Brains Behind Chrysler

[Redman]

I know Ralph Gilles gets all the credit for the 300C, but reading this article (http://www.autofieldguide.com/articles/050503.html) shed some light on what makes the company really work - behind the scenes.

[gossame1]

Hello Gang,

Like 'em or hate 'em. Lee Iacocca was the true brains behind Chrysler. He saved the company from total extinction back in the late '70s, by introducing some of the most interesting cars at that time. He was responsible for the introduction of the first minivan (Dodge Caravan and Plymouth Voyager) back in '84, as well as the "K" cars (Dodge Aries and Plymouth Reliant)two years before that. He was credited with going to the Federal Government and obtaining the monetary support to get Chrysler out of the red ink. For those who don't know, he was also the CEO and Chairman of Ford Motor Company before Chrysler and was responsible there for the Mustang.

[Model 57]

I remember Lee; he was a great leader. I believe that he also had the sign on his desk "Lead, follow, or get the hell out of the way"

[jjs]

In all honesty, Lee may have done some things right in life (Mustang era) but to tout him as some messiah and genius of automotive manufacturing is a bit much when I read material on him.

I mean, he may have SUPPORTED producing minivans (I won't even mention the K cars), but certainly did not engineer or design them himself...he happened to be at the helm of a huge financial ship but as well all know it is the officer and staff ranks that did the actual work.

That....and....forgive me, but pretty much anyone with any knowledge can keep a business afloat with federal money...the true turn around miracle would to have done it without ALL taxpayers helping out.

Just my .02.

[vvv90]

Originally Posted by jjs

In all honesty, Lee may have done some things right in life (Mustang era) but to tout him as some messiah and genius of automotive manufacturing is a bit much when I read material on him.

I mean, he may have SUPPORTED producing minivans (I won't even mention the K cars), but certainly did not engineer or design them himself...he happened to be at the helm of a huge financial ship but as well all know it is the officer and staff ranks that did the actual work.

Well of course they entirety of the staff should get credit for major auto successes (i.e. Ralph Gilles) but Lee Iacoca definitely deserves the credit for taking the risks to market these automobiles. You can't say that about GM right now, and Bob Lutz is dissapointing people. Lee was the CEO, he deserves credit as being captain of the ship.

That....and....forgive me, but pretty much anyone with any knowledge can keep a business afloat with federal money...the true turn around miracle would to have done it without ALL taxpayers helping out.

Just my .02.

Amen, I agree with you here. There's no glory is begging the government to help your failing company. At least GM hasn't sunk that low yet.

Here's a quick question, do these corporations (airlines most recently) have to pay back us tax payers for their government assistance? I'm guessing not one red cent.

[jeepgrady]

,

Amen, I agree with you here. There's no glory is begging the government to help your failing company. At least GM hasn't sunk that low yet.

Here's a quick question, do these corporations (airlines most recently) have to pay back us tax payers for their government assistance? I'm guessing not one red cent.[/quote]


We should all be greatful to our government. If they didn't bail Lee out, we wouldn't have our 300's now, would we.

[vvv90]

Originally Posted by jeepgrady

We should all be greatful to our government. If they didn't bail Lee out, we wouldn't have our 300's now, would we.

Sorry, but the end doesn't jusify the means to me.

I'm not suggesting help shouldn't have been given, but what about my question? Do they repay the tax payers for money they get?

[Jerome81]

Yes. Chrysler paid it back, with interest, I want to say 10 years ahead of when it was all due....

Could be a little bit off on that year stuff.

[srt8danno]

Chrysler paid the United States government back seven years ahead of schedule. Read about it HERE


President Jimmy Carter signs the Chrysler Loan Guarantee Act, offering the troubled automaker $1.5 billion in federal support. One of the few useful pieces of corporate welfare ever enacted, the guarantees helped pull Chrysler (now a unit of DaimlerChrysler (DCX:NYSE)) through a severe recession, saving tens of thousands of jobs. The company would pay back the loans in 1983, seven years ahead of schedule. But the bailout wouldn't create the great moral hazard critics feared, since most big companies would either straighten up and fly right or, like Pan Am, be allowed to go bankrupt.

[jjs]

Originally Posted by Jerome81

Yes. Chrysler paid it back, with interest, I want to say 10 years ahead of when it was all due....

Could be a little bit off on that year stuff.

After some research, yes actually a couple years earlier than that....

http://www-personal.umich.edu/~afuah/cases/case3.html