Chrysler

The history of Chrysler Corporation is actually already over. Quite recently Chrysler united with Daimler-Benz and this way Daimler-Chrysler Corporation was formed. This way Chrysler partially lost its independence, although it didn’t loose its individuality. Still the great past of this corporation is really worth studying. During several years of its existence Chrysler managed to enter the Great Three and took its stand in it firmly.

Today Chrysler is taking the third place among enterprises producing American cars after Ford and General Motors. The cars of such famous brands as Chrysler, Dodge, Plymouth, Eagle, and of course Jeep enjoy remarkable popularity among the costumers. Their product market is mainly Nirth America, but it’s worth mentioning that more and more cars of Chrysler brand appear in post-Soviet Byelorussia and Russia. How did Chrysler manage to achieve such great success in a couple of years after is appeared?

In fact Chrysler owes its success to one person. Indeed, the histories of greatest firms are not based on original solutions or outstanding services, these things are just secondary, since the key factor of success is the firm’s founders and management. So speaking about Chrysler, we can’t but mention the person this company was named after, the person that basically gave birth to the company, Walter Chrysler. Walter was born in 1875. He had the following career: since 17 he was an engine’s driver’s mate, at 24 - an expert mechanical engineer; at 33 a superintendent of Western railroad in Chicago; at 35 a manager of American Engine Company. At this point the consequence of Chrysler’s jobs made a crucial turn after in 1910 he purchased a personal automobile.

They say Chrysler was so fascinated with the very construction of the car so he managed to disassemble it and assemble it back even before he mastered driving it. As we can see, this first car impressed him greatly, because some 2 years later Chrysler got employed for Buick. In 1917 he became the President and CEO of this division of General Motors. In two years he Chrysler became General Motors vice-President in production, however he didn’t stay in that position for long.

It’s well-known that two persons possessing outstanding administrative abilities can scarcely get along together. Soon serious tensions appeared between William Durant (the President of GM) and Walter Chrysler. The conflict resulted in Chrysler leaving the company in 1920, feeling just well-to-do enough. Unable to direct his talents appropriately Walter soon started working in a very specific field of company restorations.

First Willys-Overland hired him for coping with a financial crisis, and then Maxwell Motor Car Company invited him. This company was saved with the help of unique and really expensive mean – Chrysler 6 car Walter constructed in team with 3 engineers. This car was offered inexpensive and was unique for its comfort and remarkable design. 32 thousand automobiles were sold during one year.

Finally, in 1925 Chrysler Corporation was formed, being actually an heir of Maxwell Motor Company. Chrysler, who naturally became the President of this new company, didn’t waste any time. That very year Chrysler 4 58 Series hit the market. According to its index the car made up to 58mph (93 km/h).

This speed was obviously considered enormous for that time, so soon 4000 dealers were selling these cars. Chrysler made a major breakthrough by rising to the 5th place from 57th among American car enterprises. The company kept on producing high-speed models. The next series made 130 km/h that was almost two times more than the maximum speed of the famous T model of Ford’s. By 1928 the incomes grew so much so Chrysler could afford opening new divisions (De Soto, Plymouth) and even purchase Dodge Brothers Company. All these new purchases were remarkably successful. The prices for De Soto and Plymouth varied from 670 to 725 USD.

This way such a car could be purchased even by a customer with comparatively low income that considerably expanded the product market. At the same time after purchasing Dodge Chrysler obtained the reputation of really reliable enterprise. Those were Dodge Brothers who constructed the famous car that could enter the Grand Canyon and drive out of it. By 1929 Chrysler already entered the Top Three.

However the company suffered a lot. Proudly the representatives of Chrysler noted that despite of all difficulties and forced decrease of field costs, the investments to research and development didn’t any decrease. That really helped corporation in 1933. At that time it was the only enterprise that managed to increase its incomes over the ones of 1929. That very year Chrysler excelled the sale volumes of Ford’s for the first time. Obviously that was a real victory. The success was secured in 1934 with production of Airflow series. That was the first series Chrysler equipped with curved wind-screen and automatic gearbox.

During World War II the company made good money. Sherman M-4 tanks (18,000 units) and army trucks (500,000 units), aircraft engines B-29, airplane guns etc. were among the popular products Chrysler released. Altogether by 1945 Chrysler released army equipment on the total sum of 3.4 billion dollars. After the war 11 plants were purchased for the money gained. However at that time the qualitative changes didn’t keep place with quantitative ones. While other companies released a number of new models, Chrysler only released several.

As a result in early 50ies the corporation descended to the third place among American automobile enterprises. However many novel technologies were introduced. First, in 1951 the first car equipped with steering booster was presented. Then all Chrysler cars were equipped with ignition key. Soon the suspension system was improved. Finally in 1952 Chrysler reached the outer space. After winning the contest against NASA engineers, Jupiter rockets won the honorable right of launching two test apes to the altitude of 350 miles. It is still a question what these apes felt like, but since then Koreans treated Chrysler rather negatively.

During the Korean conflict in 1950 Chrysler again worked for defense industry. By cooperating effectively with the government in many projects the company made 1.1 billion dollars. The motor-car enthusiasts remembered two specially constructed Chrysler engines. First, in 1951 Hemi V8 engine possessing special features was constructed. Unfortunately, the engine was quite expensive, its price consisted 30% of the car’s total price. This unit served as the basis for construction of legendary 426 Hemi motor. This engine making over 400 horsepower was produced especially for sport cars. Their total issue was 11,000 and some experts still consider it one of the best engines ever constructed. Model 426 was winning many contests; in 1963 Turbine car hit the market. A car equipped with a turbine engine was something brand-new. The main principle of its functioning was really similar to the one of contemporary jet engines. For preliminary tests 50 cars were produced, however soon the project was terminated and the Ministry of Defense became interested with the new engine and carried out its further development, only we can scarcely learn what its final result was…

In 60ies Chrysler kept on functioning successfully, but suffered much from imprudent management. The errors were made several years before. In early 50ies Chrysler was producing cars looking like compositions of motley rectangular boxes, this was representing rectangular style, while all the rest companies were producing cars of streamlined shapes. At the beginning of 60ies the company launched production of compact cars, when the consumers demanded luxury and vast spaces. It seems it would be just all right, because the oil crisis was approaching so the demand for compact cars would rise. However right before the crisis Chrysler started offering big cars with low fuel economy. As a result despite of all odds in 1972-73 the sales records were held, yet the results of crisis showed anyway. The market was conquered by Japanese enterprises that managed to adjust quickly to new customer demands.

Chrysler was on the very edge of bankruptcy, its losses were immense. Finally Mr. Iacocca was invited for saving the company, possessing 32-year work experience at Ford Company. For restoring the company he needed big funds so Chrysler sought for help from US federal government. Most likely they would decline his request if Iacocca didn’t arrange a series of public speeches. In his speeches he described in details what happened after all the corporate plants were closed. Obviously bankruptcy of such a huge corporation would impact the economics of USA badly.

As a result of these speeches in 1979 a special Act passed the US Congress and was signed by President Carter. This Act provided Chrysler with 1.5 billion USD. The help arrived just on time. That very 1979 Chrysler’s part in the market decreased from 21% (1952) to 9%. Chrysler closed several plants, fired a big number of workers, changed all his cars to front-wheel drive and doubled the fuel economy rate. As we can see, restoration worked out. The market slogan of that time was: “If you can find the best car… Buy it!” Chrysler developers did their best in constructing the best cars. Since 1981 new C-lass cars were produced. They allowed the company escape a financial dead-end.

Dodge Aries, Plymouth Reliant conquered the market providing the company good profits, which allowed Chrysler as soon as in 1983 pay off its debt to the government. That very 1983 Chrysler entered a new market segment by starting production of mini-vans. That caused a real revolution by changing the lifestyle of many American families. Today Chrysler minivans still dominate the American market and consist 20% of European one. The income growth obviously led to further expansion. Chrysler formed numerous joint companies, including the famous Diamond-Star one (cooperating with Mitsubishi).

In 1987 they purchased the famous company Lamborghini. So the fastest mass production car Diablo was also a product of Chrysler Company. Perhaps the biggest and the most profitable investment was purchasing the American Motors Company. Along with it the license for producing such cars as Eagle and Jeep passed to Chrysler. You know how famous these car brands are. Another special joint company producing transmission components was formed by Chrysler in cooperation with General Motors in 1989. That was the first case of amalgamation of two competing American companies. By the end of 80ies Chrysler improved its services. The company provided 7-year guarantee for its products. The guarantee extended both to engine components and the car’s body.

Chrysler experts affirmed that no rust would appear on the car’s body for 100,000 of mileage. Caring about safety matters, in 1988 Chrysler was the first company that installed the safety airbags on all its models, including them into standard package. Although in 1991 the company lost about 800 million dollars because of economic recession, Chrysler Technological Center was founded; in 1992 after 1.6 billion dollars investment a new plant was constructed in Detroit.

It’s worth mentioning that the plant was built in Detroit city itself and not in rural area. Although this location was less profitable from economical perspective, Chrysler won the confidence of Detroit residents, who served as experienced force, and supported the city itself. Its material thrift started in 1994 after the company held another record by earning 3.7 billion USD. That year new sedans Chrysler Cirrus and Dodge Stratus were presented. By the way, Cirrus won honorable Motor Trend competition and was nominated the “Car of the Year”. In 1995 for the first time a minivan won that competition. Dodge Caravan became the “Car of the Year” and the best-seller car. The enormous demand for Chrysler products led Chrysler to winning 19 more sales awards. The headquarters of Chrysler were built in 1996. This huge building adjacent to Chrysler Technological Center was used for holding sittings for making important decisions, developing car designs, conducting tests, constructing and developing production lines as well as for releasing cars. The whole automobile industry was concentrated in that building. The facilities of that building and decrease of transportation expenses allowed Chrysler to achieve the minimal production cost rates among other enterprises, so Chrysler was obtaining maximum profit from each unit produced. But prosperity cannot last forever.

The strike of 1977 proved that prosperity couldn’t last forever, resulting in loss of 450 million USD. It was the longest strike during the 30-year history of the plant; it lasted 1 month, 1800 workers joined it. The company continued its international cooperation with various firms abroad. Soon it signed an insignificant agreement with Daimler-Benz concerning production of minivans. It seems that their cooperation was quite fruitful, because in 1998 these huge enterprises amalgamated.

Today it’s difficult to predict Chrysler’s further destiny. On one hand the production volumes grew significantly, that led to increase of productive capacities and winning a better spot in the market. But on the other hand it seems that the new corporation, although titled Daimler-Chrysler, is still more Daimler than Chrysler. The corporation is gradually Germanized, and its American workers really dislike that. Nevertheless whatever processes take place in this big business, whatever company integrations occur, Chrysler cars are going to stay as popular as before. This corporation presented the world famous Cherokee and Grand Cherokee SUVs; it constructed Dodge Viper, Chrysler 300M and many other wonderful cars.

So what so the history of Chrysler has already come to its final page? The evolution of new Chrysler cars has just begun at production lines of Brampton plant n Canada; new rear-wheel drive Chrysler models are produced – these are “twins” 300C and Dodge Magnum. It’s known that many units and mechanisms of fraternal Mercedes model were involved in construction of chassis of these models.

According to Burke Brown, the chief engineer of Chrysler Group, it’s 20% Mercedes. The “senior” German partner provided a 5-speed hydraulic automatic gearbox, steering gear, front and rear suspensions, differentiated main gear, seat frames and various electronics installed. But their engines are original Chrysler ones, V-6 2.7 and 3.5-liter ones with 24 valves, plus Chrysler’s trump-card – the powerful 5.7-liter 8-cylinder Hemi, a solid-aluminum yet traditional unit, so dear to the hearts of American car-fans, consisting of hemispherical compression chambers, single central camshaft and rod valve actuators (2 per cylinder). This engine comes from romantic 50ies, when it won numerous NASCAR races… Full speed ahead with your rear-wheel drive!