysler Group in 2000. The Plymouth
Plymouth (automobile)
Plymouth was a marque of automobile based in the United States, produced by the Chrysler Corporation and its successor DaimlerChrysler.-Origins:...
brand was phased out in 2001, and plans for cost cutting by sharing of platforms and components began. The Mercedes-based Chrysler Crossfire
Chrysler Crossfire
The Chrysler Crossfire is a rear-wheel drive sports car marketed by Chrysler as both coupé and roadster and was built for Chrysler by Karmann of Germany.-Design:...
was one of the first results of this program. A return to rear-wheel drive was announced, and in 2004 a new line of full size cars, spearheaded by the Chrysler 300
Chrysler 300
The Chrysler 300 is a full-size upscale car first shown at the 2003 New York Auto Show as a concept car. Sales in the U.S. began in the spring of 2004 as an early 2005 model year car. Designed by Ralph Gilles, the new 300 was built as a high-end sedan while the SRT-8 model was designed to be the...
using some Mercedes-Benz technology and a new HEMI V8 engine appeared and was successful. The partnership with Mitsubishi
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...
was dissolved as DaimlerChrysler divested its stake in the firm. Financial performance improved and Chrysler was generating a significant part of Daimler-Chrysler's profits from 2004 to 2005, as the other subsidiary, Mercedes-Benz, incurred costs for restructuring. By 2005, Chrysler was said to be the healthiest of the Detroit Three automakers (compared to General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
and Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
).
As a result of Zetsche's apparent success in a turnaround of Chrysler, Juergen Schrempp, the CEO of parent company Daimler-Chrysler, was pressured to retire early. Zetsche was elevated to CEO of Daimler-Chrysler on January 1, 2006, and Thomas W. LaSorda
Thomas W. LaSorda
Thomas W. LaSorda, often known as Tom LaSorda, is a Canadian-American automobile industry executive who served as CEO and President of the Chrysler Group....
became President and CEO of Chrysler Group. However, in 2006, while DCX's other subsidiary Mercedes-Benz turned a profit, Chrysler swung to a loss and analysts believed that the profitable years of 2004-05 would be unlikely to be return in the future. That led to suggestions that the eight-year merger would come to an end, as Mercedes (which made up around 33% of Daimler's $200 billion in 2006 revenues) did not get any competitive boost from Chrysler, and that Daimler would be a stronger and more profitable group without the U.S. unit. Zetsche admitted that Chrysler offered no serious scale of advantages, though he initially insisted a spinoff was not being considered and said that management's first priority is to fix the problems at Chrysler by trimming production and redoubling efforts to boost its competitiveness.
Some suggest that Zetsche's tenure was a mixed success, with Chrysler still relying heavily on gas-guzzling SUVs, and most of its product lineup was unsuccessful, despite using Mercedes-derived technologies. Despite radical restructuring and improved models, analysts said that it was difficult to expect a solid recovery at Chrysler, due to the negative dynamics of the U.S. auto market and Chrysler's legacy labor and health care costs. In 2006, Zetsche had starred in the "Dr. Z" ad campaign which cast him as an all-knowing, German-accented wizard of the auto industry, in TV spots and a website. The strategy was to communicate that Chrysler was backed up by the same Teutonic know-how and discipline that has long made Mercedes-Benz one of the world's most prestigious brands. However, the campaign was moth-balled in 2007. Eight years since the merger, most customers did not know that Chrysler was owned by the same company that also produces Mercedes-Benz luxury cars. Some surveyed thought Zetsche was so smooth on screen—even to the point of head-butting a soccer ball perfectly in one take—that he was an actor and not the actual CEO.
Chrysler sale to Cerberus 2007-2009
Der Spiegel
Der Spiegel is a German weekly news magazine published in Hamburg. It is one of Europe's largest publications of its kind, with a weekly circulation of more than one million.-Overview:...
, CEO Dieter Zetsche expressed a desire to dismantle Chrysler and sell off the majority stake and at the same time keep Chrysler "dependent" upon Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
after the sale. On April 4, 2007, Zetsche said that the company was negotiating the sale of Chrysler, which was rumored for weeks before the announcement. The following day investor Kirk Kerkorian
Kirk Kerkorian
Kerkor "Kirk" Kerkorian is an American businessman who is the president/CEO of Tracinda Corporation, his private holding company based in Beverly Hills, California. Kerkorian is known as one of the important figures in shaping Las Vegas and, with architect Martin Stern, Jr...
placed a 4.5 billion dollar bid for Chrysler. On April 12, Magna International
Magna International
Magna International Inc. , is an automotive supplier headquartered in Aurora, Ontario, Canada. It is Canada's largest automobile parts manufacturer, and one of the country's largest companies. It owns the Magna Steyr automobile production company of Austria....
of Canada announced it was searching for partners to place a bid for Chrysler. Magna's offer was later outbid.
DaimlerChrysler AG announced on May 14, 2007 that it would sell 80.1% of its stake in the Chrysler Group to Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
for US$7.4 billion. Chrysler Group (DaimlerChrysler Corporation) would officially become Chrysler Holding LLC (changed to Chrysler LLC upon completion of the sale), with two subsidiaries – Chrysler Motors LLC (new name of DaimlerChrysler Motors Company), which produces Chrysler/Dodge/Jeep vehicles, and Chrysler Financial Services LLC (new name of DaimlerChrysler Financial Services Americas LLC), which took over the operations of Chrysler Financial. DaimlerChrysler AG changed its name to Daimler AG.
Chrysler LLC unveiled a new company logo, a variation of the previously used Pentastar logo, and launched its new website on August 6, 2007. Robert Nardelli
Robert Nardelli
Robert Louis "Bob" Nardelli was the chairman and chief executive officer of Chrysler. He had earlier served in a similar capacity at The Home Depot from December 2000 to January 2007. Prior to that, Nardelli had risen to become one of the top four executives at General Electric...
became Chairman and CEO. In the resulting management shuffle, LaSorda was relegated to the number two position as President and Vice Chairman of Chrysler LLC, Jim Press
Jim Press
James E. Press is the former Deputy CEO of Chrysler Group LLC serving in that capacity from June to December 2009.Previously, Mr. Press served as Co-President of Chrysler LLC, President of Toyota Motor Sales, U.S.A., Inc. and Daimler AG. He served as President of Sales & Marketing Operations of...
, previously President of Toyota Motor Sales, U.S.A., Inc.
Toyota Motor Sales, U.S.A., Inc.
Toyota Motor Sales, U.S.A., Inc. is the Toyota sales, marketing, and distribution subsidiary devoted to the U.S. market. Founded in 1957 in California, TMS currently employs more than 6,500 people...
, was appointed Co-President and Vice Chairman. While LaSorda's titles at Chrysler LLC officially stated that he was in charge of manufacturing, procurement and supply, employee relations, global business development and alliances, his actual role in the company was largely to find a new partner or buyer for Chrysler. Cerberus Capital was said to be less interested in rebuilding the auto manufacturer as a long-term investment, rather it was focused on turning a short-term profit though a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
.
The new company experienced its first labor dispute on October 10, 2007. A strike deadline of 11 a.m. had been set by the United Auto Workers
United Auto Workers
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers , is a labor union which represents workers in the United States and Puerto Rico, and formerly in Canada. Founded as part of the Congress of Industrial...
(UAW) union leadership pending successful negotiation of a new contract patterned after the pact with GM. As the talks progressed past the deadline, most Chrysler unionized workers walked off their jobs. With media speculation about the impact of a long strike, an impromptu announcement after 5 p.m. the same day indicated that a tentative agreement had been reached, thus ending the walkout after just over six hours.
Chrysler collaborates with Tata Motors Limited
Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO...
of India: Tata's all-electric Ace
Tata Ace
The Tata Ace is a mini-truck launched in May 2005 by Tata Motors in India. It is in competition with the prevalent three-wheeled goods carriers from Bajaj Auto, Piaggio, Mahindra and Force Motors.-History:...
mini truck will be sold through Chrysler's Global Electric Motorcars
Global Electric Motorcars
Global Electric Motorcars , a wholly owned subsidiary of Polaris Industries, is a U.S. manufacturer in the low-speed vehicle category, producing neighborhood electric vehicles since 1998 and has sold more than 45,000 GEM battery-electric vehicles worldwide as of December 2010.Until June 2011, GEM...
division. Chrysler announced in February 2008 that it would be reducing its product line from 30 models to 15 models. Chrysler was reported in August 2008 to be in talks with Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
.
2008 financial crisis
In October 2008, Cerberus and General MotorsGeneral Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
discussed an exchange of GM's 49% stake in GMAC for Chrysler, potentially merging two of Detroit's "Big Three" automakers. These talks did not come to fruition, and were discontinued the next month. On October 24, 2008, Chrysler announced a 25% cut (5,000 jobs) in its salaried and contract workforce in November 2008. Michigan Gov. Jennifer Granholm announced that she, along with 5 other governors, sent a letter to Treasury Secretary Henry Paulson
Henry Paulson
Henry Merritt "Hank" Paulson, Jr. is an American banker who served as the 74th United States Secretary of the Treasury. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.-Early life and family:...
and Federal Reserve Chairman Ben Bernanke
Ben Bernanke
Ben Shalom Bernanke is an American economist, and the current Chairman of the Federal Reserve, the central bank of the United States. During his tenure as Chairman, Bernanke has overseen the response of the Federal Reserve to late-2000s financial crisis....
requesting emergency funding for the Detroit Big Three
Big three
Big Three is a term used colloquially to refer to the three most prominent entities in any given grouping or subject.It may refer to:- People :* The leaders of the three major Allies of World War I: David Lloyd George, Georges Clemenceau, and Woodrow Wilson...
Automakers. On the same day, General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
asked the Treasury Department of the United States for $10 billion to help restructure both their company and possible future sibling, Chrysler so that in turn, they can become one massive company.
On October 23, 2008, Daimler announced that its stake in Chrysler had a book value of zero dollars after write offs and charges.
On November 5, 2008 it was published that Chrysler sales in the US market have fallen 34.9 percent in only 12 months. A week later, Chrysler CEO Robert Nardelli said, in a speech at an Ernst & Young
Ernst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
conference, that the company can only remain viable by forming an alliance with another automaker, domestic or global, as well as receiving government assistance in the form of an equity stake
Ownership equity
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...
. Several days later, Chrysler together with Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
and General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, sought financial aid at a Congressional hearing in Washington D.C. in the face of worsening conditions caused by the automotive industry crisis. All three companies were unsuccessful and were invited to draft a new action plan for the sustainability of the industry.
At the beginning of December 2008, amid the 2008 automobile crisis, Chrysler announced that they were dangerously low on cash and may not survive past 2009. After the defeat of the auto bailout in the Senate, Chrysler stated that they would most likely file for bankruptcy and shut down all operations permanently. On December 17, 2008, Chrysler announced that it planned to halt production at all 30 of its manufacturing plants through January 19, 2009. In addition, Chrysler Financial announced that it would charge fees on dealers holding inventories of new cars and trucks that are unsold after more than 360 days, and will require immediate payment of all remaining balances on inventories of used vehicles that remain unsold after six months. On December 19, President George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
announced a $13.4 billion rescue loan for the American automakers, including Chrysler.
Chrysler's 2008 performance was hard hit among the Big Three U.S. automakers, with 398,119 automobiles and 1,055,003 trucks sold during the year.
On March 13, 2009, LaSorda told the Canadian House of Commons
Canadian House of Commons
The House of Commons of Canada is a component of the Parliament of Canada, along with the Sovereign and the Senate. The House of Commons is a democratically elected body, consisting of 308 members known as Members of Parliament...
finance committee that the initial GM-CAW deal was insufficient and that Chrysler would demand an hourly wage cut of $20, breaking the Canadian Autoworkers's negotiating pattern set by GM. He suggested that Chrysler may withdraw from Canada if it fails to achieve more substantial cost savings from the CAW. Fiat CEO Sergio Marchionne
Sergio Marchionne
Sergio Marchionne is an international manager best known for his turnaround of the Italian automotive group Fiat and, more recently, for managing the US automotive group Chrysler from bankruptcy to profitability...
had also threatened to walk away from the merger if the CAW did not make sufficient concessions to match the wages of the "transplants" (foreign automaker's US and Canadian plants), which the union eventually agreed to by cutting benefits. Chrysler LLC has since filed for bankruptcy, though Fiat would continue to implement the strategic alliance.
On March 7, 2009, Chrysler Vice-Chairman Jim Press
Jim Press
James E. Press is the former Deputy CEO of Chrysler Group LLC serving in that capacity from June to December 2009.Previously, Mr. Press served as Co-President of Chrysler LLC, President of Toyota Motor Sales, U.S.A., Inc. and Daimler AG. He served as President of Sales & Marketing Operations of...
stated that current sales volume is sufficient to keep the company going as sales should rise in the coming months. The Chrysler executive also noted the automaker’s February retail sales were better than Ford’s as Chrysler continued to curtail lower-margin fleet sales. He also said the volumes being forecast for 2009 are within the estimates Chrysler envisioned in preparing its viability plan for the federal government.
On March 30, 2009, the White House
White House
The White House is the official residence and principal workplace of the president of the United States. Located at 1600 Pennsylvania Avenue NW in Washington, D.C., the house was designed by Irish-born James Hoban, and built between 1792 and 1800 of white-painted Aquia sandstone in the Neoclassical...
announced it would provide an additional $6 billion in further support to Chrysler contingent on the company finalizing an alliance with Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
before the end of April .
US Government backing of warranties
On March 30, 2009 President Barack Obama issued a US Government guarantee of Chrysler's warranty liabilities, and publicly stated the U.S. Government will back the warranties on Chrysler vehicles if the company were to go out of business.Chapter 11 reorganization
On January 20, 2009, the Italian Fiat S.p.A.Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
and Chrysler LLC announced that they have a non-binding term sheet to form a global alliance. Under the terms of the potential agreement, Fiat could take a 35% stake in Chrysler and gain access to its North American dealer network in exchange for providing Chrysler with the platform to build smaller, more fuel-efficient vehicles in the US and reciprocal access to Fiat's global distribution network.
By mid-April, as talks intensified between the two automakers to reach an agreement by a government-imposed deadline of April 30, Fiat's initial stake was reported to be 20% with some influence on the structure of top management of the company.
However, Fiat has warned that the merger would not take place if Chrysler fails to reach an agreement with the UAW and the Canadian Auto Workers' Union. On April 26, 2009, it appeared as if Chrysler had reached a deal with the unions which would meet federal requirements, though details were not made available. Chrysler said the union agreement “provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U.S. Treasury Department.”
Chrysler filed for chapter 11 bankruptcy protection
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
at the Federal Bankruptcy Court of the Southern District of New York, in Manhattan, on April 30, 2009, and announced an alliance with Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
.
Both the White House and Chrysler expressed hope for a "surgical" bankruptcy lasting 30 to 60 days, with the result of reducing the company's liabilities and post-bankruptcy emergence in stronger financial shape. The submitted court documents indicated that there would be a reorganization plan presented to the court in 120 days, on August 28, 2009. A White House official indicated that the government would provide debtor-in-possession financing
Debtor-in-possession financing
Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this security is more senior than debt, equity, and any other securities issued by a company...
for between $US 3 billion to $US 3.5 billion, and upon a completion of Chrysler bankruptcy restructuring and court proceedings, the company would be eligible to receive up to $US 4.5 billion in financing to resume operations, for total of $US 8 billion of government support. Prior to the bankruptcy filing, Chrysler had received $US 4.5 billion in financing from the U.S. government, under a George W. Bush administration plan, in December 2008, after Congress declined to approve legislation to provide federal loans. Chrysler announced on the day of the bankruptcy filing, that during the restructuring, it would cease most manufacturing operations on May 4, 2009, and resume production “when the transaction is completed, which is anticipated within 30 to 60 days.”
On May 1, 2009, Chrysler LLC filed for bankruptcy, and LaSorda stepped down as President and Vice-Chairman and retired, despite Fiat urging him to stay on.
On May 14, 2009 Chrysler filed with the bankruptcy court to terminate the dealership agreements of 789, or about 25% of its dealerships.
On June 1, 2009 a US bankruptcy court approved a plan which spells out that the new Chrysler company called "Chrysler Group LLC". The VEBA
Voluntary Employee Beneficiary Association
A voluntary employees' beneficiary association is a form of trust fund permitted under American tax law whose sole purpose must be to provide employee benefits...
formed by the United Auto Workers Union to provide health care for Chrysler retirees will hold 55 %. Minority stakes will be held by Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
(20 %) and the US (8 %) and Canadian (2 %) governments. Fiat has stated it plans to increase its share to 35 % if Chrysler meets certain goals.
On June 8, 2009, Supreme Court Associate Justice Ruth Bader Ginsburg, who is assigned to emergency motions arising from the United States Appeals Court for the Second Circuit, in a one-sentence order, stayed the orders of the bankruptcy judge allowing the sale, pending further order by Justice Ginsburg or the Supreme Court.
On June 9, 2009, the Supreme Court published its denial of the applications for a stay of the sale from the three Indiana funds, allowing the sale of assets to "New Chrysler" to proceed.
According to the two page decision and order, the Indiana funds “have not carried the burden” of demonstrating that the Supreme Court needed to intervene. The U.S. Department of the Treasury issued a statement saying: “We are gratified that not a single court that reviewed this matter, including the U.S. Supreme, found any fault whatsoever with the handling of this matter by either Chrysler or the U.S. government.” The proposed sale of assets is scheduled to close on Wednesday, June 10, 2009, when the money to finance the deal is wired by the government. Fiat will receive equity in the New Chrysler through its contribution of automobile platforms as a base for a new line of Chrysler cars.
On June 10, 2009, 41 days after filing for bankruptcy protection, the sale of most of Chrysler assets to "New Chrysler", formally known as Chrysler Group LLC, was completed. The federal government financed the deal with US$ 6.6 billion in financing, paid to the "Old Chrysler", formally called Old Carco LLC.
The transfer does not include eight manufacturing locations, nor many parcels of real estate, nor equipment leases. Contracts with 789 U.S. auto dealerships, who are being dropped, were not transferred.
Fiat ownership of Chrysler Group
Auburn Hills, Michigan
Auburn Hills is a city in Metro Detroit, Oakland County, in the U.S. state of Michigan. The population was 21,412 at the 2010 census. The city was formed in 1983 when Pontiac Township became the City of Auburn Hills.-Economy:...
, became majority owned by the United Auto Workers
United Auto Workers
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers , is a labor union which represents workers in the United States and Puerto Rico, and formerly in Canada. Founded as part of the Congress of Industrial...
Voluntary Employee Beneficiary Association
Voluntary Employee Beneficiary Association
A voluntary employees' beneficiary association is a form of trust fund permitted under American tax law whose sole purpose must be to provide employee benefits...
trust. In June 2009 Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
took control of Chrysler as a part of Chrysler's restructuring plan, and eventually gained 30% total stake in the company. Fiat plans to increase its stake to 51% but cannot do so until Chrysler has paid back all of its debts to the U.S. Government. Fiat stated plans for the Chrysler brand and Lancia
Lancia
Lancia Automobiles S.p.A. is an Italian automobile manufacturer founded in 1906 by Vincenzo Lancia and which became part of the Fiat Group in 1969. The company has a long history of producing distinctive cars and also has a strong rally heritage. Some modern Lancias are seen as presenting a more...
to codevelop products, with some vehicles being shared. Olivier Francois, Lancia's CEO, took over as CEO of the Chrysler
Chrysler (division)
Chrysler is the flagship brand of Chrysler Group LLC, named after founder Walter P. Chrysler.-Overview:The Chrysler brand was originally a premium luxury position competing with Cadillac and Lincoln, owned respectively by Chrysler Group's Detroit rivals, General Motors and Ford Motor Company...
division in October 2009. Fiat has stated that, depending on the market, some Chrysler cars will be sold as Lancias and vice versa. Francois plans to reestablish the Chrysler brand as an upscale brand, a position somewhat muddied since the K-car era in the 80's, and especially after the Plymouth
Plymouth (automobile)
Plymouth was a marque of automobile based in the United States, produced by the Chrysler Corporation and its successor DaimlerChrysler.-Origins:...
brand was discontinued. At the 2010 Detroit Auto Show, A Chrysler badged Lancia Delta
Lancia Delta
The Lancia Delta is a small family car produced by Italian automaker Lancia with the first generation being produced between 1979 and 1994, the second generation running from 1993 until 1999, and the third generation Delta entering production in 2008. It was first shown inFrankfurt Motor Show in 1979...
was on display, likely the first Lancia to be sold as a Chrysler and possibly as a replacement for the Chrysler PT Cruiser
Chrysler PT Cruiser
The Chrysler PT Cruiser is a retro styled compact automobile launched by Chrysler as a 5-door hatchback in early 2000 and as a 2-door convertible in early 2005 ....
. Dodge, Jeep, Chrysler get makeover by refreshing, redesigning or replacing every car and truck, swapping out engines and creating vehicles people want. By 2012, Chrysler will have overhauled or replaced its entire lineup.
Timeline of Chrysler
- Maxwell Motor Company, 1904–1925
- Chrysler Corporation, 1925–1998
- DaimlerChrysler AG, 1998–2007
- Chrysler LLC, 2007–2009
- Chrysler Group LLC, 2009–present
Medallion logo
With its inception in 1925, Chrysler's logo was a round medallion with a ribbon bearing the name CHRYSLER in uppercase block lettersForward Look
Virgil Exner
Virgil Max "Ex" Exner, Sr. was an automobile designer for numerous American companies, notably Chrysler and Studebaker. He is known for his "Forward Look" design on the 1955-1963 Chrysler products and his fondness of fins on cars for both aesthetic and aerodynamic reasons.-Early life:Born in Ann...
's radical "Forward Look
Forward Look
Forward Look was a design theme employed by Virgil Exner in styling the 1955 through 1961 Chrysler Corporation vehicles.When Exner joined Chrysler, the company's vehicles were being fashioned by engineers instead of designers, and so were considered outmoded, unstylish designs...
" redesign of Chrysler Corporation's vehicles for the 1955 model year was underscored by the company's adoption of a logo by the same name. The Forward Look logo consisted of two overlapped boomerang shapes, suggesting space age
Space Age
The Space Age is a time period encompassing the activities related to the Space Race, space exploration, space technology, and the cultural developments influenced by these events. The Space Age is generally considered to have begun with Sputnik...
rocket-propelled motion.
Pentastar
Divisional logos such as Dodge's Fratzog were gradually phased out until, by 1981, all Chrysler divisions used only the Pentastar. All vehicle brands and all the other Chrysler divisions and services—air conditioning systems, heating, industrial engines, marine engines, outboard motors, boats, transmissions, four-wheel drive
Four-wheel drive
Four-wheel drive, 4WD, or 4×4 is a four-wheeled vehicle with a drivetrain that allows all four wheels to receive torque from the engine simultaneously...
systems, powdered metal products, adhesives, chemical products, plastics, electronics, tanks, missiles, leasing, finance and auto parts—were identified by the Pentastar.
The Pentastar logo was placed on the lower passenger-side fender
Fender (automobile)
Fender is the US English term for the part of an automobile, motorcycle or other vehicle body that frames a wheel well . Its primary purpose is to prevent sand, mud, rocks, liquids, and other road spray from being thrown into the air by the rotating tire. Fenders are typically rigid and can be...
of all Chrysler products, including non-US brands, from 1963 into the 1972 model year. It was placed on the passenger-side fender so it could be viewed by passers-by, a subtle method of getting the symbol ingrained in the public's mind: a nameplate has to be read, but a symbol is quickly recognizable without reading. Thus left-hand drive cars had the Pentastar on the right fender, while right-hand drive cars had it on the left. Starting in the 1980s, hood ornament
Hood ornament
A hood/bonnet ornament, or radiator cap, or car mascot is a specially crafted model of something which symbolizes a car company like a badge, located on the front center portion of the hood...
s on Chrysler-brand vehicles used a gem-like version of the pentastar to signify the brand's upscale status.
The Pentastar's final badging appearance was on rare versions of the 1996 Plymouth Voyager
Plymouth Voyager
In 1984, the Voyager name was applied to Plymouth's variant of Chrysler's all new minivan. This Voyager used the Chrysler S platform, which was derived from the K-platform . In addition to using a derived platform, the Voyager shared many components with the K-cars, most notably the interior...
. It was also applied to the steering wheel, keys, and fenders of the Voyager and the other
Chrysler NS minivans into 2000.
The Pentastar continued to represent Chrysler until the merge with Daimler in 1998, when it was retired. Among the few remaining traces of this motif was a large, star-shaped window at DaimlerChrysler's American headquarters
Chrysler Headquarters and Technology Center
The Chrysler Headquarters and Technology Center is the world headquarters and main research and development facility for the automobile manufacturer Chrysler Group LLC. It is located in the Metro Detroit suburb of Auburn Hills, Michigan, USA. Completed in 1996, the complex has on located near I-75...
in Auburn Hills, Michigan
Auburn Hills, Michigan
Auburn Hills is a city in Metro Detroit, Oakland County, in the U.S. state of Michigan. The population was 21,412 at the 2010 census. The city was formed in 1983 when Pontiac Township became the City of Auburn Hills.-Economy:...
, and pentastar aviation
Pentastar aviation
Pentastar Aviation is an American aviation services company based in Waterford, Michigan. It provides domestic and international charter flights, avionics, maintenance services, in-flight catering and FBO services. Originally a subsidiary of the Chrysler Corporation, the company was sold in 2001...
, a former DaimlerChrysler subsidiary which reverted to its original name after being purchased by a member of the Ford family. Many dealerships still have signage and other traces still visually apparent to the Pentastar, where a five-Pentastar logo remains in use as the logo of the "Five Star Dealer" service rank.
Despite having been officially retired under Daimler, the Pentastar continued to be used as the identifying trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
or logo
Logo
A logo is a graphic mark or emblem commonly used by commercial enterprises, organizations and even individuals to aid and promote instant public recognition...
on Chrysler Group parts, as seen on window glass, on individual components, molded plastic assemblies, and larger parts such as (reportedly) engine blocks.
Return of divisional logos
Divisional logos began to supplant the companywide Pentastar application in the early 1990s. The Dodge division phased in a ram's-head logo beginning with the 1993 IntrepidDodge Intrepid
The Dodge Intrepid is a large four-door, full-size, front-wheel drive sedan car model that was produced for model years 1993 to 2004. It was mechanically related to the Chrysler Concorde, Chrysler LHS, Chrysler New Yorker, Eagle Vision, and also the 300M sedans...
and Spirit
Dodge Spirit
The Dodge Spirit is a mid-size 5- or 6-passenger sedan that was introduced in January 1989 as a replacement for the similarly sized Dodge 600. The Spirit was Dodge's version of the Chrysler AA platform, a stretched variation of the Chrysler K platform...
. The Chrysler brand began using a medallion based on its original logo starting with the 1995 Cirrus
Chrysler Cirrus
The Chrysler Cirrus was a mid-size 4-door sedan, introduced for the 1995 model year as direct replacement for the aging Chrysler LeBaron sedan. Based on the new midsize JA platform, the Cirrus was sold in the United States, Canada, Mexico, and Brazil for the 1995-2000 model years; DaimlerChrysler ...
, Concorde
Chrysler Concorde
The Chrysler Concorde was a large four-door, full-size, front wheel drive sedan produced by Chrysler from 1993 to 2004. It replaced the Chrysler Fifth Avenue on the lineup. One of Chrysler's 3 original Chrysler LH platform models derived from the American Motors/Renault-designed Eagle Premier, it...
, and Sebring
Chrysler Sebring
The Chrysler Sebring is a line of mid-size cars that was sold by Chrysler from 1995 to 2010.The Sebring came in three generations. The first, from 1995 to 2000, was available first only as a coupe and starting in 1996 as a convertible. The two body designs did not share many components nor any...
. This logo was applied to all Chryslers by 1996. That same year, Plymouth adopted a new sailboat logo, which was a simplified version of the brand's pre-Pentastar Mayflower
Mayflower
The Mayflower was the ship that transported the English Separatists, better known as the Pilgrims, from a site near the Mayflower Steps in Plymouth, England, to Plymouth, Massachusetts, , in 1620...
ship logo.
Winged logo
