The Chrysler Corporation was founded by Walter Chrysler in 1925, out of what remained of the Maxwell Motor Company. Chrysler greatly expanded in 1928 when it acquired the Fargo truck company and the Dodge Brothers Company and began selling vehicles under those brands; that same year it also established the Plymouth and DeSoto automobile brands. In the 1970s a number of factors including the 1973 oil crisisimpacted Chrysler's sales, and by the late 1970s, Chrysler was on the verge of bankruptcy. Lee Iacocca was brought in as CEO and is credited with returning the company to profitability in the 1980s. In 1987, Chrysler acquired American Motors Corporation, which brought the profitable Jeep brand under the Chrysler umbrella.
In 1998 Chrysler merged with German automaker Daimler-Benz AG to form DaimlerChrysler; the merger proved contentious with investors and Chrysler was sold to Cerberus Capital Management and renamed Chrysler LLC in 2007. Like the other Big Three automobile manufacturers, Chrysler was hit hard by the automotive industry crisis of 2008–2010 and along with General Motors received billions of dollars in loans from theUnited States government in late 2008 and early 2009 to prevent both companies from shutting down. Chrysler filed for Chapter 11 bankruptcy reorganization on April 30, 2009. On June 10, 2009 Chrysler emerged from the bankruptcy proceedings with the United Auto Workers pension fund, Fiat, and the U.S. and Canadian governments as principal owners. Over the next few years Fiat gradually acquired the other parties' shares to take majority ownership of the company.
Predecessor
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Chrysler LLC
(2007–2009)
DaimlerChrysler AG
(1998–2007)
Chrysler Corporation
(1925–1998)
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Founded
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June 6, 1925 (Chrysler Corporation)
June 10, 2009 (Chrysler Group LLC)
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Founder(s)
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Walter Chrysler
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Headquarters
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Auburn Hills, Michigan, U.S.
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Area served
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Worldwide
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Key people
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Sergio Marchionne (Chairman and CEO)
Bruno Cattori (President)
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Owner(s)
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Fiat S.p.A. (61.8%)
UAW VEBA (38.2%)
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Divisions
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Dodge
Jeep
Ram
Fiat (USA)
Mopar
SRT
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Website
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History
Walter Chrysler arrived at the ailing Maxwell-Chalmers company in the early 1920s. He was hired to overhaul the company's troubled operations (after a similar rescue job at the Willys-Overland car company). In late 1923 production of the Chalmers automobile was ended.
In January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler was a 6-cylinder automobile, designed to provide customers with an advanced, well-engineered car, but at a more affordable price than they might expect. (Elements of this car are traceable to a prototype which had been under development at Willys during Chrysler's tenure). The original 1924 Chrysler included a carburetor air filter, high compression engine, full pressure lubrication, and an oil filter, features absent from most autos at the time. Among the innovations in its early years were the first practical mass-produced four-wheel hydraulic brakes, a system nearly completely engineered by Chrysler with patents assigned to Lockheed, and rubber engine mounts to reduce vibration. Chrysler also developed a wheel with a ridged rim, designed to keep a deflated tire from flying off the wheel. This wheel was eventually adopted by the auto industry worldwide.
Following the introduction of the Chrysler, the Maxwell brand was dropped after the 1925 model year. The new, lower-priced four-cylinder Chryslers introduced for the 1926 year were badge-engineered Maxwells. The advanced engineering and testing that went into Chrysler Corporation cars helped to push the company to the second-place position in U.S. sales by 1936, a position it would last hold in 1949.
In 1928, the Chrysler Corporation began dividing its vehicle offerings by price class and function. The Plymouth brand was introduced at the low-priced end of the market (created essentially by once again reworking and rebadging Chrysler's four-cylinder model). At the same time, the DeSoto brand was introduced in the medium-price field. Also in 1928, Chrysler bought the Dodge Brothers automobile and truck company and continued the successful Dodge line of automobiles and Fargo range of trucks. By the mid-1930s, the DeSoto and Dodge divisions would trade places in the corporate hierarchy.
| 1955 Imperial car model shown on display at January 1955 Chicago Auto Show |
On April 28, 1955, Chrysler and Philco had announced the development and production of the World’s First All-Transistor car radio. The all-transistor car radio Mopar model 914HR, was developed and produced by Chrysler and Philco, and was an $150.00 "option" on the 1956 Imperial car models. Philco was the company, who 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.
| All-Transistor car radio - Chrysler Mopar model 914HR |
Imperial would see new body styles introduced every two to three years, all with V8 engines and automatic transmissions, as well as technologies that would filter down to Chrysler corporation's other models. Imperial was folded back into the Chrysler brand in 1973.
The Valiant was also introduced for 1960 as a distinct brand. In the U.S. market, Valiant was made a model in the Plymouth line for 1961 and the DeSoto make was discontinued during 1961. With those exceptions per applicable year and market, Chrysler's range from lowest to highest price from the 1940s through the 1970s was Valiant, Plymouth, Dodge, DeSoto, Chrysler, and Imperial.
Chrysler acquired the Jeep brand as part of the purchase of American Motors (AMC) on August 5, 1987, for somewhere between US$1.7 billion and $2 billion, depending on how costs were counted. Chrysler then established the Jeep/Eagle division, along with the Eagle brand that was discontinued a decade later as part of the DaimlerChrysler merger at that time. In 2001, the Plymouth brand was also discontinued. Currently, Dodge is the full line automobile brand, with the Chrysler brand marketing upscale cars. The Jeep brand focuses on SUVs, while the Ram brand offers small commercial vans and a variety of pick-up trucks. Earlier in October, 2012, inaccurate reports had suggested that Chrysler's Jeep brand is considering moving "all production to China." However, the company rejected the reports and the group's Chief Executive Sergio Marchionne reaffirmed that the company is not moving Jeep vehicle production out of the United States to China after it became an issue in the U.S. presidential campaign.
In 1998, Chrysler and its subsidiaries entered into a partnership dubbed a "merger of equals" with German-based Daimler-Benz AG, creating the combined entity DaimlerChrysler AG. To the surprise of many stockholders, Daimler subsequently acquired Chrysler in a stock swap, after the retirement of Chrysler CEO Bob Eaton. Under DaimlerChrysler, the company was named DaimlerChrysler Motors Company LLC, with its U.S. operations generally called the "Chrysler Group". On May 14, 2007, DaimlerChrysler announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management, L.P., thereafter known as Chrysler LLC, although Daimler (renamed as Daimler AG) continued to hold a 19.9% stake. The deal was finalized on August 3, 2007. On April 27, 2009, Daimler AG signed a binding agreement to give up its remaining 19.9% stake in Chrysler LLC to Cerberus Capital Management and pay as much as $600 million into the automaker's pension fund. Three days later, Chrysler declared bankruptcy. The U.S. Treasury Department announced that it would loan Chrysler $8 billion, adding to the $4 billion in loans it had already received, to get it through bankruptcy.
The sale of substantially all of Chrysler's assets to "New Chrysler", organized as Chrysler Group LLC was completed on June 10, 2009. The federal government provided support for the deal with US$6.6 billion in financing, which was paid to "Old Chrysler", and a newly formed company called Old Carco LLC took over the remaining assets and liabilities, which remained in Chapter 11 bankruptcy. This transfer excluded eight manufacturing sites, the majority of real estate holdings, and equipment leases. Contracts with 789 dealers in the U.S. were also excluded. On May 24, 2011, Chrysler repaid its $7.6 billion loans to the United States and Canadian governments.
On July 21, 2011, 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 $1.3 billion.
Corporate governance
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| Chrysler House landmark executive offices in the Detroit Financial District |
Board of directors
- Stephen M. Wolf
- Leo W. Houle
- Erickson N. Perkins
- Ruth J. Simmons
- Alfredo Altavilla
- Sergio Marchionne, Chairman and Chief Executive Officer
- Ronald L. Thompson
- Douglas M. Steenland
- John B. Lanaway
Management team
- Douglas D. Betts, Senior Vice President
- Reid Bigland, Dodge brand; U.S. sales chief & President and CEO Chrysler Canada
- Saad Chehab, President and Chief Executive Officer - Chrysler Brand
- Mark M. Cherboby
- Olivier Francois, Chief Marketing Officer, Chrysler Group and Fiat Group Automobiles, Head of Fiat Brand
- Scott R. Garberding
- Ralph Gilles, SRT brand and design
- Pietro Gorlier, Mopar parts and service
- Bill Cousins
- Mircea Gradu
- Peter M. Grady
- Michael J. Keegan
- Timothy Kuniskis
- Scott G. Kunselman
- Jody Trapasso
- Jason Stoicevich
- Bob Lee
- Robert E. Lee
- Holly E. Leese
- Laurie A. Macaddino
- Michael Manley, Jeep brand and international sales
- Richard Palmer, Chief Financial Officer
- Barbara J. Pilarski
- Nancy A. Rae
- Gualberto Ranieri
- Scott A. Sandschafer
- Joseph Trapasso
- Joseph Veltri
Sales and marketing
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| Chrysler Headquarters and Technology Center in Auburn Hills in Metro Detroit |
Domestic sales
Global sales
Marketing
Lifetime powertrain warranty
"Let's Refuel America"
Lancia co-branding
Ram trucks
Calendar year
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U.S. Chrysler sales
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%Chg/yr.
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1999
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2,638,561
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2000
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2,522,695
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2001
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2,273,208
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2002
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2,205,446
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2003
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2,127,451
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2004
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2,206,024
|
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2005
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2,304,833
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2006
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2,142,505
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2007
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2,076,650
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2008
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1,453,122
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2009
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931,402
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2010
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1,085,211
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2011
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1,369,114
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2012
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1,651,787
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"Imported From Detroit"
In March 2011, Chrysler Group LLC filed a lawsuit against Moda Group LLC (owner of Pure Detroit clothing retailer) for copying and selling merchandise with the "Imported from Detroit" slogan. Chrysler claimed it had notified defendant of its pending trademark application February 14, but the defendant argued Chrysler had not secured a trademark for the "Imported From Detroit" phrase. On June 18, 2011, U.S. District Judge Arthur Tarnow ruled that Chrysler's request didn't show that it would suffer irreparable harm or that it had a strong likelihood of winning its case. Therefore Pure Detroit's owner, Detroit retailer Moda Group LLC, can continue selling its "Imported from Detroit" products. Tarnow also noted that Chrysler doesn't have a trademark on "Imported from Detroit" and rejected the automaker's argument that trademark law isn't applicable to the case. In March 2012, Chrysler Group LLC and Pure Detroit agreed to a March 27 mediation to try to settle the lawsuit over the clothing company's use of "Imported from Detroit" slogan. Pure Detroit stated that Chrysler has made false claims about the origins of three vehicles - Chrysler 200, Chrysler 300 and Chrysler Town & Country - none of which are built in Detroit. Pure Detroit also said that Chrysler's Imported From Detroit merchandise is not being made in Detroit.
Chrysler's Jefferson North Assembly which makes the Jeep Grand Cherokee and Dodge Durango is the only car manufacturing plant of any company remaining in Detroit.
In 2011, Eminem settled a lawsuit against Audi alleging the defendant had ripped off the Chrysler 300 Super Bowl commercial in the Audi A6 Avant ad.
"Half Time in America"
Slogans
- Engineered to the Power of Cars (1998–2001)
- Drive & Love (2002-2004)
- Inspiration comes standard (2004-2007)
- Engineered Beautifully (2007-mid 2010)
- Imported From Detroit (2011-current)
Product line
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| Ram 1500, one of Chrysler's best selling vehicles |
Chrysler: Luxury sedans, convertible, and minivan
Dodge: Passenger cars, minivan, crossover, and SUV
Ram: Trucks and commercial vehicles
Jeep: Off-road vehicles, SUVs and crossovers
MOPAR: Upscale versions of selected cars, trucks, and SUVs from Chrysler, Dodge, Ram, Jeep, and Fiat (new for 2012). Also brand for dealer service and customer service operations.
SRT: High Performance. (The 2013 Viper will be badged as SRT Viper, not Dodge Viper; new for 2012)
Mopar
- Mopar: Replacement parts for Chrysler-built vehicles.
- Mopar Performance: a subdivision providing performance aftermarket parts for Chrysler-built vehicles.
PHEV Research Center
Fiat
Chrysler Uconnect
Environmental initiatives
Electric vehicles
Chrysler intended to pursue new drive concepts through ENVI, an in-house organization formed to focus on electric-drive vehicles and related technologies which was established in September 2007. In August 2009, Chrysler took US$70 million in grants from the U.S. Department of Energy to develop a test fleet of 220 hybrid pickup trucks and minivans. ENVI was disbanded by November 2009.
Hybrid vehicles
Chrysler continues to develop the Ram hybrid.
Chrysler has also been experimenting with a Hybrid Diesel truck for military applications.
However, Chrysler/Fiat CEO Sergio Marchionne has said that Chrysler and Fiat both plan to focus primarily on alternative fuels, such as CNG and diesel, instead of hybrid and electric drivetrains for their consumer products.
Special programs
Radar antennas
One of Chrysler’s most significant contributions to the war effort was not in the field of vehicles but in the radar field. For the final production design of this antenna and its highly complex drive mechanism, the Army’s Signal Corps Laboratories 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 holes were drilled in the face (this had no effect on the radiation pattern). The drive mechanism was completely redesigned, using technology derived from Chrysler’s research in automotive gears and differentials. The changes resulted in improved performance, reduced weight, and easier maintenance. A large portion of the Dodge plant was used in building 1,500 of the SCR-584 antennas as well as the vans used in the systems.
Missiles
Working together, the Missile Division and von Braun's team greatly increased the capability of the Redstone, resulting in the PGM-19 Jupiter, a medium-range ballistic missile. In May 1959, a Jupiter missiles launched two small monkeys into space in a nose cone on a Jupiter; this was America's first successful flight and recovery of live space payloads. Responsibility for deploying Jupiter missiles was transferred from the Army to the Air Force; armed with nuclear warheads, they were first deployed in Italy and Turkey during the early 1960s.
Space boosters
America's more ambitious manned space travel plans included the design of the Saturn series of heavy-lift launch vehicles by a team headed by Wernher von Braun. Chrysler's Huntsville operation, then designated the Space Division, became Marshall Space Flight Center’s prime contractor for the first stage of the Saturn I and Saturn IB versions. The design was based on a cluster of Redstone and Jupiter fuel tanks, and Chrysler built it for the Apollo program in the Michoud Assembly Facility in East New Orleans, one of the largest manufacturing plants in the world. Between October 1961 and July 1975, NASA used ten Saturn Is and nine Saturn IBs for suborbital and orbital flights, all of which were successful; Chrysler missiles and boosters never suffered a launch failure. The division was also a subcontractor where they modified one of the Mobile Launch Platforms for use with the Saturn IB rockets using Saturn V infrastructure.
Discontinued brands
- Chrysler Europe (sold to Peugeot)
Rootes Group
Sunbeam (1901–1976)
Humber (1967–1976)
Singer (1905–1970)
Commer (1905–1979)
Hillman (1907–1976)
Karrier (1908–1977)
Simca (1934–1977)
Barreiros (1959–1978)
American Motors (AMC) (1954–1988)
Hudson (1909–1957)
Nash (1917–1957)
Rambler (1900–1914; 1950–1969)
Maxwell (1904–1926)
Graham Brothers (1916–1929)
Fargo (1920–1972)
DeSoto (1928–1961)
Plymouth (1928–2001)
Imperial (1955–1975; 1981–1983)
Valiant (1960–1976) The Valiant was introduced in 1960 as a separate Chrysler brand, then was incorporated into the Plymouth line in the U.S. starting in 1961.
Valiant (1962–1981).
Valiant (1960–1966) Chrysler marketed the Valiant as a separate Chrysler model in Canada until 1967, when the Canada–United States Automotive Products Agreement of 1965 facilitated exporting the Plymouth Valiant to Canada.
Eagle (1988–1998)
GEMCAR (1998–2011) sold to Polaris Industries.
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