Chrysler, Chrysler

Chrysler on June 6, 1925, when the Maxwell Motor Company (est. 1904) was re-organized into the Chrysler Corporation.

Shortly thereafter, Chrysler bought the Dodge Brothers automobile and truck company and launched the Fargo range of trucks. By the late 1930s, the DeSoto and Dodge divisions would trade places in the corporate hierarchy. This proliferation of marques under Chrysler's umbrella might have been inspired by the similar strategy employed successfully by General Motors. Beginning in 1955, Imperial , formerly the top model of the Chrysler brand, became a marque 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. After acquiring AMC in 1987, Chrysler fulfilled one of AMC's conditions of sale by creating the Eagle marque in 1988 to be sold at existing AMC-Jeep dealers. The Eagle brand lasted a decade, being discontinued in 1998, while Plymouth was ended three years later.

The 1960 Valiant was the first production automobile with an alternator (generating alternating current, paired with diodes for rectification back to direct current) rather than a direct current electrical generator 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 The DeSoto marque was withdrawn from the market after the introduction of the 1961 models due in part to the broad array of the Dodge lines and the general neglect of the division.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.

Previously, American cars had been developed without much emphasis on fuel economy, safety, or emissions, but now all automobile manufacturers had to develop smaller, lighter engines that ran much cleaner and still produced enough power to move large automobiles. U.S. anti-trust laws were interpreted as prohibiting the formation of a Japanese- or European-style industry consortium for rapid and cost-effective development of solutions to the new car safety and antipollution regulations. No cost-sharing was possible; each company had to solve each problem on its own, and Chrysler's lower sales volumes meant these new development and implementation costs made up a larger proportion of a vehicle's cost compared to Ford and General Motors. To avoid pricing themselves out of the market, they had to retrofit and detune their existing engines to meet emission requirements, which resulted in poor fuel economy just when fuel prices were rising. There was a rush of sales for the compact Dodge Dart and Plymouth Valiant, but the 1973 oil crisis sharply reduced demand for the large, fuel-thirsty vehicles Americans had previously bought in large number and which made up the bulk of Chrysler's product line.The Japanese automakers' American market share sharply increased, since their smaller cars were generally much more fuel-efficient. Chrysler bought a 15% stake of Japan's Mitsubishi Motors in 1971 and began selling rebadged Mitsubishi models in the United States.

Shortly thereafter, Chrysler Australia, which was producing a local Valiant and selling rebadged Japanese Mitsubishi Galants, was sold to Mitsubishi Motors. The subcompact Horizon was reaching the US market as the second gas crisis struck, devastating sales of Chrysler's larger cars and trucks, and the company had no strong compact line to fall back on.

On September 7, 1979, The Chrysler Corporation petitioned the United States government for US$1.5 billion in loan guarantees to avoid bankruptcy. At the same time former Ford executive Lee Iacocca was brought in as CEO. He 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's Made in Japan.

A joint venture with Mitsubishi called Diamond Star Motors strengthened the company's hand in the small car market. Chrysler acquired American Motors Corporation (AMC) in 1987, primarily for its Jeep brand, although the failing Eagle Premier would be the basis for the Chrysler LH platform sedans. This bolstered the firm, although Chrysler was still the weakest of the Big Three.

This was initially declared to be a merger of equals , but it quickly became evident that Daimler-Benz was the dominant partner. Despite offering a range of attractive models, Chrysler went into another of its financial tailspins soon after the merger, greatly depressing the stock price of the merged firm and causing alarm at headquarters in Germany, which sent Dieter Zetsche, who would later become CEO, to take charge. The Plymouth brand was phased out in 2001, and plans for cost cutting by sharing of platforms and components began. The Mercedes-based Chrysler Crossfire was one of the first results of this program. A return to rear-wheel drive was announced, and in 2004 a new line of full size cars, spearheaded by the Chrysler 300 using some Mercedes-Benz technology and a new HEMI V8 engine appeared and was successful. Financial performance began to improve, with Chrysler providing a significant share of DaimlerChrysler profits due to restructuring efforts at the Mercedes Car Group. The partnership with Mitsubishi was dissolved as DaimlerChrysler divested its stake in the firm due to Mitsubishi's demand for more control in the management.

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.

Chrysler announced in February 2008 that it would be reducing its product line from 30 models to 15 models.

However Chrysler LLC. is the only major automaker still lacking a single Top Safety Pick.

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.

The Chrysler executive also noted the automakers February retail sales were better than Fords as Chrysler continued to curtail lower-margin fleet sales. He also said the volumes being forecast for 2009 are within the estimates Chrysler envisioned in preparing its viability plan for the federal government.

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 and Union Agree to Deal Before Federal Deadline. New York Times, April 26, 2009 . Retrieved 27 April 2009. Chrysler filed for 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.

Fiat has stated it plans to increase its share to 35 % if Chrysler meets certain goals.

The United Auto Workers union retiree health care trust fund (Volunteer Employee Benefit Association) will be the majority owner, with 55 percent when Fiat reaches its target holding of 35%. The U.S. and Canadian governments will initially hold minority stakes of 8% and 2%, respectively, of the new Chrysler.

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 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.

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.

It was placed on the passenger-side fender so it could be viewed by passers-by, a subtle method of getting the symbol ingrained in the public's mind: a nameplate has to be read, but a symbol is quickly recognizable without reading. Thus left-hand drive cars had the Pentastar on the right fender, while right-hand drive cars had it on the left. Starting in the 1980s, hood ornaments on Chrysler-brand vehicles used a gem-like version of the pentastar to signify the brand's upscale status.

It was also applied to the steering wheel, keys, and fenders of the Voyager and the otherChrysler NS minivans.

Among the few remaining traces of this motif was a large, star-shaped window at 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.

The logo was revived for the Chrysler division in 1996, and was surrounded by a pair of silver wings after the Daimler-Benz merger in 1998. 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.

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 Cars, specialty designed Ghia-bodied coupes were built in 1962 and placed in the hands of consumers for final testing. After further development and testing to make emissions conform to 1970s-enacted EPA standards, the engines were planned as an option for the 1977 model LeBaron. However, Chrysler was forced to abandon the turbine engine as a precondition of U.S. government loan guarantees when the company experienced financial difficulties in the late 1970s.

Chrysler plans to use hybrid technology developed jointly with General Motors and BMW AG in vehicles beyond the two hybrid SUVs it had already announced to introduce in 2008.

The Dodge Ram HEMI Hybrid will combine a two-mode hybrid system with a 5.7-liter HEMI V-8 engine. For the 2009 Dodge Ram, Chrysler is launching an improved version of its HEMI V-8 engine featuring variable valve timing and a four-cylinder mode with an expanded operating range. The result is more power and torque, along with a 4% increase in fuel economy.

Source: Wikipedia > Chrysler