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By My80Volare ~ Kevin Imhoff
Unlike most automobile manufactures of the time,
Walter Chrysler started his company rather late
in the early era of the car. By the time he was
ready to put his name on a car, Ford Motor Company
and General Motors were already well established, as
were numerous independent carmakers. But when he did
enter, it didn’t take him long to establish his
company as a premier automaker.
The first car to carry the Chrysler name wasn’t
actually his car. It was actually a
Maxwell-Chalmers design that was called the
Chrysler Four. That car would signify the end of the
Maxwell Motor Company, and the birth of the new (but
yet unofficial) Chrysler Corporation. Chrysler’s
first vehicle was the Chrysler Six, and it carried
many new innovations. These were things never before
offered on a medium priced vehicle before. They
included the industries first high-compression
engine with aluminum pistons, a detachable cylinder
head, vacuum fuel feed, full-pressure lubrication,
seven-bearing crankshaft, carburetor air cleaner, a
replaceable element oil filter, four-wheel hydraulic
brakes, and shock absorbers. But since it was not in
production, show organizers would not allow its
debut at the 1924 New York Automobile Show. Instead,
he parked the car in the lobby of the Hotel
Commodore. Walter Chrysler was in need of financial
supporters, and he knew many investors and
exhibitors would pass through the lobby. A Chase
Securities banker would eventually underwrite a $5
million USD issued of Maxwell Motor Corp. debenture
bonds to finance his plans.
Never being one to stand still, 1925 saw a lot of
action from Chrysler. May of that year saw the final
production of the Maxwell, with the Chrysler Four
coming out in June. Chrysler had a policy of
continuous engineering development, and 1925 saw the
introduction of a new vibration dampener that was
friction driven by a hub on the crankshaft for even
smoother engine performance. June also saw the
official incorporation of the Chrysler Corporation
in Delaware, as the successor to the Maxwell Motor
Company. The Maxwell-Chrysler Company of Canada that
began in Windsor, Ontario in 1924, was also
incorporated as Chrysler Corporation of Canada, Ltd.
in 1925. Windsor, an industrial city that was just
across the river from Detroit, quickly became
Canada’s largest automotive manufacturing center.
More than one million people visited showrooms the
first four days Chrysler displayed its new cars. By
the fall of 1925, 3,800 dealerships were selling
Chrysler cars. The Chrysler lineup consisted of six
body styles at that time. Walter explained why he
created the type of car that he sold. “I am building
the Chrysler because I have been convinced for years
that the public has a definite idea of a real
quality light car – one not extravagantly large and
heavy for one or two people, but adequately roomy
for five, economical to own and operate.”
Chrysler entered the luxury car market in 1926, and
established a new numerical designation for its car
models. The Chrysler Imperial E-80 enters the
market, with the “80” designation representing the
speed the car was guaranteed to run at – 80MPH. That
was an astonishing speed for the roads of the day.
Chrysler Corporation would rise from 57th
to fifth place in industry sales that year. Walter
Chrysler was also ready to expand his market
overseas at this time as well. In 1926, a division
of Chrysler was formed in Antwerp, Belgium, followed
by Chrysler Motors Ltd. Being established in London,
England the following year. These markets were
established to help ensure profits in the event of a
North American downturn.
1928 would be an incredibly busy year for Chrysler
Corporation. Despite being in business for only four
years, it was already a strong competitor with the
“big two” Detroit automakers, General Motors, and
Ford Motor Company. The
Plymouth Motor Company, and
DeSoto Motor Corporation were formed in May of
that year. But the biggest event for Chrysler that
year would be what some observers would describe as
“a minnow swallowing a whale”; Walter Chrysler had
purchased
Dodge Brother Inc. for the sum of $175 million.
Dodge brothers Inc was the manufacturer of Dodge
Brothers cars and trucks, as well as Graham Brothers
trucks. Main plants and forge facilities in
Hamtramck, Mi, as well as assembly plants in
Stockton, Ca, Evansville, In, and a CKD plant
Toronto, On, plus land on Lynch Rd were included in
the purchase. Walter would assume position of
President of Dodge Brothers. Coincidently, this
would also be the year of the production of the two
millionth Dodge Brothers car. The first DeSotos and
Plymouths would be priced at $670 to $725 to appeal
to consumers of average income, and went into
production that year. Also formed in that year, was
the Fargo Motor Corporation at Highland Park. Walter
Chrysler is the first president of Fargo.
The new Lynch Rd plant opens for production of
Plymouth and Desoto vehicles in 1929, and Chrysler
was now one of the “big three” leading automotive
manufactures. The Detroit Plymouth Assembly Plant
became the largest in the world. Construction also
began on the Chrysler Building in New York City. It
sealed Walter Chrysler’s reputation as one of the
most influential businessmen of the 20th
Century. Graham Brothers Truck, and Dodge Brothers
Truck would be renamed Dodge truck, and Dodge
Brothers car becomes Dodge in 1930. Fargo truck
production would also end for the first time, but
the division would carry on for fleet car sales and
export. The following year, another innovation would
come from Chrysler in the form of the patented
“Floating Power” engine mounting system. This system
used two flexible rubber mounts to isolate engine
vibrations from the chassis. 1931 models also
received an automatic spark advance, as well as a
“free-wheeling” transmission – the precursor to the
automatic transmission. This allowed the driver to
shift gears without using the clutch.
The company endured the Great Depression of the 30’s
through cost cutting measures, but never cut back on
research and development. Their advertising
highlighted as many common sense vehicle features as
possible and stressed engineering instead of
glamour. Those decisions paid off in 1933 when
Chrysler became the only automotive company whose
sales surpassed the record 1929 sales. 1934 saw the
introduction of the Chrysler Airflow and Desoto
Airflow vehicles. These were seen as an “engineer’s
car” and incorporated many engineering advances. The
top of the line Chrysler Custom Imperial Eight saw
the first use of a one-piece curved windshield. Many
of the Airflows features would go on to be standard
design features by the auto industry worldwide. The
one-millionth Plymouth is produced.
All of Chrysler Corporation’s sub corporations would
become divisions in 1935. Plymouth Motor Corporation
becomes Plymouth Division, Dodge Brothers
Corporation becomes Dodge Division, DeSoto Motor
Corporation becomes DeSoto Division, and Chrysler
Motor Corporation becomes Chrysler Sales Division.
K.T. Keller would take over as president of
Chrysler, and Walter Chrysler would continue as
chairman of the board. 1936 sees the 3 millionth
Dodge, and the two millionth Plymouth and
one-millionth Chrysler are produced in 1937. In
1938, Chrysler introduced the New Yorker Special. It
soon became known as simply the New Yorker. It is a
nameplate that lasted until its discontinuation in
1995, making the Chrysler New Yorker the
longest-running nameplate in the auto industry
worldwide. (Note: There is something I never would
have thought of as being true) Walter Chrysler fell
ill in the spring of ’38, ending his active
management of Chrysler Corporation. But under K.T.
Keller, the company continued its trend of
innovations. In 1939, Chrysler received the “Safety
Council Award” for two of those innovations: safety
glass and safety wheel-rims. Another notable
innovation was the use of the first powered-top
convertible. The 3 millionth Plymouth was also
reached that year.
The 40’s started off on a sad note with the death of
Walter Chrysler after a long illness. It also saw
substantial production of military vehicles for the
war effort. World War two had caused the closing of
the Belgium assembly plant, and the production
stoppage of the London England facility. Chrysler
was contracted to build a $20 million plant for the
production of tanks and produced 18,000 M4 Sherman
tanks, and approximately 500,000 Dodge trucks. By
1945, Chrysler had provided $3.4 billion in military
equipment for Allied forces. The 4 millionth
Plymouth and Dodge cars were produced in 1941.
Chrysler had also introduced the Town and Country
line of sedans, station wagons and convertibles in
the 40’s, and began a limited production of its
first ‘hardtop” convertible in 1946.
After the war, Chrysler responded to the need for
increased car and truck production by building or
buying 11 plants between 1947 and 1950. Their first
post-war production cars would feature a number of
new features: Oriflow shock absorbers, key-operated
ignition systems, and cycle-bonded rivet-less brake
linings. Four-wheel disc brakes are available on the
top of line Imperial, and Plymouth introduces one of
the century’s first all-steel station wagons. The 5
millionth Plymouth rolls from the lines in 1948. The
5 millionth Dodge car, and 1 millionth Desoto reach
landmarks in 1949.
The 50’s saw a new president in L.L. Colbert, and
K.T. Keller becomes board chairman in 1950.
Production highlights for 1950 were seen with the 6
millionth Plymouth, and 2 millionth Chrysler.
Chrysler’s role with the government didn’t end with
the war however. New tank plants were announced for
New Orleans, LA. and Newark DE, and Chrysler entered
into a contract with the US Army to build the
Jupiter space exploration missiles. When hostilities
broke out in Korea, they again supplied military
products such as tanks, military trucks, and
air-raid sirens. By the end of the police actions,
Chrysler had participated in 31 government projects
worth more than $1.1 billion. Electric window lifts
were a new development in 1950 for Chrysler.
In retrospect, 1951 would be seen as a hallmark year
for Chrysler fans. That was the year of the Hemi.
The 331 CI V8 engines marked a breakthrough design
of hemispherical combustion chambers. It offered
remarkable volumetric efficiency, but at a high
cost. Its cost was often equal to one-third of the
purchase price of the car. Due to the cost of this
motor, its production would end in the mid-fifties.
The 7 millionth Plymouth is also produced. DeSoto
saw its first Hemi in 1952, a 276 CI V8, called
FireDome. The 6 millionth Dodge car reaches
production, also in 1952. Another Hemi engine
emerges in 1953, a 241 CI V8 for the Dodge Coronet;
Red Ram V8. The 8 millionth Plymouth is produced,
and “new idea” cars emerge. The Chrysler D’Elegance,
DeSoto Adventurer,
Dodge Firearrow, and Chrysler GS-1. Chrysler
also purchases Briggs Manufacturing Company
automotive facilities in the US $35 million.
Chrysler builds bodies for Packard to the end of the
1954 model year.
In 1954, Chrysler displays the impressive
turbine-powered Plymouth. It is unveiled at the
opening of the Chelsea Proving Grounds, near Ann
Arbor Michigan. 1955 brought another performance
landmark with the release of the Chrysler 300. This
was the world’s most powerful production car. The
two-door hardtop was powered by a 300 HP version of
Chrysler’s Hemi V8, fitted with solid lifters, and a
four-barrel carburetor. The Imperial was separated
from the Chrysler marquee, to its own division.
Production of cars for Plymouth reached 9 million,
and Dodge would see 7 million. 1956 would introduce
the TorqueFlite transmission with push-button drive,
a transistorized AM radio, and a bump of horsepower
for the Hemi-powered 300. With 10:1 compression,
power exceeded 1hp/CI with 355hp.
Plymouth production reached 10 million, and Chrysler
saw 3 million in 1957. Chrysler was introducing the
new “forward look” around this time; designs
influenced by aircraft designs, and the introduction
of tail fins. The Imperial introduced curved side
glass, as well as compound curved windshields,
further expanding design possibilities. Another
first is introduced in 1958. Auto-Pilot speed
control appears on Chrysler and Imperial model cars.
11 million Plymouth have now been produced. New for
1959 were swivel seats, and an automatic dimming
rear view mirror.
The 60’s brought about some big changes with
Chrysler. Unitbody construction was introduced in
1960 for all vehicles except Imperial, and is the
first use of computers in body engineering. And
Chrysler’s first “compact”, the Valiant, introduces
the renowned “slant six” engine, and the industry’s
first alternator-based electrical system. The
alternator, standard on the valiant, was optional
for all other cars. 12 million Plymouths, 8 million
Dodges, and 2 million DeSotos have now been
produced. After 33 years of production, the Desoto
car line comes to end. Chrysler also introduces the
45RPM automotive record changer with 14 record
capacity.1962 was the release of the new B bodied
car line.
Chrysler brought out the turbine engine again in
1963, this time in a limited production run of 50
units. These cars went to selected customers for
a two-year “real world” test program. Ultimately,
the engine would not make into Chryslers production
line up. Also for ‘63 was the announcement of the
Plymouth Super Stock 426-II engine, and the
industries first ever 5-year/50,000 mile warranty. A
new 273 CI V8 was introduced as an option for 1964
Plymouth valiant and Dodge Dart cars. 13 Million
Plymouths, and 9 million Dodges had now left the
line.
1964 marked another important year for Mopar fans.
That was the year the 426 Hemi was introduced. With
425 HP, it would become a legend in the automotive
world. Only about 11,000 of these monsters would be
built between 1964 and 1971. It is still considered
by many to be the ultimate internal combustion
engine. The California Motor Vehicle Pollution
Control Board approves its first US-developed
exhaust control system, a system designed by
Chrysler. 1965 saw the creation of the “Chrysler
Boat” – the C body. This was about the time that
muscle cars were all the rage, and Chrysler would
not be left out. With models such as the Challenger,
Road Runner, and Barracuda, Chrysler was leaving its
mark on the performance world. 14 million Plymouths
and 10 million Dodges had come and gone through
production now.
The innovations continued in 1966, when engineers
modified engines to create the Clean Air Package, an
exhaust emission control system. The front seat
shoulder harness, and separate, self-contained rear
window heater/defroster were safety innovations. The
15 millionth Plymouth and 4 millionth Chrysler were
produced that year. The 11 millionth Dodge was
produced in 1967, and 16 millionth Plymouth in 1968.
As it became more difficult to produce small cars
profitably in the US, Chrysler entered into a joint
agreement with Mitsubishi Heavy Industries in 1969,
and began to import and distribute cars and trucks
built by them.
A new car was introduced in 1970, the E body
platform for the Dodge Challenger. The Plymouth
Barracuda would share this platform. Total
production of cars was now at 18 million for
Plymouth, 13 Million Dodges, and 5 million
Chryslers. 1971 saw the end of the 426 Hemi, and the
introduction of the imported Dodge Colt from
Mitsubishi, and Plymouth Cricket, built by Chrysler
United Kingdom. Chrysler had also purchased a 15%
interest in Mitsubishi Motors Corporation of Japan.
The 1971 Imperial is available with 4-wheel,
anti-skid brake system as optional equipment.
1972 and 73 saw record production numbers for
Chrysler, but gasoline shortages, political
uncertainty, high interest rates, severe inflation,
and weakening consumer confidence spelled trouble
for Chrysler. They were facing a financial disaster,
as consumers demanded smaller, more fuel-efficient
cars. As the smallest of the big 3, Chrysler felt
the burden of the changing market place heavily. The
Japanese manufactures were the first ones to
respond, making great inroads into the US market.
While the domestic share of total US car sales fell,
the import market rose to 23%. In the midst of this
financial crisis, John J. Riccardo became chairman
in 1975. At the same time, in response to oil
scares, Chrysler offers a new Fuel Pacer, which
alerts drivers when the gas pedal is pushed too
hard. In an effort to further reduce exhaust
emissions, Chrysler introduces the Electronic Lean
Burn System (note: now there is something we could
have done without!). As the economic troubles
persist for Chrysler, Riccardo hires Lee Iacocca as
Chrysler President in November 1978. Ten months
later, Riccardo resigns and Iacocca is elected
Chairman in 1979. One of the only “successes” for
Chrysler in the late 70’s was the introduction of
the Dodge Omni and Plymouth Horizon in 1978. They
were America’s first transverse-engine,
front-wheel-drive small cars, and became popular
around the world.
Lee Iacocca stepped up to the challenge facing him
by reducing cost, restructuring its management, and
bringing in new executives to deal with the
financial problems. But external forces continued to
limit Chrysler’s ability to finance its programs
fully. Chrysler was forced to seek help from the
federal government in the form of loan guarantees.
While many people are under the impression that the
government actually lent Chrysler the money, the
fact is that they did not. What the government did
do was guarantee Chryslers loan repayment should the
company fail. The government would actually end up
350 million dollars richer for their help. In 1979,
the government granted Chrysler a $1.5 million loan
guarantee. Concessions from UAW workers,
white-collar workers, suppliers, creditors and
lenders kept Chrysler operating in 1980 despite a
record $1.7 billion loss. They then cut inventories
by $1 billion, reduced white-collar staff by 50%,
and cut its break-even point by 50% in its drastic
effort to manage its finances.
The recovery of the company began in 1981. “If you
can find a better car…buy it” became the Chrysler
battle cry. Lee Iacocca began appearing in
television commercials in 1980, and became one of
the most recognizable businessmen in the world.
While the company still saw losses for 1981, the
lights at the end of the financial trouble tunnel
were the headlights of the newly introduced K-Cars,
the Plymouth Reliant, and Dodge Aries. Those cars
were developed on a limited budget, and Chrysler
rode the sales of those cars to profitability in
1982. The momentum of these cars continued, and for
the first time since 1973, the company saw a profit
for four consecutive quarters. In August 1983,
Chrysler paid off the federal loan guarantees seven
years early, at a profit of $350 to the US
government.
A spin-off of the K car was introduced in 1984. The
Dodge Caravan and Plymouth Voyager became huge
successes for Chrysler. It was a new type of family
transportation and became an immediate hit. These
mini-vans became their best selling vehicles, and
ensured Chrysler’s financial health. Chrysler also
expanded into electronics and aerospace activities
in the 80’s. 1984 also saw the company report its
best earnings year ever, and reorganized itself into
a holding company made up of four different
operating divisions: Chrysler Motors, Chrysler
Financial, Gulfstream Aerospace, and Chrysler
technologies. They also continued their overseas
expansion acquiring 15.6% equity in Officine
Alffieri Maserati SpA. The relationship was short
lived, and ended in 1988, the equity being sold
later.
A joint venture company was formed with Mitsubishi
Motors to form Diamond Star Motors in 1985, with a
plant to open in Normal IL in 1988. In 1987,
Chrysler acquired Lamborghini, as well as American
Motors Corporation. Included with the AMC purchase
for $800 million was Jeep products, three vehicle
assembly plants, 1,600 dealerships, and the Beijing
Jeep Corporation joint venture in China. With the
AMC acquisition, Chrysler launched the Eagle brand
in 1987, the first new Chrysler brand since 1928
when DeSoto and Plymouth were launched. Chrysler
also realized that in order to be successful at
home; it also has to be viable overseas. With that
in mind, Chrysler would re-enter the European market
by exporting the Chrysler LeBaron (convertible), the
Plymouth Voyager, and the Dodge Daytona. All of
these vehicles would be sold under the Chrysler
badge. A 7-year/70,000 mile power train warranty,
and 7-year/100,000 mile outer body rust protection
warranty were also introduced in 1987.
Diamond Star Motors began producing the Plymouth
Laser in 1988. The Eagle talon, and Mitsubishi
Eclipse would also be produced there, and the first
standard equipment air bag restraint system appeared
in 88 as well. In 1989, a $1 billion cost cutting
and restructuring program began to focus its
resources on its core automotive business. This
restructuring led to the development a new approach
to car and truck production. Platform Teams.
Chrysler sold its equity in Mitsubishi Motors in
1991. This was also the time “platform teams” were
introduced. Representatives from various
departments, such as design, engineering,
purchasing, manufacturing, and marketing, would work
together on a single vehicle line throughout its
entire life cycle. Each team would work as a small
company with total operating responsibility. This
cuts development time because everyone works
together from the start. The Dodge Viper was the
first vehicle developed under this concept.
Following its success were the 1992 Jeep Grand
Cherokee, and a new line of “cab forward designed”
family sedans; the 1993 Chrysler Concorde, Dodge
Intrepid, and Eagle vision, commonly called the “LH”
cars.
Lee Iacocca dedicated the Chrysler technology Center
in 1991 on a site where the corporation’s new world
headquarters would open in 1995. The facility would
support cross-functional work among product designs,
engineering, manufacturing, and other departments in
vehicle development. In 1992, the Jefferson North
Assembly Plant was dedicated in downtown Detroit to
manufacture jeep grand Cherokee sport utility
vehicles. The plant was built in Detroit’s inner
city to offer continued employment to its dedicated
work force, and to support Detroit, rather than
following the industries trend toward building new
assembly plants in rural areas. 1992 also saw Robert
Eaton named by the board of directors as the new
Vice Chairman and Chief Operating Officer. Lee
Iacocca would step down at the end of 1993, and
Eaton took over as Chairman and CEO.
A new company sales record was established in 1994
at $3.7 billion, surpassing 1993’s record. That year
also marked the introduction of new sedans; the
Chrysler Cirrus, and Dodge Stratus, as well as new
coupes; Chrysler Sebring and Dodge Avenger. The
Cirrus was named Motor Trend’s “Car of the Year.” In
1995, the Dodge Caravan, with the industries first
driver’s side sliding door, was the first minivan to
win Motor Trend’s “Car of the Year” award. In 1996,
Eaton dedicated the Chrysler World Headquarters
building, a 15-story office complex crowned by a
two-story Pentastar, attached to the Technology
center. It is now possible for Chrysler Corporation
to design, engineer, test, build, evaluate, and
develop marketing plans for its vehicles under one
roof.
1999 saw the purchase of Chrysler by Daimler-Benz,
resulting in the Daimler-Chrysler Auto Group. While
still young, it has seen the development of cars
such as the Chrysler PT Cruiser. Time will tell if
this merger turns out as a success. Today,
Daimler-Chrysler’s mission is to produce cars and
trucks that people will want to buy, enjoy driving,
and want to buy again. With award winning vehicles,
world-class facilities, and a rapidly expanding
share of the global market, Chrysler Corporation is
on its way in the right direction.
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