Chrysler: The Rise and Fall
The Chrysler Corporation was born during the 1920s automotive boom and weathered a century of successes, struggles, and mergers. It built top-selling Chrysler cars still adored by modern enthusiasts, produced tanks and aircraft parts during World War II, and was viewed as the quintessential American car brand.
Today, Chrysler is one of several auto brands owned by Stellanis, but previous mergers may have had a larger impact on the business's management.
The Chrysler Corporation Is Born
It’s fitting that Chrysler was born out of a merger of sorts. After reorganizing Maxwell Motor Corporation, owner Walter Chrysler founded the company on June 6, 1925. Maxwell Motors had been buried by the rampant successes of Ford and General Motors, and Chrysler was looking for a fresh approach.
Chrysler’s first car, the Chrysler 70, rolled off the production line in 1924 - it was a hit. Chrysler quickly followed the lead of its competition by dividing its business into tiered brands, with Plymouth serving as a low-end budget option and DeSoto meeting the needs of the mid-range market. At the same time, Chrysler completed a merger with the Dodge Brothers, acquiring its foundries and truck business; 1928 marked the real start of Chrysler as an automotive powerhouse.
Related: What Happened to Mercury?
The War Years
After being unionized in 1937, Chrysler joined its industry counterparts in halting car production at the US entry into the Second World War. Chrysler converted its factories to make trucks, tanks, aircraft parts, guns, bombs, and ammunition. The auto industry's contributions to the Allied war effort were pivotal, outproducing Axis nations by a margin of more than two to one by the end of hostilities in 1945.
The Lee Iaccoca Era
The post-war years were plagued with poor sales, problematic vehicles, and a long period of inflation that hurt sales in the 60s and 70s. In 1978, Chrysler appointed Lee Iacocca President and tasked him with righting what was considered a sinking ship. Chrysler slowly recovered after getting a $1.5 billion bailout from the government in 1979. It added Jeep to its portfolio in 1987 before completing the merger that shook the auto industry.
The Merger Era
In 1988, Daimler-Benz purchased Chrysler to form DaimlerChrysler. Initially, the partnership worked, but it was soon apparent that Chrysler was not only a secondary consideration but an afterthought as the organization focused on growing its other brands.
Daimler CEO Dieter Zetsche tried to save the Chrysler division in the early 2000s, but the results never came. In 2007, Daimler sold 80% of its ownership stake in Chrysler to Cerberus Capital Management, a private equity firm with broad investments in the auto industry.
Then came the Great Recession.
The Fiat-Chrysler Merger
Chrysler took a $4 billion loan from the US government, but the deal stipulated that it needed to lower costs, forcing a massive reorganization effort. Accelerated by the loan requirements, Chrysler, Fiat, and Daimler completed yet another merger. The Fiat Chrysler merger was completed in 2009, fueled by a total government loan package valued at over $10 million. The US Treasury would ultimately sell its Chrysler shares at a loss of over $1 billion.
The Stellantis Merger
In 2021, Fiat Chrysler and French manufacturer Peugeot joined Stellantis. The conglomerate, which includes a large portfolio of brands, is considered a curious member of the “Big Three” American automakers, which also include General Motors and Ford.
What Brands Does Stellantis Own?
After the addition of Chrysler, Fiat, and Peugeot in 2021, Stellantis now owns a total of 14 automobile brands, including Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram Trucks, and Vauxhall. While it operates in other markets, Stellantis sales are primarily concentrated in North America and Europe, and it has a strong position in the plug-in hybrid segment; in the US, four of the top five PEV models by sales are made by Stellantis.
The Best Selling Chryslers Roll On
The Chrysler Pacifica is now one of the best-selling Chrysler vehicles ever. After transitioning from an SUV crossover to mimic the Town & Country, the Pacifica is one of the top-selling minivans in the US and is available as a hybrid.
The most iconic Chrysler is the 300. Known for sleek styling and many luxurious touches, it embodies the Chrysler of old: a top-of-the-line sedan built to turn heads.
Keep Your Car on the Road for the Long Haul
Garfield Automotive Service Center has seen Chrysler shift gears repeatedly over the years, and we’ve helped hundreds of Chrysler owners stay on the road. No matter what you drive, you can count on Garfield Auto for fast, reliable auto repairs and exceptional customer service. Let’s keep moving; schedule your appointment today.