The History of Chrysler: From The 1920s to Today!
Have you ever wondered about the history of Chrysler? Interested in learning more about this automotive manufacturer? With a history that stretches nearly a century, there’s a lot to know about it and its vehicles . If you’re looking for an auto transport company for your car, or you’re just an automotive enthusiast learn more about Chrysler here.
The Origins of Chrysler & The First Chrysler Car
Chrysler was first founded on June 6, 1925 by Walter Chrysler, when the Maxwell Motor Company was reorganized into the Chrysler Corporation.
It was originally hired to take over and overhaul Maxwell Motor Company in the early 1920s. But in January 1924, they launched the Chrysler 70, their first-ever car. This 6-cylinder vehicle was designed with advanced technology at an affordable price. Features included a high-compression engine, an oil filter, and a carburetor air filter, as well as four-wheel hydraulic brakes and rubber engine mounts.
By 1925, the Maxwell marque was dropped from the Chrysler 70 – and the company was restructured into Chrysler. By 1936, the company was second overall in US sales, and it would continue to hold this position until 1949.
1920s-1930s – Introducing Multiple Vehicle Marques & Growing Sales
Starting in the late 1920s, Chrysler introduced multiple vehicle marques to distinguish its different vehicles. This included:
- Plymouth, introduced in 1928 for the low-end market
- DeSoto, introduced in 1928 for the medium-price market
- Dodge, purchased and introduced in 1928 for both trucks and passenger cars
Later on, Chrysler would introduce even more marques – such as the luxury-focused Imperial in 1955, as well as the low-cost Valiant marque in 1960.
1930s – “Airflow” Car Models
Starting in 1934, Chrysler released the Airflow models. These cars had a unique streamlined body, and were some of the first automobiles to be designed using the principles of aerodynamics – in fact, Chrysler was the first car company to introduce wind tunnels in the testing of these cars.
However, their styling was widely rejected by customers – who began purchasing Dodge and Plymouth cars. The Chrysler Airflow model remained unpopular throughout the Depression era – but the sales of Plymouth and Dodge cars helped keep Chrysler in business throughout the 1930s.
1940s – World War II Era
During World War II, most of Chrysler’s plants were converted to making wartime goods – such as radar antennas, missiles, and military vehicles, as well as components for the Manhattan Project, the U.S. government research project that resulted in the development of the atomic bomb.
1950s – The “Forward Look” Models & Further Innovation
The failure of the Airflow models had a negative effect on Chrysler’s styling and marketing – resulting in a series of very conventional, conservative Chrysler models throughout the 1940s and 1950s.
However, by the mid-50s, things had improved thanks to the Forward Look designs of Virgil Exner. His sleek, smooth and stylish designs were very forward-thinking – and were accompanied by technological advances such as the first-ever all-transistor car radio, which was released in 1956.
Further developments during this time included the Torsion-Aire suspension and Electronic Fuel Injection, but some significant quality issues with some car models and a national recession muted their success in the late 1950s.
1960s – The Unibody Construction Era
Chrysler was one of the first auto manufacturers to switch to a unibody (monocoque) design for its passenger cars. All vehicles (except the Imperial) were made with this construction by the 1960 model year. This type of construction provided better handling, enhanced crash safety and a number of other benefits.
It was also during this time that the Valiant compact car was introduced. Among other advancements, it was the first vehicle to use an alternator instead of an electrical generator – a change that would be added to all Chrysler products in 1961.
The 1960s also heralded further improvements for their vehicles such as advanced rust-proofing – and in 1964, the Plymouth Barracuda – the first-ever “pony car” was released. During this time, it also expanded into Europe with an investment in the British Rootes Group.
1970s – Tumultuous Times for Chrysler
Like many American automakers, Chrysler struggled during the 1970s, when pollution regulations and an increased focus on fuel economy (due to the oil 1973 oil crisis) led to lower sales volumes. At the same time, the introduction of economical, fuel-efficient cars from Japan also reduced overall sales volumes.
The Chrysler Cordoba, introduced in the mid-70s, was a success for the company. However, new vehicles including the Dodge Aspen and Plymouth Volare in the 1970s were not properly tested and incurred huge warranty costs – and destroyed quite a bit of customer loyalty. To help with floundering sales, Chrysler hired legendary executive Lee Iaccocca, who was recently fired from Ford, as CEO.
1980s – The Iacocca Era
Lee Iacocca, realizing the trouble Chrysler was in, turned to Congress and secured a $1.5 billion loan in 1979. Then, development of the “K-Car” line – which would save Chrysler – began.
In 1981, the Dodge Aries and Plymouth Reliant “K-Cars” were introduced. These small, fuel-efficient, and inexpensive compact cars sold rapidly – bringing Chrysler back from the financial brink in the 1980s. The introduction of the Dodge Grand Caravan minivan was also very successful.
Later in the 1980s, Chrysler began purchasing other automotive companies – like Lamborghini (sold off again in 1994) and AMC, a purchase that brought the Jeep marque under the Chrysler corporate umbrella.
1990s – Continued Success, European Expansion
Thanks to new models like the Dodge Ram, the continuing popularity of Jeep models, and other models like the Dodge Viper sports car, Chrysler continued to succeed in the 1990s, and began expanding and setting up car production facilities in Europe. In 1998, Daimler-Benz and Chrysler formed a 50-50 partnership.
2000s – DaimlerChrysler, Financial Crisis & More
The DaimlerChrysler partnership would prove to be very successful – and by the middle of 2005, it was considered the most successful of the “Big Three” Detroit automakers. However, in 2007, a majority stake of Chrysler was sold to Cerberus Capital Management for $7.4 billion.
Then, the automotive industry crisis of 2008 began – and Chrysler faced serious questions about whether it would survive in 2009. Eventually, President George W. Bush approved a $13.4 billion “rescue loan” for major American automakers including Chrysler. The company received an extra $6 billion in support for merging with Fiat in April, 2009.
Today – Fiat Chrysler Automobiles
In April 2009, Fiat S.p.A. and Chrysler formed an alliance as Chrysler filed for Chapter 11 bankruptcy protection. By May 2011, Fiat had repaid more than $7.4 billion in government loans, and bought the shares of Chrysler held by the US Treasury – creating Fiat Chrysler Automobiles, the current incarnation of the company.
The Future – Continued Growth & Success
Today, Fiat Chrysler Automobiles (FCA) is one of the most powerful and profitable automotive groups in America and abroad.
While there is no way to know what the future holds, it seems likely that FCA will continue to thrive. Especially thanks to the popularity of the Jeep brand, and new, innovative models like the Jeep Gladiator pickup truck. Thanks for reading this brief history of Chrysler. We hope that it’s been interesting and informative, and given you a new perspective on this major US-based automaker.
Article by Jay Mueller
https://www.a1autotransport.com/chrysler/
