Chrysler in Trouble
“Chrysler In Trouble”
MGMT 479H
Chrysler started as a merger of two men, one of whom was having declining sales after World War 1 in the 20’s which caused him to have high debts. Walter T. Chrysler joined Maxwell Motor Corporation to help bring the company back from the high debts. In 1924 the first Chrysler was launched in the automobile market. Over the years the company introduced many different models. They also developed by the end of the 1950’s the HEMI engine along with power steering, power windows, power brakes, alternator, electronic fuel injection and many other innovations. With the oil crisis of the 1970’s created a demand for fuel efficient cars which Americans preferred the Japanese car’s over the American cars. With declining sales Chrysler promoted Iacocca as chairman and CEO who in turn started to revamp the company and set up new management. The company started cost cutting measures and expanded the line of automobiles they manufactured. In the 1980’s the company started to recover from the crisis. And in 1983 the company paid back the federal loan ahead of schedule. The company failed to make the merger with Daimler-Benz successful and which caused the company to ask for a Federal loan to help the company restructure. The Government asked for certain requirements to be met before they would receive any money. Under the restructure the company filed for bankruptcy on April 30, 2009. During this process the Chrysler company reached an alliance with Fiat.
Finding of Fact #1
Chrysler’s financial problems came from the company's poor business management.
Recommendations/Justifications:
Chrysler has a problem keeping up with the other foreign companies when the 1970’s fuel crisis were causing people to buy more fuel efficient cars. Chrysler should of put more work into creating cars that American’s would want to buy. They however focused on building more SUV’s and trucks which were not fuel efficient. By putting
MGMT 479H
Chrysler started as a merger of two men, one of whom was having declining sales after World War 1 in the 20’s which caused him to have high debts. Walter T. Chrysler joined Maxwell Motor Corporation to help bring the company back from the high debts. In 1924 the first Chrysler was launched in the automobile market. Over the years the company introduced many different models. They also developed by the end of the 1950’s the HEMI engine along with power steering, power windows, power brakes, alternator, electronic fuel injection and many other innovations. With the oil crisis of the 1970’s created a demand for fuel efficient cars which Americans preferred the Japanese car’s over the American cars. With declining sales Chrysler promoted Iacocca as chairman and CEO who in turn started to revamp the company and set up new management. The company started cost cutting measures and expanded the line of automobiles they manufactured. In the 1980’s the company started to recover from the crisis. And in 1983 the company paid back the federal loan ahead of schedule. The company failed to make the merger with Daimler-Benz successful and which caused the company to ask for a Federal loan to help the company restructure. The Government asked for certain requirements to be met before they would receive any money. Under the restructure the company filed for bankruptcy on April 30, 2009. During this process the Chrysler company reached an alliance with Fiat.
Finding of Fact #1
Chrysler’s financial problems came from the company's poor business management.
Recommendations/Justifications:
Chrysler has a problem keeping up with the other foreign companies when the 1970’s fuel crisis were causing people to buy more fuel efficient cars. Chrysler should of put more work into creating cars that American’s would want to buy. They however focused on building more SUV’s and trucks which were not fuel efficient. By putting