1 / 15

Iacocca and Chrysler: How a Corporation was Saved

Iacocca and Chrysler: How a Corporation was Saved. Presented by: Steve Kaman. Outline. Background Life at Ford Chrysler Ripe for Change Enter Lee Iacocca Changes at Chrysler Iacocca’s Qualities of a Leader. Background. Lido Anthony Iacocca Born: October 15, 1924

erek
Télécharger la présentation

Iacocca and Chrysler: How a Corporation was Saved

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Iacocca and Chrysler:How a Corporation was Saved Presented by: Steve Kaman

  2. Outline • Background • Life at Ford • Chrysler Ripe for Change • Enter Lee Iacocca • Changes at Chrysler • Iacocca’s Qualities of a Leader

  3. Background • Lido Anthony Iacocca • Born: October 15, 1924 • Allentown, Pennsylvania • Son of Italian Immigrants • Experienced Racism • Mechanical Engineering at Lehigh • Masters from Princeton

  4. Career at Ford Motor Company • Began as student engineer in August 1946 • Decided to leave engineering • First job in sales • Rapidly moved up the corporate ladder • The Mustang • 8 years as president • Fired July 13, 1978

  5. Conditions at Chrysler • Over $1.2 billion in debt • Debts with hundreds of creditors • Sales dropping • Increasing Federal regulations • Top management not aware of what was going on • Habit of treating suppliers poorly

  6. The Chrysler Years - Problems • Immediately recognized numerous problems • All sections worked independently • 35 vice-presidents with no committee setup • No centralized accounting department • $500 million in inventory (not at dealerships) • Leasing cars to Avis and Hertz

  7. The Chrysler Years - Solutions • Built his own team • Established “quality circles” • Fired two Ad agencies, and hired Kenyon & Eckhardt • Showed suppliers the future • Gave $62 million rebate to Army

  8. The Chrysler Years – The Loan • Asked for guaranteed loans from government • Had to prove company on new path • Concerns over effects on free enterprise • Numerous concessions

  9. The Loan – The Next Step • Began working on concessions: • Reduced own salary to $1.00 • Used “help or go bankrupt with us” with suppliers • Explained that helping was only way banks would get money • Work cuts through unions

  10. The Loan – The Payback • The K-car – American alternative for economy car • Tied K-car with K-Mart • Load repaid in full, seven years early

  11. Continuing the Upswing • Brought back the convertible • Brought in the minivan

  12. Iacocca’s Qualities of an Innovator • Preparation – Art of Thought • Decisiveness – Creativity in Business • Management is motivating people – The Owner’s Manual for the Brain • Speak to people in their own language – The Owner’s Manual for the Brain

  13. Iacocca’s Qualities of an Innovator • Consulting workers – Programming Pearls • Don’t judge too early – Creativity in Business • Providing a dominant design – Mastering the Dynamics of Innovation

  14. Summary • Skills cultivated at Ford • Chrysler ripe for help • Iacocca steps up • Management, process and product innovation saved company • Connections between Iacocca and our readings

  15. References • Iacocca, Lee with Novak, William. Iacocca: An Autobiography. New York: Bantam Books, 1984. • Levin, Doron P. Behind the Wheel at Chrysler: The Iacocca Legacy. New York: Harcourt Brace and Company, 1995.

More Related