The history of Chrysler involves engineering
innovation
Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity ...
s, high
finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ...
, wide alternations of
profits and losses, various
mergers and acquisitions
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
, and
multinationalization. Chrysler, a large
automobile manufacturer
The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industries by revenue (from 16 % such ...
, was founded in the 1920s and continues under the name
Stellantis
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 on the basis of a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The comp ...
North America.
History
Origins
Chrysler was founded by
Walter Chrysler
Walter Percy Chrysler (April 2, 1875 – August 18, 1940) was an American industrial pioneer in the automotive industry, American automotive industry executive and the founder and namesake of American Chrysler Corporation.
Early life
Chrysler wa ...
on June 6, 1925, when the
Maxwell Motor Company
Maxwell was an American automobile manufacturer which ran from about 1904 to 1925. The present-day successor to the Maxwell company was Chrysler (currently, "Stellantis North America"), which acquired the company in 1925.
History Maxwell-Briscoe ...
(est. 1904) was re-organized into the Chrysler Corporation.
Walter Chrysler had originally arrived at the ailing Maxwell-
Chalmers 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 (pronounced , "Willis" )
was a brand name used by Willys–Overland Motors, an American automobile company, founded by John North Willys. It was best known for its design and production of World War II era and later military jeeps (MBs ...
car company.)
In late 1923 production of the Chalmers automobile was ended.
Then in January 1924, Walter Chrysler launched an
eponym
An eponym is a person, a place, or a thing after whom or which someone or something is, or is believed to be, named. The adjectives which are derived from the word eponym include ''eponymous'' and ''eponymic''.
Usage of the word
The term ''epon ...
ous automobile. The Chrysler 70
(also called the
B-70) was a 6-cylinder automobile, 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
A prototype is an early sample, model, or release of a product built to test a concept or process. It is a term used in a variety of contexts, including semantics, design, electronics, and Software prototyping, software programming. A prototyp ...
which had been under development at Willys at the time Chrysler was there).
Engineering innovations
The original 1924 Chrysler included a carburetor
air filter
A particulate air filter is a device composed of fibrous, or porous materials which removes solid particulates such as dust, pollen, mold, and bacteria from the air. Filters containing an adsorbent or catalyst such as charcoal (carbon) may als ...
, high-
compression
Compression may refer to:
Physical science
*Compression (physics), size reduction due to forces
*Compression member, a structural element such as a column
*Compressibility, susceptibility to compression
* Gas compression
*Compression ratio, of a ...
engine, full
pressure lubrication inside the engine, and an
oil filter
An oil filter is a filter designed to remove contaminants from engine oil, transmission oil, lubricating oil, or hydraulic oil. Their chief use is in internal-combustion engines for motor vehicles (both on- and off-road ), powered aircraft, r ...
, at a time when most autos came without all these features.
Among the innovations in its early years would be the first practical mass-produced four-wheel
hydraulic brake
A hydraulic brake is an arrangement of braking mechanism which uses brake fluid, typically containing glycol ethers or diethylene glycol, to transfer pressure from the controlling mechanism to the braking mechanism.
History
During 1904, Frederick ...
s, a system nearly completely engineered by Chrysler with patents assigned to
Lockheed. Chrysler
pioneered rubber engine mounts to reduce vibration;
Oilite Oilite is a brand of self-lubricating bearing that is made from metal alloys with pores that channel lubricants between the bearing itself and the shaft. It is manufactured from different types of material. Traditional Oilite is mostly made of copp ...
bearings; and
superfinishing Superfinishing, also known as micromachining, microfinishing, 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 la ...
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
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
was dropped after the 1925
model year
The model year (sometimes abbreviated "MY") is a method of describing the version of a product which has been produced over multiple years. The model year may or may not be the same as the calendar year in which the product was manufactured.
...
. The new, lower-priced
4-cylinder
The engine configuration describes the fundamental operating principles by which internal combustion engines are categorized.
Piston engines are often categorized by their cylinder layout, valves and camshafts. Wankel engines are often categorize ...
Chrysler introduced for 1926 year was a
badge-engineered
In the automotive industry, rebadging is a form of market segmentation used by automobile manufacturers around the world. To allow for product differentiation without designing or engineering a new model or brand (at high cost or risk), a manu ...
Maxwell.
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.
Early models
*
Chrysler 70
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automotiv ...
*
Chrysler Touring
The Chrysler Six was a series of cars that were all installed with the Chrysler Straight Six when the company assumed operations of the Maxwell Automobile Company in 1924, and Chalmers Automobile Company in 1926. The Chrysler Six initially cons ...
Vehicle marques
![Plymouth PA De Luxe 4-Door Sedan 1931](https://upload.wikimedia.org/wikipedia/commons/d/d3/Plymouth_PA_De_Luxe_4-Door_Sedan_1931.jpg)
In 1928, Chrysler Corporation began dividing its vehicle offerings by price class and function. The
Plymouth
Plymouth () is a port city and unitary authority in South West England. It is located on the south coast of Devon, approximately south-west of Exeter and south-west of London. It is bordered by Cornwall to the west and south-west.
Plymouth ...
brand was introduced at the low priced end of the market (created essentially by once again reworking and
rebadging
In the automotive industry, rebadging is a form of market segmentation used by automobile manufacturers around the world. To allow for product differentiation without designing or engineering a new model or brand (at high cost or risk), a manu ...
Chrysler's 4-cylinder model).
At the same time, the
DeSoto marque was introduced in the medium-price field. Shortly thereafter, Chrysler bought the
Dodge Brothers
Dodge is an American brand of automobiles and a division of Stellantis, based in Auburn Hills, Michigan. Dodge vehicles have historically included performance cars, and for much of its existence Dodge was Chrysler's mid-priced brand above Ply ...
automobile and truck company and launched the
Fargo range of trucks. By the late 1930s, the DeSoto and
Dodge
Dodge is an American brand of automobiles and a division of Stellantis, based in Auburn Hills, Michigan. Dodge vehicles have historically included performance cars, and for much of its existence Dodge was Chrysler's mid-priced brand above P ...
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
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
. Beginning in 1955,
Imperial
Imperial is that which relates to an empire, emperor, or imperialism.
Imperial or The Imperial may also refer to:
Places
United States
* Imperial, California
* Imperial, Missouri
* Imperial, Nebraska
* Imperial, Pennsylvania
* Imperial, Texa ...
, formerly the
top model
''Top Model,'' also called ''Next Top Model,'' is a fashion-themed reality television show format produced in many countries throughout the world and seen in over 120 countries producing over 200 seasons, which are referred to as "cycles". T ...
of the Chrysler brand, became a separate make of its own, and in 1960, the
Valiant 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
Imperial is that which relates to an empire, emperor, or imperialism.
Imperial or The Imperial may also refer to:
Places
United States
* Imperial, California
* Imperial, Missouri
* Imperial, Nebraska
* Imperial, Pennsylvania
* Imperial, Texa ...
. After acquiring
AMC
AMC may refer to:
Film and television
* AMC Theatres, an American movie theater chain
* AMC Networks, an American entertainment company
** AMC (TV channel)
** AMC+, streaming service
** AMC Networks International, an entertainment company
*** ...
in 1987, Chrysler fulfilled one of AMC's conditions of sale by creating the
Eagle
Eagle is the common name for many large birds of prey of the family Accipitridae. Eagles belong to several groups of genera, some of which are closely related. Most of the 68 species of eagle are from Eurasia and Africa. Outside this area, just ...
marque in 1988 to be sold at existing AMC-
Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
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
Ram, ram, or RAM may refer to:
Animals
* A male sheep
* Ram cichlid, a freshwater tropical fish
People
* Ram (given name)
* Ram (surname)
* Ram (director) (Ramsubramaniam), an Indian Tamil film director
* RAM (musician) (born 1974), Dutch
* ...
full-size pickup,
Dakota
Dakota may refer to:
* Dakota people, a sub-tribe of the Sioux
** Dakota language, their language
Dakota may also refer to:
Places United States
* Dakota, Georgia, an unincorporated community
* Dakota, Illinois, a town
* Dakota, Minnesota, ...
compact pickup and the
Sprinter van. 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. In 2011, however, Fiat became Chrysler's fifth brand with the North American introduction of the
Fiat 500
The Fiat 500 ( it, Cinquecento, ) is a rear-engined, four-seat, small city car that was manufactured and marketed by Fiat Automobiles from 1957 until 1975 over a single generation in two-door saloon and two-door station wagon bodystyles.
Launc ...
.
Other marques
MoPar, Chryco, AutoPar
In the 1930s, the company created a formal vehicle parts division under the
MoPar
Mopar is the parts, service, and customer care division of the former Chrysler Corporation, now owned by Netherlands-based automobile manufacturer Stellantis. It serves as a primary OEM accessory seller for Stellantis brands under the Mopar bran ...
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.
Many Chrysler Corporation vehicle parts also bore variants of the DPCD monogram, for ''Dodge-Plymouth-Chrysler-DeSoto'', well after the 1961 end of DeSoto production.
Airtemp
Chrysler's Airtemp marque for stationary and mobile
air conditioning
Air conditioning, often abbreviated as A/C or AC, is the process of removing heat from an enclosed space to achieve a more comfortable interior environment (sometimes referred to as 'comfort cooling') and in some cases also strictly controlling ...
,
refrigeration
The term refrigeration refers to the process of removing heat from an enclosed space or substance for the purpose of lowering the temperature.International Dictionary of Refrigeration, http://dictionary.iifiir.org/search.phpASHRAE Terminology, ht ...
, and
climate control
Heating, ventilation, and air conditioning (HVAC) is the use of various technologies to control the temperature, humidity, and purity of the air in an enclosed space. Its goal is to provide thermal comfort and acceptable indoor air quality. HV ...
was launched with the first installation in 1930's
Chrysler Building
The Chrysler Building is an Art Deco skyscraper on the East Side of Manhattan in New York City, at the intersection of 42nd Street and Lexington Avenue in Midtown Manhattan. At , it is the tallest brick building in the world with a steel fra ...
. The Airtemp Corporation was incorporated in 1934 and it utilized a former Maxwell factory.
![Safeguard Glass Markings 1](https://upload.wikimedia.org/wikipedia/commons/a/a0/Safeguard_Glass_Markings_1.jpg)
Airtemp invented capacity regulators, sealed radial
compressors
A compressor is a mechanical device that increases the pressure of a gas by reducing its volume. An air compressor is a specific type of gas compressor.
Compressors are similar to pumps: both increase the pressure on a fluid and both can transp ...
, 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 is an American company that manufactures air conditioners and other air treatment products. Founded by Theodore Fedders in 1896, Fedders is headquartered in the Basking Ridge section of Bernards Township in Somerset County, New Jerse ...
in 1976. In 2012 the name was reborn as a Nordyne byproduct exclusively sold by the R.E. Michel Company.
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
Aptiv PLC is an Irish- American automotive technology supplier with headquarters in Dublin. Aptiv grew out of the now-defunct American company, Delphi Automotive Systems, which itself was formerly a component of General Motors.
History
The co ...
and Ford's later creation of
Visteon
Visteon Corporation (VC) is an American global automotive electronics supplier and Fortune 500 company spun off from the Ford Motor Company in 2000. Visteon is composed of multiple businesses that design, engineer, and manufacture vehicle cockpit ...
.
Safeguard
Safeguard is Chrysler's brand for original and replacement auto glass, much of which, from 1958 through the mid-2000s, was made at Chrysler's McGraw glass plant, and some of which was manufactured for Chrysler by established glass companies.
Airflow
![1936-chrysler-archives](https://upload.wikimedia.org/wikipedia/commons/7/71/1936-chrysler-archives.jpg)
In 1934 the company introduced the
Airflow
Airflow, or air flow, is the movement of air. The primary cause of airflow is the existence of air. Air behaves in a fluid manner, meaning particles naturally flow from areas of higher pressure to those where the pressure is lower. Atmospheric a ...
models, featuring an advanced streamlined body, among the first to be designed using
aerodynamic
Aerodynamics, from grc, ἀήρ ''aero'' (air) + grc, δυναμική (dynamics), is the study of the motion of air, particularly when affected by a solid object, such as an airplane wing. It involves topics covered in the field of fluid dyn ...
principles. Chrysler created the industry's first
wind tunnel
Wind tunnels are large tubes with air blowing through them which are used to replicate the interaction between air and an object flying through the air or moving along the ground. Researchers use wind tunnels to learn more about how an aircraft ...
to develop them. Buyers rejected its styling, and the more conventionally designed Dodge and Plymouth cars pulled the firm through the
Depression 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
Hemi may refer to:
People Surname
* Jack Hemi (1914–1996), New Zealand freezing worker, rugby union and league player, shearer
* Ronald Hemi (1933–2000), New Zealand rugby union player
Given name
* Hemi Bawa, Indian painter and sculptor
* H ...
V8s.
The Forward Look
![Chrysler Imperial car-1955](https://upload.wikimedia.org/wikipedia/commons/8/8c/Chrysler_Imperial_car-1955.JPG)
In 1955 things brightened with the introduction of
Virgil Exner
Virgil Max "Ex" Exner Sr. (September 24, 1909 – December 22, 1973) was an automobile designer for several American automobile companies, most notably Chrysler and Studebaker.
Exner is widely known for the "Forward Look" he created for the ...
's successful
Forward Look
Virgil Max "Ex" Exner Sr. (September 24, 1909 – December 22, 1973) was an automobile designer for several American automobile companies, most notably Chrysler and Studebaker.
Exner is widely known for the "Forward Look" he created for the ...
designs, followed in 1956 by Chrysler's pioneering adoption of
transistor
upright=1.4, gate (G), body (B), source (S) and drain (D) terminals. The gate is separated from the body by an insulating layer (pink).
A transistor is a semiconductor device used to Electronic amplifier, amplify or electronic switch, switch e ...
radios in cars. On April 28, 1955, Chrysler and
Philco
Philco (an acronym for Philadelphia Battery Company) is an American electronics industry, electronics manufacturer headquartered in Philadelphia. Philco was a pioneer in battery, radio, and television production. In 1961, the company was purchased ...
had announced the development and production of the world's first all-transistor car radio. The Mopar model 914HR was developed and produced by Chrysler and Philco and was a $150.00 "option" on the 1956
Imperial automobile
Imperial was the Chrysler Corporation's luxury automobile brand from 1955 to 1975, and again from 1981 to 1983.
The Imperial name had been used since 1926, as a Chrysler luxury model, the Chrysler Imperial. However, in 1955, the company spun ...
models. Philco was the company that had manufactured the all-transistor car radio Mopar model 914HR, starting in the fall of 1955 at its Sandusky, Ohio plant, for the Chrysler corporation.
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
The unsprung mass (colloquially unsprung weight) of a vehicle is the mass of the suspension, wheels or tracks (as applicable), and other components directly connected to them. This contrasts with the sprung mass (or weight) supported by the ...
and shifted the car's
center of gravity
In physics, the center of mass of a distribution of mass in space (sometimes referred to as the balance point) is the unique point where the weight function, weighted relative position (vector), position of the distributed mass sums to zero. Thi ...
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.
On September 28, 1957, Chrysler had announced the production of electronic fuel injection (EFI) to be available as an option on some of its new 1958 car models (Chrysler 300D, Dodge D500, DeSoto Adventurer, Plymouth Golden Commando V-8) that resulted with approximately 35 total installations.
Chrysler used the same all-transistor modulator "Electrojector" fuel injection system from
Bendix Corporation
Bendix Corporation is an American manufacturing and engineering company which, during various times in its existence, made automotive brake shoes and systems, vacuum tubes, aircraft brakes, aeronautical hydraulics and electric power systems, av ...
that was withdrawn from public sale of the 1957
Rambler Rebel
The Rambler Rebel is an automobile that was produced by the American Motors Corporation (AMC) of Kenosha, Wisconsin for the 1957–1960 model years, as well as again for 1966 and 1967.
Introduced as a stand-alone model in one body style, the 19 ...
by American Motors because the system could not be made reliable. Owners of EFI Chryslers were so dissatisfied that all but one were retrofitted with carburetors, while that one has been completely restored, with original EFI electronic problems resolved.
[
]
Government programs in World War II
Vehicles and systems
During World War II, essentially all of Chrysler's facilities were devoted to building military vehicles and systems. Chrysler ranked eighth among United States corporations in the value of wartime production contracts. Chrysler made the converters for the Manhattan Project
The Manhattan Project was a research and development undertaking during World War II that produced the first nuclear weapons. It was led by the United States with the support of the United Kingdom and Canada. From 1942 to 1946, the project w ...
's K-25
K-25 was the codename given by the Manhattan Project to the program to produce enriched uranium for atomic bombs using the gaseous diffusion method. Originally the codename for the product, over time it came to refer to the project, the prod ...
gaseous diffusion plant in their Lynch Road plant in Detroit, after Dr Carl Heussner of the Chrysler plating laboratory solved the nickel plating problem.
Radar antennas
One of Chrysler's most significant contributions to the war effort was not in the field of vehicles but in design and manufacture of the components of radar
Radar is a detection system that uses radio waves to determine the distance (''ranging''), angle, and radial velocity of objects relative to the site. It can be used to detect aircraft, ships, spacecraft, guided missiles, motor vehicles, w ...
systems. The Radiation Laboratory
The Radiation Laboratory, commonly called the Rad Lab, was a microwave and radar research laboratory located at the Massachusetts Institute of Technology (MIT) in Cambridge, Massachusetts. It was first created in October 1940 and operated until 31 ...
at MIT
The Massachusetts Institute of Technology (MIT) is a private land-grant research university in Cambridge, Massachusetts. Established in 1861, MIT has played a key role in the development of modern technology and science, and is one of the m ...
, established in 1941 to develop microwave
Microwave is a form of electromagnetic radiation with wavelengths ranging from about one meter to one millimeter corresponding to frequencies between 300 MHz and 300 GHz respectively. Different sources define different frequency ran ...
radars
Radar is a detection system that uses radio waves to determine the distance (''ranging''), angle, and radial velocity of objects relative to the site. It can be used to detect aircraft, ships, spacecraft, guided missiles, motor vehicles, ...
, developed the SCR-584
The SCR-584 (short for '' Set, Complete, Radio # 584'') was an automatic-tracking microwave radar developed by the MIT Radiation Laboratory during World War II. It was one of the most advanced ground-based radars of its era, and became one of the ...
, the most widely recognized radar system of the war era. This system included a 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 pa ...
six feet in diameter that was mechanically aimed in a helical
Helical may refer to:
* Helix, the mathematical concept for the shape
* Helical engine, a proposed spacecraft propulsion drive
* Helical spring, a coilspring
* Helical plc, a British property company, once a maker of steel bar stock
* Helicoil
A t ...
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 (SCL) 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 developmen ...
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 did not affect 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 to build 1,500 of the SCR-584 antennas as well as the vans needed for the system.
Postwar government programs
After the war, Chrysler continued with special projects for the U.S. government. These were in the aerospace fields of missiles and space boosters.
Missiles
In April 1950, the U.S. Army established the Ordnance Guided Missile Center (OGMC) at Redstone Arsenal
Redstone Arsenal (RSA) is a United States Army post and a census-designated place (CDP) adjacent to Huntsville in Madison County, Alabama, United States and is part of the Huntsville-Decatur Combined Statistical Area. The Arsenal is a garrison f ...
, adjacent to Huntsville, Alabama
Huntsville is a city in Madison County, Limestone County, and Morgan County, Alabama, United States. It is the county seat of Madison County. Located in the Appalachian region of northern Alabama, Huntsville is the most populous city in t ...
. To form OGMC, about 1,000 civilian and military personnel were transferred from Fort Bliss, Texas
Fort Bliss is a United States Army post in New Mexico and Texas, with its headquarters in El Paso, Texas. Named in honor of LTC William Bliss (1815–1853), a mathematics professor who was the son-in-law of President Zachary Taylor, Ft. Bliss h ...
. Included was a group of German scientists and engineers led by Wernher von Braun
Wernher Magnus Maximilian Freiherr von Braun ( , ; 23 March 191216 June 1977) was a German and American aerospace engineer and space architect. He was a member of the Nazi Party and Allgemeine SS, as well as the leading figure in the develop ...
; this group had been brought to America under Project Paperclip. OGMC designed the Army's first short-range ballistic missile
A short-range ballistic missile (SRBM) is a ballistic missile with a range of about or less. In past and potential regional conflicts, these missiles have been and would be used because of the short distances between some countries and their relat ...
, the PGM-11 Redstone
The PGM-11 Redstone was the first large American ballistic missile. A short-range ballistic missile (SRBM), it was in active service with the United States Army in West Germany from June 1958 to June 1964 as part of NATO's Cold War defense of W ...
, based on the WWII German V-2
The V-2 (german: Vergeltungswaffe 2, lit=Retaliation Weapon 2), with the technical name ''Aggregat 4'' (A-4), was the world’s first long-range guided ballistic missile. The missile, powered by a liquid-propellant rocket engine, was develope ...
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 is a city in Macomb County in the U.S. state of Michigan. The 2020 Census places the city's population at 139,387, making Warren the largest city in Macomb County, the third largest city in Michigan, and Metro Detroit's largest suburb.
T ...
. The Redstone was in active service from 1958 to 1964; it was also the first missile to test-launch a live nuclear weapon
A nuclear weapon is an explosive device that derives its destructive force from nuclear reactions, either fission (fission bomb) or a combination of fission and fusion reactions ( thermonuclear bomb), producing a nuclear explosion. Both bom ...
, 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
The PGM-19 Jupiter was the first nuclear armed, medium-range ballistic missile (MRBM) of the United States Air Force (USAF). It was a liquid-propellant rocket using RP-1 fuel and LOX oxidizer, with a single Rocketdyne LR79-NA (model S-3D) roc ...
, a medium-range ballistic missile
A medium-range ballistic missile (MRBM) 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 ...
. In May 1959, a Jupiter missiles launched two small monkeys into space in a nose cone
A nose cone is the conically shaped forwardmost section of a rocket, guided missile or aircraft, designed to modulate oncoming airflow behaviors and minimize aerodynamic drag. Nose cones are also designed for submerged watercraft such as ...
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
A nuclear weapon is an explosive device that derives its destructive force from nuclear reactions, either nuclear fission, fission (fission bomb) or a combination of fission and nuclear fusion, fusion reactions (Thermonuclear weapon, thermonu ...
, they were first deployed in Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...
and Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
during the early 1960s.
In October 1950, K. T. Keller
Kaufman Thuma Keller, commonly known as K. T. Keller (27 November 188521 January 1966), was an American corporate executive who served as the president of Chrysler Corporation from 1935 to 1950 and as its chairman of the board from 1950 to 1956. ...
the president and chairman of the board of Chrysler was appointed part-time ''Director of Guided Missiles'' by President Truman
Harry S. Truman (May 8, 1884December 26, 1972) was the 33rd president of the United States, serving from 1945 to 1953. A leader of the Democratic Party, he previously served as the 34th vice president from January to April 1945 under Franklin ...
to "make sense" of the missile program. Kenneth Nichols
Major General Kenneth David Nichols CBE (13 November 1907 – 21 February 2000), also known by Nick, was an officer in the United States Army, and a civil engineer who worked on the secret Manhattan Project, which developed the atomic bomb dur ...
, who had worked with him on the Manhattan Project
The Manhattan Project was a research and development undertaking during World War II that produced the first nuclear weapons. It was led by the United States with the support of the United Kingdom and Canada. From 1942 to 1946, the project w ...
, was his assistant. They were to select missiles to be put into production and specify the number required and give more priority to air defense missiles. The process of authorizing came to be known as "Kellerizing", and once when the Navy objected to numbers lower than they desired being specified for their missile, Keller refused to accept the Navy letter. He sent it back, saying he was willing to discuss the numbers but refused to reply in writing and get into the "Pentagon paper mill procedure" of "endless reviews and letter writing". He resigned in September 1953.
Space boosters
In July 1959, NASA
The National Aeronautics and Space Administration (NASA ) is an independent agency of the US federal government responsible for the civil space program, aeronautics research, and space research.
NASA was established in 1958, succeeding t ...
chose the Redstone missile as the basis for the Mercury-Redstone Launch Vehicle
The Mercury-Redstone Launch Vehicle, designed for NASA's Project Mercury, was the first American crewed space booster. It was used for six sub-orbital Mercury flights from 1960–1961; culminating with the launch of the first, and 11 weeks l ...
to be used for suborbital test flights of the Project Mercury
Project Mercury was the first human spaceflight program of the United States, running from 1958 through 1963. An early highlight of the Space Race, its goal was to put a man into Earth orbit and return him safely, ideally before the Soviet Un ...
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 is pork from a leg cut of pork, cut that has been food preservation, preserved by wet or dry Curing (food preservation), curing, with or without smoking (cooking), smoking."Bacon: Bacon and Ham Curing" in ''Chambers's Encyclopædia''. Lo ...
and astronaut
An astronaut (from the Ancient Greek (), meaning 'star', and (), meaning 'sailor') is a person trained, equipped, and deployed by a human spaceflight program to serve as a commander or crew member aboard a spacecraft. Although generally r ...
s Alan Shepard
Alan Bartlett Shepard Jr. (November 18, 1923 – July 21, 1998) was an American astronaut, naval aviator, test pilot, and businessman. In 1961, he became the second person and the first American to travel into space and, in 1971, he beca ...
and Gus Grissom
Virgil Ivan "Gus" Grissom (April 3, 1926 – January 27, 1967) was an American engineer, pilot in the United States Air Force, and member of the Mercury Seven selected by National Aeronautics and Space Administration's (NASA) as Project Mercur ...
on three suborbital flights in January, May and July 1961.
As America's manned space flight plans became more ambitious, Wernher von Braun's team designed the Saturn family of launch vehicle
A launch vehicle or carrier rocket is a rocket designed to carry a payload (spacecraft or satellites) from the Earth's surface to outer space. Most launch vehicles operate from a launch pad, launch pads, supported by a missile launch contro ...
s. With Chrysler's Huntsville operation then designated the Space Division, Chrysler became Marshall Space Flight Center
The George C. Marshall Space Flight Center (MSFC), located in Redstone Arsenal, Alabama (Huntsville postal address), is the U.S. government's civilian rocketry and spacecraft propulsion research center. As the largest NASA center, MSFC's first ...
’s prime contractor for the first (booster) stage of the Saturn I
The Saturn I was a rocket designed as the United States' first medium lift launch vehicle for up to low Earth orbit payloads.Terminology has changed since the 1960s; back then, 20,000 pounds was considered "heavy lift". The rocket's first stag ...
and Saturn IB
The Saturn IB (also known as the uprated Saturn I) was an American launch vehicle commissioned by the NASA, National Aeronautics and Space Administration (NASA) for the Apollo program. It uprated the Saturn I by replacing the S-IV second stage (, ...
vehicles. The Saturn I booster stage was designated S-I, which was upgraded to the S-IB 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 (alternatively, Rocket Propellant-1 or Refined Petroleum-1) is a highly refined form of kerosene outwardly similar to jet fuel, used as rocket fuel. RP-1 provides a lower specific impulse than liquid hydrogen (LH2), but is cheaper, is st ...
fuel and four to hold the liquid oxygen
Liquid oxygen—abbreviated LOx, LOX or Lox in the aerospace, submarine and gas industries—is the liquid form of molecular oxygen. It was used as the oxidizer in the first liquid-fueled rocket invented in 1926 by Robert H. Goddard, an applica ...
(LOX) oxidizer, around a central Jupiter LOX tank. Chrysler built these for the Apollo program in the Michoud Assembly Facility
The Michoud Assembly Facility (MAF) is an manufacturing complex owned by NASA in New Orleans East, a district within New Orleans, Louisiana, in the United States. Organizationally it is part of NASA's Marshall Space Flight Center, and is currentl ...
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
The Apollo spacecraft was composed of three 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. The expendable (single-use) spacecraft ...
, and the last three also carried Pegasus
Pegasus ( grc-gre, Πήγασος, Pḗgasos; la, Pegasus, Pegasos) is one of the best known creatures in Greek mythology. He is a winged divine stallion usually depicted as pure white in color. He was sired by Poseidon, in his role as hor ...
micro meteoroid 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 monocoque
Monocoque ( ), also called structural skin, is a structural system in which loads are supported by an object's external skin, in a manner similar to an egg shell. The word ''monocoque'' is a French term for "single shell".
First used for boats, ...
) 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
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
, Ford Motor Company
Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...
, 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 contributions to the technology included the first use of computers to design unit-body cars, and the first setup where exterior sheet metal was not required for structural strength, making sheet metal replacement easier.
Chrysler's new compact line, the Valiant, 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
An alternator is an electrical generator that converts mechanical energy to electrical energy in the form of alternating current. For reasons of cost and simplicity, most alternators use a rotating magnetic field with a stationary armature.Go ...
(generating alternating current
Alternating current (AC) is an electric current which periodically reverses direction and changes its magnitude continuously with time in contrast to direct current (DC) which flows only in one direction. Alternating current is the form in whic ...
, paired with diode
A diode is a two-terminal electronic component that conducts current primarily in one direction (asymmetric conductance); it has low (ideally zero) resistance in one direction, and high (ideally infinite) resistance in the other.
A diode ...
s for rectification back to direct current
Direct current (DC) is one-directional flow of electric charge. An electrochemical cell is a prime example of DC power. Direct current may flow through a conductor such as a wire, but can also flow through semiconductors, insulators, or even ...
) rather than a direct current electrical generator
In electricity generation, a generator is a device that converts motive power (mechanical energy) or fuel-based power (chemical energy) into electric power for use in an external circuit. Sources of mechanical energy include steam turbines, gas ...
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.
Partly to compensate for rust problems on the 1957 models and partly to ensure that their Unibody cars would remain safe, as rust was a larger problem when body panels were required for strength, Chrysler pioneered the use of electrostatic charges to improve anti-rust agent adhesion in their 1960 models. The company was also the first to use a seven-step rust proofing bath system, though not the first to use rust proofing baths.
In April 1964, the Plymouth Barracuda
The Plymouth Barracuda is a two-door pony car that was manufactured by Plymouth (automobile), Plymouth from 1964 to 1974.
The first-generation Barracuda was based on the Chrysler A platform, Chrysler A-body and was offered from 1964 to 1966. A ...
, 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
The mustang is a free-roaming horse of the Western United States, descended from horses brought to the Americas by the Spanish. Mustangs are often referred to as wild horses, but because they are descended from once-domesticated animals, they ...
, making the Barracuda the first pony car
Pony car is an American car classification for affordable, compact, highly styled coupés or convertibles with a "sporty" or performance-oriented image. Common characteristics include rear-wheel drive, a long hood, a short decklid, a wide range ...
. 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 sheet metal.
Chrysler's target buyers were obviously men, and attracting female buyers was apparently not a high priority, because a 1967 sales brochure proclaimed, "At last—specifications your wife can understand." (This was, perhaps, an improvement over the Dodge La Femme
The Dodge La Femme is a full-sized automobile that was produced by Dodge between 1955 and 1956. The automobile was specifically designed for women. The La Femme option was available on 1955 and 1956 Dodge Custom Royal Lancer models.
Origin
...
option of 1955. It recognized that 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
The Rootes Group or Rootes Motors Limited was a British automobile manufacturer and, separately, a major motor distributors and dealers business. Run from London's West End, the manufacturer was based in the Midlands and the distribution and dea ...
in 1964, Simca
Simca (; Mechanical and Automotive Body Manufacturing Company) was a French automaker, founded in November 1934 by Fiat S.p.A. and directed from July 1935 to May 1963 by Italian Henri Pigozzi. Simca was affiliated with Fiat and, after Simca bough ...
of France and Barreiros of Spain, to form Chrysler Europe
Chrysler Europe was the American automotive company Chrysler's operations in Europe from 1967 through 1978. It was formed from the merger of the French Simca, British Rootes and Spanish Barreiros companies. In 1978, Chrysler divested these ...
. For the Rootes Group, one outcome of this takeover was the launch of the Hillman Avenger
The Hillman Avenger is a rear-wheel drive small family car originally manufactured by the former Rootes division of Chrysler Europe from 1970–1978, badged from 1976 onward as the Chrysler Avenger. Between 1979 and 1981 it was manufactured by ...
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
The PSA Group (), legally known as Peugeot S.A. (Peugeot Société Anonyme, trading as Groupe PSA; formerly known as PSA Peugeot Citroën from 1991 to 2016) was a French multinational automotive manufacturing company which produced automobiles ...
in 1978, which in turn sold the British and Spanish truck production lines to Renault
Groupe Renault ( , , , also known as the Renault Group in English; legally Renault S.A.) is a French multinational automobile manufacturer established in 1899. The company produces a range of cars and vans, and in the past has manufactured ...
of France.
More successfully, at this same time the company helped create the muscle car
Muscle car is a description according to ''Merriam-Webster Dictionary'' that came to use in 1966 for "a group of American-made two-door sports coupes with powerful engines designed for high-performance driving." The '' Britannica Dictionary'' ...
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 () is a port city and unitary authority in South West England. It is located on the south coast of Devon, approximately south-west of Exeter and south-west of London. It is bordered by Cornwall to the west and south-west.
Plymouth' ...
, Plymouth Road Runner
The Plymouth Road Runner is a mid-size car with a focus on performance built by Plymouth (automobile), Plymouth in the United States between 1968 and 1980. By 1968, some of the original muscle cars were moving away from their roots as relativel ...
, and Dodge Charger
The Dodge Charger is a model of automobile marketed by Dodge in various forms over seven generations since 1966.
The first Charger was a show car in 1964. A 1965 Charger II concept car resembled the 1966 production version.
The Charger has ...
. The racing success of several of these models on the NASCAR
The National Association for Stock Car Auto Racing, LLC (NASCAR) is an American auto racing sanctioning and operating company that is best known for stock car racing. The privately owned company was founded by Bill France Sr. in 1948, and hi ...
circuit burnished the company's engineering reputation.
The 1970s
The 1970s were tumultuous for Chrysler since, like all the American car companies of the era, the company was reliant on a marketplace where cheap oil was the norm. Although Chrysler entered the small car market with the 1971 Dodge Colt
The Dodge Colt is a subcompact car that was manufactured by Mitsubishi Motors and marketed by Dodge for model years 1971 to 1994 as captive imports. Rebadged variants include the Plymouth Champ and Plymouth Colt, both were marketed by Plymouth. ...
, a captive import of the Mitsubishi Galant
The Mitsubishi Galant is an automobile which was produced by Japanese manufacturer Mitsubishi from 1969 until 2012. The model name was derived from the French word ''galant'', meaning "chivalrous". There have been nine distinct generations with ...
and the first collaboration between Chrysler and Mitsubishi Motors
is a Japanese multinational automobile manufacturer headquartered in Minato, Tokyo, Japan.[Ford Pinto
The Ford Pinto is a subcompact car that was manufactured and marketed by Ford Motor Company in North America from 1971 until 1980 model years. The Pinto was the first subcompact vehicle produced by Ford in North America.
The Pinto was marketed ...](_blank)
and Chevrolet Vega
The Chevrolet Vega is a Subcompact car, subcompact automobile that was manufactured and marketed by General Motors, GM's Chevrolet subdivision from 1970 to 1977. Available in two-door hatchback, notchback, station wagon, wagon, and sedan deliver ...
. As market conditions changed and gas prices rose, Chrysler could not adapt in time. Critics of government regulations have claimed that U.S. anti-trust laws prohibited U.S. automakers from forming Japanese or European-style industry consortiums (which helped these foreign competitors to save costs). Chrysler was also slow to adapt to a gradual tightening of anti-pollution regulations. However, given that Chrysler's European divisions already had both the talent and the knowledge to make fuel-economic, less polluting vehicles, all that Chrysler's management had to do was to import European technology that it already owned. Chrysler's American difficulties, therefore, were largely the result of poor management.
Chrysler's lower sales volumes meant that 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, Chrysler clumsily detuned its existing engines to meet emission requirements, which resulted in lower fuel economy at a time when fuel prices were rising. There was a rush to sell the compact Dodge Dart
Dodge Dart is a line of automobiles marketed by Dodge from the 1959 to 1976 model years in North America, with production extended to later years in various other markets.
The Dart name originally appeared on a 1956 Chrysler show car featuring ...
and Plymouth Valiant
The Plymouth Valiant (first appearing in 1959 as simply the Valiant) is an automobile which was marketed by the Plymouth division of the Chrysler Corporation in the United States from the model years of 1960 through 1976. It was created to give t ...
, but the 1973 oil crisis
The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had supp ...
sharply reduced demand for the large, fuel-thirsty vehicles Americans had previously bought in large numbers 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 is a North American car classification describing somewhat sporty, sophisticated mass-market coupés that emphasized comfort over performance. The North American manufacturers most often combined engineering, design, and ma ...
market, the Chrysler Cordoba
The Chrysler Cordoba is a full-sized luxury car based on the Chrysler Newport that was marketed during the 1970 model year only and two generations as an intermediate-sized two-door personal luxury model manufactured by Chrysler in North Americ ...
. The hurried introduction of the Dodge Aspen and Plymouth Volaré 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 (, , ) is a French brand of automobiles owned by Stellantis.
The family business that preceded the current Peugeot companies was founded in 1810, with a steel foundry that soon started making hand tools and kitchen equipment, and the ...
the following year, soon after having helped design the new Plymouth Horizon
The horizon is the apparent line that separates the surface of a celestial body from its sky when viewed from the perspective of an observer on or near the surface of the relevant body. This line divides all viewing directions based on whether i ...
and Dodge Omni
The Dodge Omni (and the nearly identical Plymouth Horizon) is a subcompact car that was produced by Chrysler Corporation from the 1978 to 1990 model years. The first Chrysler model line produced with front-wheel drive, the Omni and Horizon were ...
. In 1980, Chrysler Australia
Fiat Chrysler Australia, officially FCA Australia, is the official Stellantis subsidiary in that country, operating as distributor of Chrysler, Jeep, Dodge, Abarth, Alfa Romeo and Fiat vehicles. However, there had previously been a "Chrysler Au ...
, which was producing the locally developed Chrysler Valiant
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automotiv ...
and the Mitsubishi Galant
The Mitsubishi Galant is an automobile which was produced by Japanese manufacturer Mitsubishi from 1969 until 2012. The model name was derived from the French word ''galant'', meaning "chivalrous". There have been nine distinct generations with ...
based Chrysler Sigma
The Chrysler Sigma is a version of the Mitsubishi Galant automobile that was built by Chrysler Australia in Adelaide, South Australia from 1977. When Mitsubishi Motors Australia (MMAL) took over Chrysler Australia's manufacturing facilities in 19 ...
, was sold to Mitsubishi Motors
is a Japanese multinational automobile manufacturer headquartered in Minato, Tokyo, Japan.[Mitsubishi Motors Australia Limited
Mitsubishi Motors Australia Limited (MMAL) is a fully owned subsidiary of parent company Mitsubishi Motors Corporation of Japan. The company was established in 1980 and began vehicle manufacturing in that year, having taken over the facilities ...](_blank)
. The subcompact Horizon/Omni duo was reaching the US market as the second gas crisis struck, and although they sold well, selling over 300,000 units each in their first year, sales of Chrysler's larger cars were slowing, and the company had no strong compact line to fall back on.
Turbine
For many years, Chrysler developed gas turbine
A gas turbine, also called a combustion turbine, is a type of continuous flow internal combustion engine. The main parts common to all gas turbine engines form the power-producing part (known as the gas generator or core) and are, in the directi ...
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
The Chrysler Turbine Car is an experimental two-door hardtop coupe powered by a turbine engine and manufactured by Chrysler from 1963–1964. The bodywork was constructed by Italian design studio Carrozzeria Ghia and Chrysler completed the fi ...
s, specialty designed Ghia
Carrozzeria Ghia SpA (established 1916 in Turin) is an Italian automobile design and coachbuilding firm, established by Giacinto Ghia and Gariglio as "Carrozzeria Ghia & Gariglio". The headquarters are located at Corso Guglielmo Marconi, 4, Turin ...
-bodied coupes were built in 1962 and placed into 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
Lido Anthony "Lee" Iacocca ( ; October 15, 1924 – July 2, 2019) was an American automobile executive best known for the development of the Ford Mustang, Continental Mark III, and Ford Pinto cars while at the Ford Motor Company in the 1960s, an ...
, recently fired from being Ford
Ford commonly refers to:
* Ford Motor Company, an automobile manufacturer founded by Henry Ford
* Ford (crossing), a shallow crossing on a river
Ford may also refer to:
Ford Motor Company
* Henry Ford, founder of the Ford Motor Company
* Ford F ...
's executive, was aggressively courted and brought in as CEO. At the time, Chrysler was losing millions, largely due to recalls of the company's Dodge Aspen
The Dodge Aspen, and the nearly-identical Plymouth Volaré, are compact cars that were produced from 1976 until 1980. The Volaré/Aspen model line offered a four-door sedan, a two-door coupe, and a four-door wagon.
During the time that the Vol ...
and Plymouth Volare
Plymouth () is a port city and unitary authority in South West England. It is located on the south coast of Devon, approximately south-west of Exeter and south-west of London. It is bordered by Cornwall to the west and south-west.
Plymouth ...
, cars that Iacocca would later claim should have been delayed until prototypes were fully tested. He began rebuilding the entire company from the ground up, laying off many workers, selling the loss-making Chrysler Europe
Chrysler Europe was the American automotive company Chrysler's operations in Europe from 1967 through 1978. It was formed from the merger of the French Simca, British Rootes and Spanish Barreiros companies. In 1978, Chrysler divested these ...
division to Peugeot
Peugeot (, , ) is a French brand of automobiles owned by Stellantis.
The family business that preceded the current Peugeot companies was founded in 1810, with a steel foundry that soon started making hand tools and kitchen equipment, and the ...
for a nominal $1 (or $4.15 in 2021) 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 and Plymouth Voyager. 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'' was a response to Akio Morita
was a Japanese businessman and co-founder of Sony along with Masaru Ibuka.
Early life
Akio Morita was born in Nagoya. Morita's family was involved in sake, miso and soy sauce production in the village of Kosugaya (currently a part of Tokoname ...
's '' Made in Japan''.
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 Congress
The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
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" on December 20, 1979 (signed into law by President Jimmy Carter
James Earl Carter Jr. (born October 1, 1924) is an American politician who served as the 39th president of the United States from 1977 to 1981. A member of the Democratic Party (United States), Democratic Party, he previously served as th ...
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
The Commercial Utility Cargo Vehicle (CUCV) (later Light Service Support Vehicle (LSSV)) (CUCV ) is a vehicle program instituted to provide the United States military with light utility vehicles based on civilian trucks.
CUCV/COTS
The Commerci ...
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 line, the Dodge Aries
The Plymouth Reliant and Dodge Aries are mid size cars introduced for model year 1981 as the first " K-cars" manufactured and marketed by the Chrysler Corporation. The Reliant and Aries were the smallest cars to have the traditional 6 passen ...
and Plymouth Reliant, 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 cars sold rapidly.
Aside from small cars, Iacocca re-introduced the full sized Imperial (automobile)#Personal luxury, Imperial as a company's flagship. The 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 an all-digital dashboard. Despite some marketing help from Iacocca's friend Frank Sinatra, including a special edition named after him, the revived Imperial sold poorly, selling only 12,000 cars out of the 25,000 that were originally planned for production. The Imperial was discontinued after the 1983 model year, and is regarded as the last of the ''Malaise era'' automobiles.
In February 1982 Chrysler announced the sale of Chrysler Defense, its profitable defense subsidiary to General Dynamics 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 Dodge Caravan and Plymouth Voyager minivans, 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 odometers – some as much as – before being shipped to dealers. The controversy gained fire after the United States Senate got involved, as Senator Sam Nunn bought one of the Chryslers in question. Chrysler settled out of court with complainants. Chrysler CEO Lee Iacocca
Lido Anthony "Lee" Iacocca ( ; October 15, 1924 – July 2, 2019) was an American automobile executive best known for the development of the Ford Mustang, Continental Mark III, and Ford Pinto cars while at the Ford Motor Company in the 1960s, an ...
sought to minimize damage to the corporation's public image by calling a news conference in which he termed the action "dumb" and "unforgivable".
In 1987, a joint venture with Mitsubishi Motors called Diamond Star Motors strengthened the company's hand in the small car market, and a new plant in Normal, Illinois was constructed to build Chrysler D platform, the first DSM cars, which were introduced in 1990. In the same year, Chrysler acquired American Motors Corporation (AMC) for $1.5 billion dollars (or $3,577,768,014 in 2021 dollars). Although Chrysler received AMC's dealer network and its engineering talent, the main motivations for the buyout were to bring the profitable Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
brand under the Chrysler umbrella, including the Jeep Grand Cherokee, which AMC had already finished most of the work on, and Iacocca desperately wanted.
The other motivation was the then-new Brampton Assembly, Brampton Assembly plant, which at the time was one of the most advanced vehicle assembly plants in North America, and allowed Chrysler to expand production capacity. Also AMC's Eagle Premier would form the basis for the future Chrysler LH platform sedans that were produced at Brampton. 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.
After AMC's buyout, Chrysler insiders speculated that AMC would take over the larger firm from within. Part of the reason was that AMC's Jeep Cherokee product line alone soon accounted for more than a third of Chrysler's profits. Several AMC leaders became stars at Chrysler, including François Castaing, AMC's vice president for Product Engineering and Development. Chrysler was suffering a five-year product slump after the success with its small cars and minivans, and by the late 1980s was mainly making Chrysler K platform, K-car derivatives that looked and drove alike. Chrysler was in desperate need to replicate the culture at AMC and Renault where work was conducted in an atmosphere "of constant change." Not only was Castaing made Chrysler's point man for fighting Chrysler's competitors, but he was also called to engineer a variety of products.
Chrysler surprised the industry by purchasing Italian sports car maker Lamborghini, with the $25 million acquisition heavily driven by Iacocca. Chrysler executives were appointed to Lamborghini's board, although most of the key members remained. To begin its revival, Lamborghini received a cash injection of US$50 million from its new owner, and the slow-selling Lamborghini Jalpa, Jalpa was discontinued. Lamborghini became profitable, and a more efficient franchise with full service and spare parts support was established, replacing the loosely affiliated and disorganized private dealer network.
Chrysler was interested in entering the "extra premium" sports car market, which Chrysler estimated at about 5,000 cars per year, worldwide. Chrysler aimed to produce a car to compete with the Ferrari 328 by 1991, and also wanted the Italians to produce an engine that could be used in a Chrysler car for the American market, which later became the Viper engine. Chrysler also took Lamborghini into motorsport for the first time, and became involved in the design of the Lamborghini Diablo when Chrysler designer Tom Gale (designer), Tom Gale restyled Marcello Gandini, Marcello Gandini's original concept for a softer look, which alienated Gandini. Chrysler also previewed the Lamborghini Portofino concept at the Frankfurt Auto show, but it was poorly received by the press and Lamborghini executives.
Although profits increased past the $1 million mark in 1991, the uptick in fortunes was to be brief; in 1992, sales crashed due to the early 1990s recession, and the $239,000 Diablo proved ultimately to be inaccessible to American enthusiasts. With Lamborghini bleeding money, Chrysler decided that the automaker was no longer producing enough cars to justify its investment, and sold the company to Indonesian conglomerate SEDTCO Pty. for $40 million.
In 1988, Chrysler and Fiat, owner of Alfa Romeo, reached an agreement that named Chrysler to be the exclusive distributor for Alfa Romeo in North America and easily allow Chrysler dealers to sell Alfa products, which lasted until Alfa left the United States in 1995. The initial contact between the two firms would lead to high-level talks in 1990 between Iacocca and Fiat Chairman Giovanni Agnelli about establishing joint ventures in the United States and Europe, and the possibility of Fiat taking a large equity stake in Chrysler. However, talks dragged on and eventually broke off. Ironically, Fiat would acquire a majority stake in Chrysler following its 2009 restructuring.
Iacocca received much credit for Chrysler's turnaround from near bankruptcy, with his commercials giving him celebrity status, and some mentioned him as a potential U.S. presidential candidate in 1988. However the latter part of his tenure from 1988 onwards was less successful. The acquisitions of Gulfstream Aerospace, Electrospace Systems, and other companies was intended to protect Chrysler from the cyclical nature of the auto industry, but a lack of engineering innovation and careless spending during the years of prosperity in the 1980s shrunk the company's working capital from $14.3 billion to just $1.7 billion. An endeavor with Maserati, then-owned by Iacocca's friend Alejandro de Tomaso, resulted in the Chrysler TC by Maserati, a poorly received luxury convertible based off the Chrysler LeBaron which according to Bob Lutz (businessman), Bob Lutz, wound up costing Chrysler "close to $600 million."
In addition, Iacocca enjoyed being in the spotlight and gradually isolated himself from his "Gang of Ford" managers that he had brought over from Ford Motor Company. By 1992, the board pushed Iacocca to retire, albeit with a generous severance package. Iacocca proposed Gerald Greenwald as his replacement, but that bought opposition from the board. Iacocca stepped down as CEO and Chairman of Chrysler at the end of 1992, being succeeded in these posts by GM Europe president Robert James Eaton, Robert Eaton.
Although Bob Lutz was the second-ranking executive in the company, he earlier opposed the merger with Fiat that Iacocca had championed. Due to their feud, Iacocca convinced the board to pass over Lutz for the chairmanship of Chrysler. However, Eaton and Lutz did develop a strong working relationship.
1990s
As the 1990s dawned, Chrysler faced a renewed round of financial troubles. The US economy slipped into a recession following the 1987 Black Monday (1987), Black Monday stock market crash and the Savings and Loan Crisis. In addition, most of Chrysler's lineup was based on the proven but dated Chrysler K platform, K-car platform, and critics routinely criticized their inability to produce fresh designs that were competitive with Japanese companies and Chrysler's Detroit rivals. Engineering teams were now allowed to explore new designs, a process that was largely discouraged under Iacocca's tenure.
François Castaing, by now Chrysler's vice president for Vehicle Engineering, had organized function teams, and incorporated the use of simultaneous engineering; This business process is now known as product lifecycle management. He also designed a new development approach in which teams of engineers focused on a single type of car platform, working on new models as a system from concept to production. An early adopter of PLM technology, Chrysler was able to become the auto industry's lowest-cost producer, recording development costs that were half of the industry average by the mid-1990s.
In 1992, Chrysler introduced the Chrysler LH platform, LH platform, replacing the K-derived Chrysler New Yorker and Dodge Dynasty. Like the LH platform's predecessor, the Eagle Premier, the LH cars featured longitudinally-mounted V6 engines with a front-wheel drive drivetrain, unusual in most U.S. front-wheel drive cars, but a hallmark of Renault's designs. The LH cars were the first to use Castaing's platform approach, and were produced in a record 39 months, compared to other Chrysler cars that took more than 50 months. The LH cars competed directly against the Ford Taurus, mid-size cars from Japan, and GM's General Motors H platform (1986), H and General Motors W platform, W platform cars.
While Chrysler's sales never rose to the levels of those popular rivals, the LH vehicles succeeded in altering Chrysler's previously dowdy public image, recasting the automaker as an innovative design leader. In 1995, Chrysler introduced the Chrysler Neon, Neon small car to replace the Dodge Shadow and Plymouth Sundance, and the midsize Chrysler JA platform, JA platform vehicles replaced the Dodge Spirit and Plymouth Acclaim. By 1996, the K platform and its derivatives had been phased out of production.
The continuing popularity of Jeep with the introduction of the 1992 Jeep Grand Cherokee (ZJ), Grand Cherokee and the 1997 Jeep Wrangler (TJ), Wrangler, bold new models such as the 1994 Dodge Ram pickup, Dodge Viper sports car, Plymouth Prowler hot rod, redesigned Chrysler LH platform, LH sedans and new Chrysler minivans (NS), minivans put the company in a strong position. The success of Castaing's system was exemplified not just by the attraction of Daimler-Benz as the suitor for Chrysler, but by more than just a passing interest from General Motors and Toyota. At that time, Chrysler executives such as Bob Lutz, Thomas Stallkamp, Robert Eaton and Castaing "made Chrysler the most nimble of Detroit's three carmakers."
In the early 1990s, Chrysler set up car production in Austria, and began producing right hand drive Jeep models in a 1993 return to the UK market after a 15-year hiatus.
In 1991, Chrysler began the process of moving its corporate headquarters from its 1925 founding location of Highland Park, Michigan, to nearby Auburn Hills. The move was complete by 1993.
In 1995, former CEO Lee Iacocca assisted in billionaire Kirk Kerkorian'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.
Chrysler was among the companies boycotted by LGBT social movements, gay rights groups after removing advertisements from the American Broadcasting Company, ABC sitcom ''Ellen (TV series), Ellen'' in 1997, which it deemed "controversial."
DaimlerChrysler 1998–2007
In 1998 Daimler-Benz and Chrysler 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 Bob Lutz (businessman), Bob 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, excluding the Eagle
Eagle is the common name for many large birds of prey of the family Accipitridae. Eagles belong to several groups of genera, some of which are closely related. Most of the 68 species of eagle are from Eurasia and Africa. Outside this area, just ...
brand, which was dissolved that year.
Then-Daimler-Benz CEO Juergen Schrempp had "promised a marriage made in heaven and huge synergies". But Martin H. Wiggers' concept of a platform strategy like the VW Group, was implemented only for a few models, so the synergy effects in development and production were too low. 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 luxury vehicle subsidiary. Chrysler President James P. Holden was responsible for misjudging the launch of the Dodge Caravan#Generation IV (2001–2007), all-new 2001 minivan that resulted in an expensive surplus of 2000 models, losing considerable market share to rivals like Honda Odyssey (North America), Honda and Toyota Sienna, Toyota (Chrysler had created and long dominated the minivan market), and also underestimated demand for the surprisingly popular PT Cruiser (originally planned to be a Plymouth vehicle), resulting in a $512 million third-quarter loss in 2000 that led to his firing later that year.
Dieter Zetsche was appointed CEO of the Chrysler Group in 2000. The Plymouth
Plymouth () is a port city and unitary authority in South West England. It is located on the south coast of Devon, approximately south-west of Exeter and south-west of London. It is bordered by Cornwall to the west and south-west.
Plymouth ...
brand was dissolved in 2001, and plans for cost cutting by sharing of platforms and components began. After Daimler began importing the Mercedes-Benz Sprinter into the US badged as a Freightliner and later a Dodge, the Mercedes-Benz SLK-Class (R170), Mercedes-Benz SLK (R170)-based Chrysler Crossfire coupé/roadster and the Chrysler Pacifica three-row crossover were introduced in 2004 as the first vehicles co-developed under the merger; the Crossfire was unsuccessful while the Pacifica had reliability and quality problems. A return to rear-wheel drive was announced for a new line of full size cars, spearheaded by the Chrysler 300, Dodge Charger (LX/LD), Dodge Charger and Dodge Magnum which used some Mercedes-Benz W211 components and offered a new HEMI V8 engine as a performance option. While the Magnum received a tepid reception in the market, the 300 and the Charger garnered much attention and sold well. The partnership with Mitsubishi Motors, Mitsubishi 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 and Ford Motor Company
Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...
).
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 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 trucks, 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
According to the April 2007 issue of Der Spiegel, 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 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 placed a 4.5 billion dollar bid for Chrysler. On April 12, Magna International 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 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 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, previously President of Toyota Motor Sales, U.S.A., Inc., 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.
The new company experienced its first labor dispute on October 10, 2007. A strike deadline of 11 am had been set by the United Auto Workers (UAW) union leadership pending successful negotiation of a new contract patterned after the pact with General Motors Corporation, 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 pm the same day indicated that a tentative agreement had been reached, thus ending the walkout after just over six hours.
Chrysler collaborated with Tata Motors, Tata Motors Limited of India: Tata's all-electric Tata Ace, Ace mini truck will be sold through Chrysler's GEM, Global Electric Motorcars 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.
2008 financial crisis
In October 2008, Cerberus and General Motors discussed an exchange of GM's 49% stake in Ally Financial, GMAC for Chrysler, potentially merging two of Big Three automobile manufacturers#United States, 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 and Federal Reserve Chairman Ben Bernanke requesting emergency funding for the Detroit Big Three (automobile manufacturers), Big Three Automakers. On the same day, General Motors 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 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 Ownership equity, equity stake. Several days later, Chrysler together with Ford
Ford commonly refers to:
* Ford Motor Company, an automobile manufacturer founded by Henry Ford
* Ford (crossing), a shallow crossing on a river
Ford may also refer to:
Ford Motor Company
* Henry Ford, founder of the Ford Motor Company
* Ford F ...
and General Motors, sought financial aid at a Congressional hearing in Washington D.C. in the face of worsening conditions caused by the automotive industry crisis of 2008, 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 Automotive industry crisis of 2008, 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 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 House of Commons of Canada 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 - Canadian-raised - had also threatened to walk away from a possible (and eventual) 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. Meanwhile 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 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 were within the estimates Chrysler envisioned in preparing its viability plan for the federal government.
On March 30, 2009, the White House announced it would provide an additional $6 billion in further support to Chrysler contingent on the company finalizing an alliance with Fiat before the end of April. Talks and hearings at U.S.Treasury in Washington, D.C. went on throughout the following month.
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, Fiat, Fiat S.p.A. 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, Title 11, United States Code, chapter 11 bankruptcy protection at the Federal Bankruptcy Court of the Southern District of New York, in Manhattan, on April 30, 2009, and announced an alliance with Fiat.[
The bankruptcy filing and related documents submitted by Chrysler to the United States Bankruptcy Court of the Southern District of New York, in Manhattan, New York City.]
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 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 Voluntary Employee Beneficiary Association, VEBA formed by the United Auto Workers Union to provide health care for Chrysler retirees will hold 55%. Minority stakes will be held by Fiat (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 initially owned a minority 20% stake of Chrysler Group LLC with the option of taking additional equity up to a 35% stake if certain operational and capitalization goals were achieved. The United Auto Workers’ union retiree health care trust fund (Volunteer Employee Benefit Association) was the majority owner, with 55 percent when Fiat reached its target holding of 35%. The U.S. and Canadian governments initially held minority stakes of 8% and 2%, respectively, of the new Chrysler.
On May 24, 2011, Fiat paid back $7.6 billion in U.S. and Canadian government loans. On July 21, Fiat bought the Chrysler shares held by the United States Treasury. With the purchase, Chrysler once again became foreign owned; this time Italian car maker Fiat gained majority ownership and control of Chrysler. The United States government's involvement in the Chrysler bankruptcy cost the U.S. taxpayer $1.3 billion.
Chrysler Group
In early 2009, Chrysler Group, based in Auburn Hills, Michigan, became majority owned by the United Auto Workers Voluntary Employee Beneficiary Association trust. In June 2009 Fiat gained ownership of Chrysler Group as a part of Chrysler's restructuring plan, and eventually gained 58% total stake in the company. Fiat stated plans for the Chrysler brand and Lancia to codevelop products, with some vehicles being shared. Olivier Francois, Lancia's CEO, took over as CEO of the Chrysler (division), Chrysler division in October 2009. Fiat has stated that, depending on the market, some Chrysler cars will be sold as Lancias and vice versa. Francois planned 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 () is a port city and unitary authority in South West England. It is located on the south coast of Devon, approximately south-west of Exeter and south-west of London. It is bordered by Cornwall to the west and south-west.
Plymouth ...
brand was discontinued. At the 2010 Detroit Auto Show, A Chrysler badged Lancia Delta was on display, likely the first Lancia to be sold as a Chrysler and possibly as a replacement for the Chrysler PT Cruiser. Dodge, Jeep, Chrysler get makeover by refreshing, redesigning or replacing every car and truck, swapping out engines and creating vehicles people want.
On 16 December 2014, Chrysler Group LLC announced a name change to FCA US LLC.
Timeline of Chrysler
* Maxwell Motor Company (1904–1925)
* Chrysler Corporation (1925–1998)
* Daimler AG, DaimlerChrysler AG (1998–2007)
* Chrysler LLC (2007–2009)
* Chrysler Group LLC (2009–2014)
* Fiat Chrysler Automobiles, FCA US LLC (2014–2021)
* Stellantis, Stellantis North America (2021–present)
Logos
Golden seal logo
With its inception in 1925, Chrysler's logo was a round medallion with a ribbon bearing the name 'CHRYSLER' in uppercase block letters. It The logo resembled a seal that was used at government fairs as an award. The original symbol fell out of use in 1954 and was forgotten for several decades until the company decided to return to its origins. The logo was designed by one of Chrysler engineers, Oliver Clark, by request of company's founder Walter Chrysler
Walter Percy Chrysler (April 2, 1875 – August 18, 1940) was an American industrial pioneer in the automotive industry, American automotive industry executive and the founder and namesake of American Chrysler Corporation.
Early life
Chrysler wa ...
.[Chrysler logo history]
on Logos-World.net
The seal was dropped in 1955 and would return in 1998 being place at the center of a winged emblem.[
]
Forward Look
Virgil Exner
Virgil Max "Ex" Exner Sr. (September 24, 1909 – December 22, 1973) was an automobile designer for several American automobile companies, most notably Chrysler and Studebaker.
Exner is widely known for the "Forward Look" he created for the ...
's radical "Forward Look
Virgil Max "Ex" Exner Sr. (September 24, 1909 – December 22, 1973) was an automobile designer for several American automobile companies, most notably Chrysler and Studebaker.
Exner is widely known for the "Forward Look" he created for the ...
" 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 rocket-propelled motion.
Pentastar
As the Forward Look styling cycle was ending, Chrysler President Lynn Townsend sought a new logo usable by all of Chrysler's worldwide divisions and subsidiaries, automotive and non-automotive, on packaging, stationery, signage and advertising. He wanted something that would be immediately identifiable as Chrysler's mark to anyone who saw it, in any culture.
In September 1962, the company adopted a logo named "Pentastar", made of five triangles arranged so their bases formed the sides of a pentagon. The gaps in between the triangles formed a star in the middle of the pentagon. The Pentastar was simple and easily recognizable, even on revolving signs, and was not tied to any particular automotive styling feature as had been the previous Forward Look logo. Because the symbol contained no text, it facilitated Chrysler's expansion in international markets. The Pentastar was extensively used on dealer signage, advertisements, and promotional brochures, as well as on Chrysler products themselves.
Chrysler-Plymouth literature, advertisements, and dealership signage used a blue Pentastar or a white one on a blue background, while Dodge used a red Pentastar or a white one on a red background. 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 systems, powdered metal products, adhesives, chemical products, plastics, electronics, tanks, missiles, leasing, finance and auto parts—were identified by the Pentastar. Upon Chrysler's 1987 acquisition of American Motors and its subsequent rebranding as Chrysler's Jeep-Eagle division, the division logo used the exact shade of red and blue from the last AMC logo while incorporating the Pentastar; unlike the legacy Chrysler brands, Jeep and Eagle never incorporated the Pentastar as its main logo.
The Pentastar logo was placed on the lower passenger-side fender (automobile), fender 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 Right- and left-hand traffic, left-hand drive cars had the Pentastar on the right fender, while Right- and left-hand traffic, right-hand drive cars had it on the left. Starting in the 1980s, hood ornaments 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. It was also applied to the steering wheel, keys, and fenders of the Voyager and the other Chrysler S platform#NS, 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 Chrysler World Headquarters and Technology Center, DaimlerChrysler's American headquarters in Auburn Hills, Michigan, and Pentastar Aviation, 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 or logo on Chrysler Group parts, as seen on window glass, on individual components, molded plastic assemblies, and larger parts such as (reportedly) engine blocks.
The Pentastar was officially reintroduced in 2007; however, was replaced with the stylized letters "FCA" for Fiat Chrysler Automobiles in 2014. Even Chrysler now became a part of Stellantis
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 on the basis of a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The comp ...
since 2021, which formed by the merger of FCA and the French automaker PSA Group, the Pentastar logo still maintained at the headquarters' building.
The Pentastar is also used as the badge of the United States Army's V Corps (United States), V Corps.
Return of divisional logos
Divisional logos began to supplant the company-wide Pentastar application in the early 1990s. The Dodge division phased in a ram's-head logo beginning with the 1993 Dodge Intrepid, Intrepid and Dodge Spirit, Spirit. The Chrysler brand began using a medallion based on its original logo starting with the 1995 Chrysler Cirrus, Cirrus, Chrysler Concorde, Concorde, and Chrysler Sebring, Sebring. 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 ship logo.
Winged logo
The design shown here is an adaptation of the original medallion logo which Chrysler used on its cars at its inception in 1925. The logo was revived for the Chrysler division in 1998, and is often surrounded by a pair of silver wings. When sold to Cerberus, Chrysler readopted the Pentastar (see above) as their corporate logo, although the winged logo is still used on the cars themselves.[
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Revival of Pentastar
On May 17, 2007, an internal email stated that Chrysler was going to revive the Pentastar logo, in updated form, after their split from Daimler. The new three-dimensional Pentastar was formally introduced when Chrysler LLC began doing business as a private company in August 2007. Chrysler cars retained a modified version of the winged logo.
2014–present
With the formation of Fiat Chrysler Automobiles in 2014, the stylized letters "FCA" replaced the Pentastar as the official logo. The move angered several Chrysler fans who spawned a Facebook page and a petition drive to save it.
When FCA and PSA Group merged in 2021 to form Stellantis
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 on the basis of a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The comp ...
, Chrysler LLC Group (named "Stellantis North America", officially "FCA US"), adopted the Stellantis brand used worldwide.
See also
*Oilite Oilite is a brand of self-lubricating bearing that is made from metal alloys with pores that channel lubricants between the bearing itself and the shaft. It is manufactured from different types of material. Traditional Oilite is mostly made of copp ...
*Carl Breer
References
Further reading
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