Chrysler's First Failure

Introduction

In 1979 the nation’s number three automaker was in dire need of help. Seabury (2010) said, “Chrysler was on the verge of bankruptcy and in desperate need of a $1.5 billion loan from the federal government. These troubles began back in the 1960s, when the company tried to expand within the United States as well as worldwide in an attempt to catch up to its main competitors. In hindsight it was ill advised, as the 1970s would have three recessions, two energy crises and new government environmental and fuel-efficiency standards. The fear of millions of jobs being lost, along with resurgent German and Japanese auto industries, had many concerned that an already weak economy could be pushed into a depression” (para. 1).

At this point in time, Chrysler is already a major corporation in the United States. They employ thousands of people at their manufacturing facilities, as well as, at the different parts suppliers, automotive dealerships, and in the transportation industry in general. If this automaker were to fail, it would devastate America. The economy was already in a recession and if thousands of people were to lose their jobs, it would crush any hope of returning to a steady economy. Brian (2008) said, “A visit one day to Congress by Chrysler CEO Lee Iacocca stunned everybody. Yes, he was begging the government to bail out his company or the famous car company would soon be bankrupt before the end of the year” (para. 1). At this point in time, Chrysler is a major corporation in the United States. They employ thousands of people at their manufacturing facilities, as well as, at the different parts suppliers, automotive dealerships, and in the transportation industry in general. If this automaker were to fail, it would devastate America. The economy was already in a recession and if thousands of people were to lose their jobs, it would crush any hope of returning to a steady economy.

Chrysler History

Walter Chrysler founded the Chrysler...