Chrysler
FCA US, LLC, doing business as Stellantis North America and known historically as Chrysler, is one of the "Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automotive company Stellantis. Stellantis North America sells vehicles worldwide under the Chrysler, Dodge, Jeep, and Ram Trucks nameplates. It also includes Mopar, its automotive parts and accessories division, and SRT, its performance automobile division. The division also distributes Alfa Romeo, Fiat, and Maserati vehicles in North America.
The original Chrysler Corporation was founded in 1925 by Walter Chrysler from the remains of the Maxwell Motor Company. In 1998, it merged with Daimler-Benz, which renamed itself DaimlerChrysler but in 2007 sold off its Chrysler stake. The company operated as Chrysler LLC through 2009, then as Chrysler Group LLC. In 2014, it was acquired by Fiat S.p.A.; it subsequently operated as a subsidiary of the new Fiat Chrysler Automobiles, then as a subsidiary of Stellantis, the company formed from the 2021 merger of FCA and PSA Group.
After founding the company, Walter Chrysler used the General Motors brand diversification and hierarchy strategy that he had become familiar with when he worked in the Buick division at General Motors. He then acquired Fargo Trucks and the Dodge Brothers Company, and created the Plymouth and DeSoto brands in 1928. Facing postwar declines in market share, productivity, and profitability, as GM and Ford were growing, Chrysler borrowed $250 million in 1954 from Prudential Insurance to pay for expansion and updated car designs.
Chrysler expanded into Europe by taking control of French, British, and Spanish auto companies in the 1960s; Chrysler Europe was sold in 1978 to PSA Peugeot Citroën for a nominal $1. The company struggled to adapt to changing markets, increased U.S. import competition, and safety and environmental regulation in the 1970s. It began an engineering partnership with Mitsubishi Motors, and began selling Mitsubishi vehicles branded as Dodge and Plymouth in North America. On the verge of bankruptcy in the late 1970s, it was saved by $1.5 billion in loan guarantees from the U.S. government. New CEO Lee Iacocca was credited with returning the company to profitability in the 1980s. In 1985, Diamond-Star Motors was created, further expanding the Chrysler-Mitsubishi relationship. In 1987, Chrysler acquired American Motors Corporation, which brought the profitable Jeep, as well as the newly formed Eagle, brands under the Chrysler umbrella. In 1998, Chrysler merged with German automaker Daimler-Benz to form DaimlerChrysler AG; the merger proved contentious with investors. As a result, Chrysler was sold to Cerberus Capital Management and renamed Chrysler LLC in 2007.
Like the other Big Three automobile manufacturers, Chrysler was impacted by the automotive industry crisis of 2008–2010. The company remained in business through a combination of negotiations with creditors, filing for Chapter 11 bankruptcy reorganization on April 30, 2009, and participating in a bailout from the U.S. government through the Troubled Asset Relief Program. On June 10, 2009, Chrysler emerged from the bankruptcy proceedings with the United Auto Workers pension fund, Fiat S.p.A., and the U.S. and Canadian governments as principal owners. The bankruptcy resulted in Chrysler defaulting on over $4 billion in debts. In May 2011, Chrysler finished repaying its obligations to the U.S. government five years early, although the cost to the American taxpayer was $1.3 billion.
Over the next few years, Fiat S.p.A. gradually acquired the other parties' shares. In January 2014, Fiat acquired the rest of Chrysler from the United Auto Workers retiree health trust, making Chrysler Group a subsidiary of Fiat S.p.A. In May 2014, Fiat Chrysler Automobiles was established by merging Fiat S.p.A. into the company. Chrysler Group LLC remained a subsidiary until December 15, 2014, when it was renamed FCA US LLC, to reflect the Fiat-Chrysler merger.
As a result of the merger between FCA and PSA, on 17 January 2021 it became a subsidiary of the Stellantis Group.
History
1925–1998: Chrysler Corporation
The Chrysler company was founded by Walter Chrysler on June 6, 1925, when the Maxwell Motor Company was re-organized into the Chrysler Corporation. The company was headquartered in the Detroit enclave of Highland Park, where it remained until completing the move to its present Auburn Hills location in 1996.Chrysler had arrived at the ailing Maxwell-Chalmers company in the early 1920s, hired to overhaul the company's troubled operations. In late 1923, production of the Chalmers automobile was ended.
In January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler Six was designed to provide customers with an advanced, well-engineered car, at an affordable price. Elements of this car are traceable to a prototype which had been under development at Willys during Chrysler's tenure The original 1924 Chrysler included a carburetor air filter, high compression engine, full pressure lubrication, and an oil filter, features absent from most autos at the time. Among the innovations in its early years were the first practical mass-produced four-wheel hydraulic brakes, a system nearly completely engineered by Chrysler with patents assigned to Lockheed, and rubber engine mounts, called "Floating Power" to reduce vibration. Chrysler also developed a wheel with a ridged rim, designed to keep a deflated tire from flying off the wheel. This wheel was eventually adopted by the auto industry worldwide.
The Maxwell brand was dropped after the 1925 model year, with the new, lower-priced four-cylinder Chryslers introduced for the 1926 year being badge-engineered Maxwells. The advanced engineering and testing that went into Chrysler Corporation cars helped to push the company to the second-place position in U.S. sales by 1936, which it held until 1949.
In 1928, the Chrysler Corporation began dividing its vehicle offerings by price class and function. The Plymouth brand was introduced at the low-priced end of the market. At the same time, the DeSoto brand was introduced in the medium-price field. Also in 1928, Chrysler bought the Dodge Brothers automobile and truck company and continued the successful Dodge line of automobiles and Fargo range of trucks. By the mid-1930s, the DeSoto and Dodge divisions would trade places in the corporate hierarchy.
The Imperial name had been used since 1926 but was never a separate make, just the top-of-the-line Chrysler. However, in 1955, the company decided to offer it as its own make/brand and division to better compete with its rivals, Lincoln and Cadillac. This addition changed the company's traditional four-make lineup to five : Plymouth, Dodge, DeSoto, Chrysler, and the now-separate Imperial.
On April 28, 1955, Chrysler and Philco announced the development and production of the World's First All-Transistor car radio. The all-transistor car radio, Mopar model 914HR, developed and produced by Chrysler and Philco, was a $150 option on the 1956 Imperial automobile models. Philco began manufacturing this radio in the fall of 1955 at its Sandusky Ohio plant.
On September 28, 1957, Chrysler announced the first production electronic fuel injection, as an option on some of its new 1958 car models. The first attempt to use this system was by American Motors on the 1957 Rambler Rebel. Bendix Corporation's Electrojector used a transistor "computer brain" modulator box, but teething problems on pre-production cars meant very few cars were made. The EFI system in the Rambler ran fine in warm weather, but suffered hard starting in cooler temperatures and AMC decided not to use this EFI system on its 1957 Rambler Rebel production cars that were sold to the public. Chrysler also used the Bendix "Electrojector" fuel injection system and only around 35 vehicles were built with this option, on its 1958 production-built car models. Owners of EFI Chryslers were so dissatisfied that all but one were retrofitted with carburetors.
The Valiant was also introduced for the 1960 model year as a distinct brand. In the U.S. market, Valiant was made a model in the Plymouth line for 1961 and the DeSoto make was discontinued in 1961. With those exceptions per applicable year and market, Chrysler's range from lowest to highest price from the 1940s through the 1970s was Valiant, Plymouth, Dodge, DeSoto, Chrysler, and Imperial.
In 1954, Chrysler was the exclusive provider of its Hemi V8 engine in the Facel Vega, a French coachbuilder that offered their own line of hand-built luxury performance cars, coupled with the PowerFlite and TorqueFlite automatic transmissions. The Facel Vega Excellence was a four-door hardtop with rear-hinged coach doors that listed for US$12,800. In 1960 Facel Vega introduced the smaller Facellia sports car to capitalize on their sales success with Chrysler supplied engines. At the time, Chrysler didn't produce a four-cylinder engine, and the company had to find alternatives before production began.
In 1960, Chrysler became the first of the "Big Three" automakers to switch to unibody construction for its passenger cars, with the exception of Imperial, which continued to be produced on the body-on-frame platform prevalent in the US until 1967, when the unibody construction had proven itself to be reliable enough that Chrysler was willing to also apply it to its flagship.
From 1963 through 1969, Chrysler increased its existing stakes to take complete control of the French Simca, British Rootes, and Spanish Barreiros companies, merging them into Chrysler Europe in 1967. In the 1970s, an engineering partnership was established with Mitsubishi Motors, and Chrysler began selling Mitsubishi vehicles branded as Dodge and Plymouth in North America.
Chrysler struggled to adapt to the changing environment of the 1970s. When consumer tastes shifted to smaller cars in the early 1970s, particularly after the 1973 oil crisis, Chrysler could not meet the demand, although their compact models on the "A" body platform, the Dodge Dart and Plymouth Valiant, had proven economy and reliability and sold very well. Additional burdens came from increased US import competition, and tougher government regulation of car safety, fuel economy, and emissions. As the smallest of the Big 3 US automakers, Chrysler lacked the financial resources to meet all of these challenges. 1975 would be the last year for Imperial, except for an ill-fated attempt at revival in 1981-1983, for its low sales no longer justified it as a separate brand when it didn't offer much over a high-end Chrysler New Yorker. In 1976, with the demise of the reliable Dart/Valiant, quality control declined. Their replacements, the Dodge Aspen and Plymouth Volare, were comfortable and had good roadability, but owners soon experienced major reliability problems which crept into other models as well. Engines failed and/or did not run well, and premature rust plagued bodies. In 1978, Lee Iacocca was brought in to turn the company around, and in 1979 Iacocca sought US government help. Congress later passed the Loan Guarantee Act providing $1.5 billion in loan guarantees. The Loan Guarantee Act required that Chrysler also obtain $2 billion in concessions or aid from sources outside the federal government, which included interest rate reductions for $650 million of the savings, asset sales of $300 million, local and state tax concessions of $250 million, and wage reductions of about $590 million along with a $50 million stock offering. $180 million was to come from concessions from dealers and suppliers. Also in 1978, Iacocca offloaded the ailing European operation to PSA Peugeot Citroën for a nominal $1, taking with it the group's substantial losses and debts which had been dragging the rest of the business down.
After a period of plant closures and salary cuts agreed to by both management and the auto unions, the Plymouth Reliant and Dodge Aries compact was introduced in 1981 on the all-new Chrysler K platform, which was developed from the Plymouth Horizon and Dodge Omni hatchbacks, which were introduced in 1978. Chrysler returned to profitability in 1980, repaying the loans with interest in 1983. The Omni/Horizon were first offered with four-cylinder engines provided by Chrysler Europe brand Simca, then Volkswagen, until the all-new Chrysler engineered Chrysler K engine arrived. Chrysler had not manufactured a four-cylinder engine since 1933 when the Chrysler flathead four-cylinder was canceled. In November 1983, the Dodge Caravan/Plymouth Voyager was introduced, built on a modified K platform, establishing the minivan as a major category, and initiating Chrysler's return to stability.
In 1985, Diamond-Star Motors was created, further expanding the Chrysler-Mitsubishi relationship.
File:ChryslerHQ-highres-colored.jpg|thumb|150px|Aerial view of the Chrysler World Headquarters and Technology Center in Auburn Hills, Michigan, completed in 1996. Photo was taken in 2002.
In 1985, Chrysler entered an agreement with American Motors Corporation to produce Chrysler M platform rear-drive, as well as Dodge Omnis front wheel drive cars, in AMC's Kenosha, Wisconsin, plant. In 1987, Chrysler acquired the 47% ownership of AMC that was held by Renault. The remaining outstanding shares of AMC were bought on the NYSE by August 5, 1987, making the deal valued somewhere between US$1.7 billion and US$2 billion, depending on how costs were counted. Chrysler CEO Lee Iacocca wanted the Jeep brand, particularly the Jeep Grand Cherokee that was under development, the new world-class manufacturing plant in Bramalea, Ontario, and AMC's engineering and management talent that became critical for Chrysler's future success. Chrysler established the Jeep/Eagle division as a "specialty" arm to market products distinctly different from the K-car-based products with the Eagle cars targeting import buyers. Former AMC dealers sold Jeep vehicles and various new Eagle models, as well as Chrysler products, strengthening the automaker's retail distribution system.
Eurostar, a joint venture between Chrysler and Steyr-Daimler-Puch, began producing the Chrysler Voyager in Austria for European markets in 1992.