The Chrysler "Bailout" of 1979
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- čas přidán 25. 08. 2024
- From Wikipedia: Realizing that the company would go out of business if it did not receive a significant amount of money for a turnaround, Iacocca approached the United States Congress in 1979 and asked for a loan guarantee. While some have said that Congress lent Chrysler the money, the government only guaranteed the loans. Most observers thought this was an unprecedented move, but Iacocca pointed to the government's bailouts of the airline and railroad industries. He argued that there were more jobs at stake in Chrysler's possible demise. Iacocca received the loan guarantee from the government, whose decision caused controversy.
Chrysler released the first of the K-Car line: the Dodge Aries and Plymouth Reliant, in 1981. Similar to the later minivan, these compact automobiles were based on design proposals which Ford had rejected during Iacocca's (and Sperlich's) tenure. Released in the middle of the major 1980-1982 recession, the small, efficient and inexpensive front-wheel drive cars sold rapidly. In addition, Iacocca re-introduced the big Imperial as the company's flagship. The new model had all of the newest technologies of the time, including fully electronic fuel injection (the first car in the U.S. to be so equipped) and all-digital dashboard.
Chrysler introduced the minivan, chiefly Sperlich's "baby," in the fall of 1983. It led the automobile industry in sales for 25 years.[10] Because of the K-cars and minivans, along with the reforms Iacocca implemented, the company turned around quickly and was able to repay the government-backed loans seven years earlier than expected.
The Jeep Grand Cherokee design was the driving force behind Chrysler's buyout of AMC; Iacocca desperately wanted it.
Iacocca led Chrysler's acquisition of AMC in 1987, which brought the profitable Jeep division under the corporate umbrella. It created the short-lived Eagle division, formed from the remnants of AMC. By this time, AMC had already finished most of the work with the Jeep Grand Cherokee, which Iacocca wanted. The Grand Cherokee would not be released until 1992 for the 1993 model year, the same year that Iacocca retired.
Throughout the 1980s, Iacocca appeared in a series of commercials for the company's vehicles, using the ad campaign, "The pride is back", to denote the turnaround of the corporation. He also used what was to become his trademark phrase: "If you can find a better car, buy it."
Iacocca retired as President, CEO and Chairman of Chrysler at the end of 1992.
Chrysler was bailed out in 1979, and again in 2008. Lee Iacocca was long gone from Chrysler when the second bail out took place. It was Diamler the German auto maker who raided Chrysler in 2008, and dumped them afterwards.
Total jobs saved
600,000 jobs
Suppliers...new plant openings...new markets
Thank God for Lee and the government backed loans
I was in this at Chrysler. The loan was brilliant and we paided it back early. Buy American products and support us. I was pushing that thought starting in 72 and the UAW wanted pay check development instead of product development. Mr. Iacocca was the best.
you it back - every cent!
!
1.5 billion that's a rounding error now a days
The country was doubting itself in 79? Look at us now 😬
Rest in peace old man
Also responsible for the Ford Pinto.
@@chargermaster586 what’s wrong with the Pinto
He had a plan, as with the original 2008 bailout, the Detroit three had no plans and wanted money just to keep doing the same things.
Next downturn, they will bailout all three.
That loan was paid back in short order. Miracle in Detroit. It was needed. All done by the Grace of God. He made it possible.
If memory serves me correctly ...hmm, I think PBS in Detroit either 1999 or 98, recorded it originally with a VHS ...kept the tape, made the transfer 4 months ago. I wanted to make a point with this, in comparison then, as too today with 'bailouts'.
In most cases, government will always bail out big business, because of politics and jobs and the effect on the economy it will have
I Loved Working For Him! Chrysler St. Louis Assembly Plant #1 South Fenton, Missouri "Retired" 2007
Thanks for the upload. Working on a project in college right now on that very topic
It was a loan and paid back early. Chrysler in 78 and later was crashing. I was talking about that at Engineering and claimed in 1972 that we needed product development and not the normal union paycheck development. Well they ignored me lots more on this story. Flash forward to 80 and a group of chrysler management and such was visiting all us employees that were leftover. When they came to my test cell to give me the work hard speach they realized i was loud about this subject 10 years ago, before 200,000 souls lost their jobs. More.....
Sure
4:02 What's this guy saying? If Chrysler hadn't been saved the taxes used to fund welfare would also have been lost. People seem to forget that the government only gets money from taxes collected from individuals and successful businesses.
Typical PBS democrap nonsense. They searched far and wide to find the most liberal professors to give their "expert" analysis.
or let other car brands fill the space left by Chrysler, they'll pay just as much if not more in taxes
Wrong! The government gets nothing from the taxpayer except taxes receipts that pays interest on the debt. We have been borrowing from the future. Welfare was a built-in stabilizer. The taxpayer jobs that they have, have been subsidized since 1940. Why do you think we have 22 trillion in debt! Chrysler was saved to protect American jobs, the UAW and avoid a recession. I remember I was there we had high inflation and interest rates were near 20%. The next year Regan became President.
@@KiloByte69 As I recall, his position was the same as most conservative Republicans who didn't want to back the loans. Chrysler, by the way, repaid those loans with interest and ahead of schedule, so the it was a win-win across the board.
@@KiloByte69 Dude keep your fucking political Views To Your You Trump Support evangelical Non Denominational loser
Where did you get the video?
1:45 Is that Snoop Dogg??
Yes, then Kevin Bacon
Too big to Fail?
1:10 was this footage from 1978 or 2008?
smithraymond09029 this footage is from probably 1979, no later. The interviews and documentary was shown on PBS back in 1999.
Yes. Just pointing out how the auto industry came back 20 years later and asked for another bailout during the great recession.
smithraymond09029 They didn't have a choice; it was either ask for another bailout like they did back in the late 70s or go completely broke, leaving just the imports from Japan, Germany, Sweden, so forth.
+smithraymond09029 1979......Iaccoca retired in 92
+EricEbac22 Oh we had a choice alright, let them fail. If American cars suck? Then so be it. If my beloved hometown Detroit is putting out junk? Then they deserve to fail, and let the competitors with a better quality product take over that market.
Economics professor is a fool [near the end]. The Chrysler 'bailout' was a loan. Save jobs and get interest paid back. Welfare for single moms is a giveaway that never gets paid back. Well, unless you count the extra kids she will pop out because she ain't payin; for 'em.
+wiibaron He does have a point, but not also 'yes' it's not exactly a strong one. Point being, ...the question still remains: Why the Hell is Chrysler getting a bailout?? If you can't compete with the market, and your product sucks? You should fail and not be saved by the government, in what is supposed to be a 'free' market society. Otherwise, who else wants to fail and have a bailout now? ...and here we are 36 years later, look what happened.
AugustMedia Yeah look what happened: Chrysler paid the money back with interest and 35 years later sold 2.3 million cars around the world and 100,000 people have a good paying job making selling and servicing their cars. Horrible!!
wiibaron I'm not going to deny the outcome of this bailout was good. No denying that at all. BUT... bailouts are not a good thing. If people are simply 'bailed out' in general, business-wise', then there is no fear of failure in that sense...then we're going to have problems, business taking cue from that, and not really caring about progress...why should they? They'll probably be bailed out of trouble. Besides...what kind of competition does this bring?
+wiibaron Only to shit on the American taxpayer once again in 2008.
The people who worked there could have worked somewhere else, and have to suffer the same pay cuts that everyone else did.
Skyline Fever And again to be paid back, with interest, and have the jobs that go along with being saved. People with jobs pay taxes instead of being paid unemployment. Same story. And the year was 2009...
czcams.com/video/Cp0frKi87Qo/video.htmlm41s - Is that Snoop Dogg???
+JaysDMC yes i saw him too 1 ,42 .his first job just before he made it.
@Ike N snoop dogs daddy?
Iacocca saved Chrysler but he should have been retired by about 1988. His short-sightedness and old school thinking crippled Chrysler later and his trying to get his job back drove them to the arms of Diamler. A more forward looking guy might have found an acquisition that let Chrysler be senior partner in the 1990s.
Well you hang around long enough you’re going to expose fault. Mustang then the pinto. Saves Chrysler and then slows its progress. Had he retired though could Chrysler afford to lose him. I don’t know if it can buy your theory
You couldn’t be any more wrong on that. When he stepped down in 92, Chrysler was THE most profitable company and had some (then) ground breaking product development. Bob Eaton ran it sideways then sold it. Daimler bought it, fired some of the execs, stole the talent and resources and let things slip.