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This page contains five
articles as follows:
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A
Brief Look at Walter P. Chrysler
By Mike
Petersen
The Chrysler
Building, by
Ian Smale
Chrysler Corporation,
1925 -1928 by
Dr. David George Briant
Chrysler
Corporation's Pulsating Years, 1930 - 1938 by Dr. David George Briant
Early Chrysler
History, 1903 - 1928 by Cliff Lockwood
History of the Chrysler 300 - by Tony Rinaldi (PDF
download)
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Related article American Automotive Industry History - Chrysler, GM, and Ford - A Rise and Decline of an American Industry
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Walter P Chrysler
Time Magazine's Man of the
Year - 1928
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A Brief
Look at Walter P. Chrysler By Mike Petersen
This article
was featured in the November, 1986 issue of WPC News
Chrysler, the last independent car manufacturer
to enter the automotive industry. Most of us see the name
everyday, but few know much about the man. We can still hear him
speak to us from the pages of his autobiography "Life of an
American Workman." In the book "Birth of a Giant," by
Richard Crabb, all of the personalities and the events of the early
automobile days are tied together. These two books are highly
recommended reading as a means of understanding where the industry
came from and to reflect on where it may be going.
Chrysler was the third of four children. He was born in Wamego,
Kansas in 1875 ( raised in Ellis,
Kansas ) and recalled later in life the Indian scare of 1880 and
the six shooter that his father, a locomotive engineer,
carried. "Scientific American" was Chrysler's
favorite magazine.
His first job as a janitor brought him 10 cents an
hour. In 1893 he took a cut in pay to 5 cents an hour in
order to enter a four year machinist apprentice program.
By the second year he was earning 10 cents an hour, then 12.5 cents
in the third year, and finally 15 cents an hour in the fourth
year. During this time he studied air brakes before the Union
Pacific Railroad installed them, and he studied steam heat that was
replacing the coal stoves in passenger cars.
In 1897 Chrysler moved to Wellington, Kansas to work for
Santa Fe Railroads and to learn new things. After two
weeks he was at the top of the pay scale -- 27.5 cents an hour. So he
went back to Ellis, Kansas for 30 cents an hour and then on to
Denver, Colorado where a job at Colorado & Southern lasted two
weeks. From there he hopped freights and moved around looking
for work in places like Cheyenne, Wyoming.
In 1900, Chrysler was back to 30 cents an hour in Salt Lake City,
Utah working for the Denver and Rio Grande Western. He had saved $60
and took the big plunge -- marrying Della Forker from Ellis, Kansas.
At this time Chrysler took an electrical engineering
correspondence course.
Chrysler was earning $90 a month as a foreman over 90 men in
1902. He took more correspondence courses and moved
on to the Colorado and Southern Railroad in Trinidad, Colorado for
$105 a month as general foreman. In 21 months he became a
master mechanic; only 29 years old, yet the boss of 1000 men and
earning $140 a month. He was then transferred to Childress,
Texas to build a new shop with a raise in pay to $160 a month. At the
completion of that assignment Chrysler went to Chicago Great Western
in Oelwein, Iowa at $200 a month and had a life savings of $500.
In 15 months Chrysler moved up to general master mechanic and just 3
months later to superintendent of motive power for $350 a
month. A keen interest in automobiles started at the Chicago
Automobile Show in 1908. The Locomobile touring car was on
display and could be purchased for a mere $5,000. Chrysler put up
$700, all of his savings, and borrowed $4,300 in a loan arranged by
Ralph Van Vechten and co-signed by Bill Causey. Chrysler
took the Locomobile apart as soon as he got it home and studied
it. He did not drive it for three months; however, on the
first outing in the car, indeed the first time behind the wheel of
any car, Walter P. Chrysler ran into the neighbor's ditch and garden.
At 34 years of age he was in charge of thousands of men and millions
of dollars worth of equipment, stilt at $350 a month. Chrysler took
more correspondence courses in engineering and after an unpleasant
meeting with the new president, Chrysler took a cut in pay to $275 a
month in order to work for American Locomotive Company as a foreman
in the Allegheny shop in Pittsburgh. Here he bought
another car -- a Stearns-Duryea 6 cylinder.
Chrysler was promoted to works manager at the age of
36. Storrow, director of American Locomotive
Company, got Chrysler together with Charles Nash, who was then
president of General Motors. Chrysler was earning $12,000 a year but
accepted a job as works manager at Buick for $6,000 a year. He was
finally in the automobile business. In his first
week at Buick he reportedly earned his first year's pay.
It seems there were no records on cars released for test drives and
Buick was "losing" one to four cars per day.
This was brought under control rather quickly. A
piece-work schedule was established at Buick. Elimination of a
chassis gloss coat cut the time per chassis of 4 days to 2 days and
production increased from 45 a day to 75 a day. An assembly line was
started along with spray paint and the idea of painting before
assembly -- production rose to 200 a day. Other changes essentially
involved the substitution of metallurgy for cabinet making. After
three years and no raise, Chrysler asked for $25,000 a year.
In that year, 1915, Billy Durant returned to gain control of GM for
the second time. Chrysler was general manager of Buick in 1916
when Durant offered him the presidency of Buick. Chrysler accepted
(he also backed out of the formation of Nash Motors Company) and
received $120,000 a year and $380,000 a year in GM stock at the price
of the stock on the day of the contract. During these
years at Buick, Chrysler became acquainted with K.T. Keller, a young
master mechanic.
Chrysler quit GM in 1920 as the president of Buick and the
vice-president of GM in charge of operations. This action came about
when Durant announced at a civic meeting that GM would build a new
plant in Flint, Michigan to manufacture Buick frames. Chrysler had
arranged with A.O. Smith to build the 1921 Buick frames, so this
surprise announcement resulted in Chrysler's resignation.
At forty five years of age Chrysler was retired and puttering about his
Detroit office. Willys-Overland was $50 million in debt and
back into the picture comes Ralph Van Vechten who earlier arranged
Chrysler's $4,300 car loan. Chrysler was asked to come into
Willys and save the banker's $50 million but the risk of not pulling
this off was so great that Chyrsler asked for 2 years at $1 million
per year. He was concerned that failure to save Willys would
reflect on his abilities. In two years the debt was reduced to
$18 million.
During those two years Chrysler brought in Fred Zeder, Owen Skelton,
and Carl Breer to an engineering center in Elizabeth, New Jersey.
These men (all of whom were at Studebaker the year before)
worked on a new car and a new engine. Failure to
interest Willys executives in a new engine lead to the break with
Willys at the end of two years. At this time Maxwell
Motors was $26 million in debt and Chrysler was asked to help out,
and he did at a salary of $100,000 a year and a stock option. He
secured a loan of $15 million for Maxwell and sold cars out of
existing inventory for $995 -- a profit of $5 per car.
Chrysler went after the New Jersey engineering center for $5 million,
but Durant outbid him at $5,525,000. The work done on the new car was
turned over to Durant in the deal, and thus the Flint car came into
existence. Zeder, Skelton, and Breer were moved to the Chalmers plant
in Detroit as part of Maxwell to continue work on the new engine.
At this point, Studebaker made an unsuccessful attempt to buy Maxwell
and the new high compression engine. This engine, and a new car,
required $5 million to get into production in 1923, money that
Maxwell did not have. The 1924 New York Auto Show was an excellent
place to display the new car and secure a loan, but since the car was
not in production it could not be displayed at the show (Ed. Note:
recent evidence uncovered at the Detroit Public Library show s that
Chrysler had a display at the NY Auto Show. All the attention,
however, at the coup of providing a display at the Commodore has led
many astray -- even the story In Chryler's own book). Chrysler rented
the lobby of the Hotel Commodore, the show's headquarters and a place
where men in the industry stayed during the show, and displayed the
new Chrysler.
Financing was secured from Ed Tinker of the Chase Securities
Corporation and 32, 000 Chryslers were built in 1924 and sold for
$1595 — the same as Buick. This car was a true 70 mph performer
with four wheel hydraulic brakes and a replaceable oil
filter. On $5 million debt the company had a net profit
of $4,115,000!
in 1925, MaxwelI Motor Corporation was re-organized into the Chrysler
Corporation and Chrysler bought the banker's stock at
$16. In 1926, K.T. Keller, from the Buick days, came on
board as general manager and become president a few years later. Also
that year the Chrysler 50 replaced the Maxwell and competed with
Dodge. The model numbers indicated top speeds - 50, 60, 70 and 80 mph
-- and later models used 62 and 72 designations to indicate improved
models.
Chrysler was in fifth place in 1927 with sales of 192,000
cars. $75 million was needed to build a foundry, forge,
and new facilities; Chrysler became acquainted with Clarence
DiIIon, of Dillon, Reed and Company, who had brought Dodge in 1924
for $146 million. In May, 1927, Chrysler and Dillon negotiated
for 5 days straight in a suite at the Ritz-Carlton Hotel and at 5
p.m. on the fifth day, the deal was struck -- Dodge was sold for
$225,000,000 (comprised of $170,000,000 in Chrysler stock and
$55,000,000 in Dodge liabilities). Chrysler had canvas signs made up
in advance that were installed that evening at the Dodge Main -- they
simply read "Chrysler Corporation - Dodge
Division". Chrysler's capacity was increased five
fold!
K.T. Keller became Dodge president in 1929 and by 1937 Chrysler was
free of debts. There were 76,000 employees.
Chrysler died on August 18, 1940 and was not there to witness the
fine contribution Chrysler Corporation made to the war effort. This
effort was perhaps the most fitting tribute to the man and to the
company that could get things done. In May of 1940, Keller was asked
to build tanks and from a set of blueprints and a cornfield, tanks
were rumbling out the door of a new plant in just seven months!
Really remarkable.
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The
Chrysler Building
405 Lexington Avenue,
Manhattan, New York City.
This amazing building
represents the pinnacle of achievement for Walter P.
Chrysler. After putting together the Chrysler Corporation
from the remnants of Maxwell-Chalmers in 1925, acquiring the Dodge
Brothers Company in 1928 and introducing both the Plymouth and
DeSoto the same year, thus becoming the number 3 position
automaker, Walter Chrysler decided to wind down a little and do
something different. This was the project.
Built from 1928 -1930 and designed by well known architect William
Van Alen, it was briefly the tallest building in the world, until
it was surpassed in height (but not beauty) by the Empire
State Building in 1931, and today represents the finest of
the Art Deco style and indeed is probably the
most beautiful Art Deco building in the world.
Walter Chrysler had his personal office here for a number of
years. Contrary to popular belief this building was not
built or financed by the Chrysler Corporation but was a personal
project of Walter Chrysler himself to be given as a business
venture for his sons Walter Jr. and Jack Chrysler who were not
interested in the automobile business. The building is
77 stories and the height to the top of its spire is 1048
feet. The tower culminates in a beautiful, tapered stainless
steel crown that supports the famous spire at its peak.
The
building has a lot of ornamentation that is based on features that
were being used on Chrysler cars of the day. The corners of the
sixty first floor are graced with eagles, replicas of the
1929 Chrysler hood ornaments. On the thirty first
floor, the corner ornamentations are replicas of 1929 Chrysler
radiator caps. The building is steel frame, masonry
construction, and metal cladding. There are 3,862
windows on its facade and 4 banks of 8 elevators designed by Otis
Elevator Corporation. Currently, the Chrysler
Building is tied for 4th as the tallest building in New York City.
(In 2007 Bank of America Tower increased their spire to 1,200 feet
taking 2nd. The under construction One World Trade Center is in 3rd
and The New York Times Building, opened in 2007, is exactly the
same height.). It does have the distinction of being the
world's tallest brick building.
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Chrysler Building, Entry Way Details
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The Spire
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CHRYSLER CORPORATION
1925-1998
By Dr. David George Briant
"To the Stockholders of the Chrysler Corporation: The past
year has been one of notable progress and achievement for your
business. With an increased volume amounting to 167% of that of
the previous calendar year, 1924, the net profits for the calendar
year 1925 aggregate $17,126,135.85 after making provision for Federal
Taxes estimated at $2,471,000. This is nearly four times the
net profit earned during the preceding year and reflects the improved
position won by Chrysler cars in the automobile trade."
- Walter P. Chrysler, March 9, 1926, from the first Annual
Report message by WPC following incorporation in 1925.
Though
Chrysler Corporation came to play a major role in the life of the
United States of America the essential character of the firm stemmed
from the genius of Walter Percy Chrysler (WPC) - truly self-described
as An American Workman. His leadership sparked and drove
efforts to counterattack the infamous Great Depression.
Certainly, one of the most compelling industrial sagas of the 20th
century was the rise of the Chrysler Corporation. WPC's 1924
Chrysler Six came to life as the third engine design he spawned
although the first to get into production. His work in turning
Buick around led eventually to his rescue successes at Willys and
later Maxwell-Chalmers. The details of this background are told
in Willem L. Wireman's masterly book Chrysler Engines, 1922-1998
(SAE International, Warrendale, PA, 2007). WPC's
association with engineers Fred Zeder, Carl Breer and Owen Skelton
yielded engines and a host of other vehicle advances over the years
ahead. Public acceptance had to be earned for survival given
the more than 2,000 firms that had tried and failed - and entry
into and subsequent success in an established oligopoly meant
leadership of the first order. While the adage -
preparation plus opportunity equals luck - is too simplistic, indeed
WPC had the right stuff at precisely the right time in history.
There was boldness in engineering, care in manufacturing, skill in
marketing, yes. But more, far more . . .
Examination of the record reveals clearly that conservative financial
controls kept the corporate ship mid-channel even in stormy
weather. Innovations and technical "firsts" came
along steadily throughout the worst business depression in all
history. Only the coming of World War II finally expunged its
effects. Despite the times, Chrysler's reputation soared.
In fact, the competition mounted more that one defamation campaign to
offset the firm's potency of those days. Indeed, the federal
government was watching - and when the war tocsin sounded Chrysler
was tapped to take on important projects, including tanks, work that
was key to obtaining the atom bomb before Germany, and on into motivating
missile programs to meet Cold War needs. Volume and dollar
figures used herein are Calendar Year totals as published in official
Annual Reports issued by Chrysler Corporation and DaimlerChrysler AG.
WPC served as Chairman of the Board of Directors until his death in
1940 at age 65. He had appointed Kaufman Thuma Keller to the
presidency in 1935, turning over daily operations at that
point. WPC remained a strong influential force until his stroke
in 1938. The years 1926 to 1940 encompass 1929"s peak and
the descent into the world's Great Depression. WPC rolled up
his sleeves and went on the offensive to ensure that his company
would not only survive, but also prosper. Financial management
was deliberately conservative while engineering inventiveness continued
to be encouraged via uncut budgets throughout the period. In
1924, under the Maxwell name, the firm achieved seventh place in
sales dollar terms (from moving 82,289--a mix of Chrysler and Maxwell
vehicles) and again, now newly incorporated as the Chrysler
Corporation, seventh place in 1925 (106,857). At December 31,
1925, the new firm had current assets of $28,021,131.27 versus
1924"s $11,755,227.11. Total assets stood at $85,602,497.43
(including "good will" at $25,000,000). Net profits
were an astonishing $17,126,135.85. The years 1926
through 1940--brought happenings few fiction writers could have
conceived, much less put to print! Progress continued at an
amazing rate as public acceptance grew.
At the close of 1926, the firm occupied fifth place (fourth place
according to the National Automobile Chamber of Commerce) based on
selling 170,392 vehicles. As Fisher bodies became unavailable,
Chrysler bought Kercheval and worked with Briggs, Hayes, and soon
Budd. Gross profit from the sale of vehicles and parts for the
year totaled $29,074,112.92. Exports were 10.29 percent
of business done. Net profit totaled $15,448,586.84.
Dividends paid amounted to $9,846,828. Facilities were
provided for off shore assembly in Germany and Australia. By
introducing three new models of Chrysler brand vehicles for 1926 the
firm announced extended market coverage across the entire passenger
car field of the time. The Chrysler "70" had
made her magnificent entrance for 1924 and now was named
"G-70" and joined by the Chrysler "58" and
Imperial "E-80". These numerical designations
corresponded to the respective top speed abilities of each line -
recognizing, of course, that varying bodies, loads, road conditions,
vehicle tune, and driver skills affected results. They all were
"performers" in their day.
1927 volume moved to 192,083 for third place in the industry
via Series I-50, H-60, G-70, aka Finer 70, and Imperial E-80
offerings. Net profit reached $19,484,880.11 with
dividends paid totaling $9,852,352.75. Exports were important,
with 14.56 percent compared to 10.29 (1926), 8.28 (1925), and 5.42
(1924). A strong balance sheet showed that current assets exceeded
current liabilities by a ratio of 4.2 to 1. Carl Breer began
serious wind-tunnel research leading to the breakthrough Airflow
engineering. In-Line Eight engine development was begun. Late
in 1927, Chrysler fielded the 52, 62, 72, and Imperial 80L (now with
a more powerful 309.3 CID Six) as 1928 models. Plans were afoot
to establish Plymouth (out of the 52) and create De Soto. WPC
led the entry of the firm into the marine engine field, linked to his
interest in boating. In short order, the word spread that his
Chrysler Imperial Marine Engines were sturdy and efficient, quite
beyond any competition of the time. Selected Chrysler employees
were trained to support the new product line - used by Chris Craft
initially, followed shortly by Gar Wood, Hacker, and Sea Lyon.
In 1928 sales of automobiles and parts brought in $315,304,817.32.
Moreover, after provision for taxes, net profit totaled a quite
amazing $30,991,795.20 out of which were paid dividends of $11,747,306.57
from moving 360,399 vehicles, up from 1927"s 192,083. USA
and foreign corporate income taxes reached $4,138,962.81.
WPC knew very well that the firm needed more capacity and especially
desired to take Dodge Brothers extensive works and dealer network
away from the banker consortium - when price and terms had been
negotiated. WPC required that 90 percent of Dodge stockholders
approve the change in order to avoid future lawsuits. WPC
friend Alfred Sloan at General Motors had suggested in 1926 to banker
Clarence Dillon that he contact WPC about the Dodge Brothers business
being up for potential sale. 1928 saw the introduction of
Plymouth and De Soto, plus the purchase for $170,000,000 in Chrysler
stock of the entire Dodge Brothers holdings, domestic and overseas,
effective 30 July 1928. Chrysler Corporation took on the Dodge
Brothers outstanding debt consisting of 6 percent Gold Debentures
amounting to $56,705,000 plus 5 percent Serial Notes of $2,750,000.
Payments on this obligation were made steadily and the company was
debt-free by 1936. Chrysler 72s placed third and fourth at
world-class LeMans, France. Imperial took second place ahead of
72s in third and sixth place in the 24-hour endurance race at
Spa-Francorchamps, Belgium. Enabling actions during the year
included a large new Central Engineering building, completion of a
thousand cars per day Plymouth factory, an additional facility at
Walkerville, Canada, additions to Highland Park to meet De Soto
needs, major rearrangement of Dodge plants to improve efficiency, and
re-design of Dodge cars. As the year concluded, product
offerings were listed formally as: Passenger Cars--The Plymouth, The
De Soto, The Dodge Six, The Chrysler "65", The Chrysler
"75", The Dodge Senior, The Chrysler Imperial.
Commercial Vehicles included: The Fargo Delivery and Station Wagons,
The Fargo Trucks, The Dodge Light and Heavy Duty Trucks, The Dodge
Buses and Motor Coaches, The Chrysler Marine Engines. Mrs.
Ethel Miller of Turlock, California bought the first Plymouth sold to
the public.
For 1929 a total of 450,543 vehicles were sold for $375,033,455.01.
Dividends paid reached $13,335,764.25. Net Current
Assets at year-end were $71,385,178.08. The ratio of
total current assets to current liabilities was 4.77 to 1 ($90,312,897.79
vs. $18,927,719.71). Funded debt, mainly the assumed
Dodge Brothers" sum, was reduced by interest saving early
payments totaling $10,172,000 to a balance of $49,765,000
reflecting WPC's acute sensitivity to paying interest. The
pivotal year 1929 found the firm working hard on a new four-main,
In-Line Six engine family plus In-line, L-Head Eights and bringing
'down-draft' carburetion to some models. Hydraulic brakes were
now internal-expanding and Lovejoy hydraulic shock absorbers were
standard on Chryslers. Using a mature tree analogy, complete
with fully leafed branches, the company's public face touted Chrysler's
"root" principle of "standardized
quality" thus capitalizing on its truly outstanding
engineering and manufacturing prowess. As a 1930 model, Dodge
Brothers brand added its first Eight to sell alongside the Dodge
Six. De Soto set a new all-time record first year sales of
81,065. Late in the year, De Soto introduced a new model as the
'lowest price eight-cylinder car in the market. WPC is named
TIME magazine's Man of the Year. Economic uncertainty reared
up, as manifested loudly by the catastrophic crash of the stock
market in October. Earlier in 1929, WPC had taken steps
to conserve his personal and family finances - moves that proved
prescient, given the stock market crash reality of minus $50 billion
soon to damage the economy and cause massive unemployment.
Business slowed dramatically during 1930, with the firm selling
269,899 vehicles for $207,789,338 while recording net income
of only $234,154.97 available to common stockholders.
Nevertheless, the Board collectively took a deep breath and dipped
into net worth for dividends totaling $11,065,268.
Chrysler brand's lineup was led in sales volume by the new, less
costly, CJ. Plymouth franchises were extended to all 7,000
dealerships. Bodies could be wired for radios at the
factory. The same rugged individual who designed (and costed
personally) powerful steam locomotives in Pittsburgh - at a profit
consistently - was not about to be thwarted. Let the fray
continue!
Despite continued and worsening economic factors in 1931 the company
increased sales to 272,118 units, generating net profits of $1,468,935.06
on reduced revenue of $183,805,104.77 as buyers shifted
to lower-priced vehicles. Dividends drew partly on the retained
earnings balance to total $4,412,240. Plymouth benefited
by the introduction of Floating Power as it smoothed out the
four-cylinder engine and led to a revolution in scientific
mountings. Research toward an automatic transmission began, led
by Czech emigrant Augustin Syrovy, and taking into account prior work
by Wilhelm von Pittler (1903) and Harold Sinclair (1926). A
plucky PA Plymouth handled by true driving expert Louie Miller rolled
up 6,237 miles in 132 hours. The powerful nine-main bearing
engined Imperial set 12 new official class B speed records. Fairly
stated, the firm's performance was relatively cheerful given that the
whole industry at retail was down 27.3 percent less than in
1930. The industry produced 70.4 percent of its 1930 output
while Chrysler Corporation managed 101.7 percent of 1930. Model
years 1931 to 1933 presented absolutely gorgeous Custom Imperials
powered by the magnificent In-Line, L-Head Eight of 385 CID.
They grace show fields ever since as ultimate designs of classic
elegance.
1932 revenue from sales totaled $136,546,522.38 and despite a
net loss of $11,254,232.10 dividends were paid out
totaling $4,390,243.50. The company had been carrying as
an asset, $25,000,000 for 'good will' since 1925 and now took the
opportunity to reduce that figure to one dollar, while concurrently
reducing net worth (called "surplus" by financial folks in
those days). Thus at year-end 1932 Chrysler Corporation was
stripped for action at a balance sheet value of $138,386,703,
down from $209,741,379 in 1929. Over the years, one
reads periodically that Chrysler suffered disastrous financial woes
during The Great Depression. Happily, those reports were
usually imprecise, if not actually specious, and the firm remained
dynamic while actually growing overall. Its only loss year when
WPC was at the helm was that incredibly difficult 1932. The
whole young auto industry suffered its worst year since 1915.
Overall 1932 production in the USA was only 57.3 percent of 1931's
lackluster total. But Chrysler managed to move 222,512 units, constituting
83.7 percent of its 1931 total, thanks to all out team effort
especially praised by WPC. Industry retail sales were off a
stunning 42.5 percent. In the face of darkness, Chrysler's
market share moved up to 17.4 percent versus 1931's 12 percent.
In February Chrysler took an amazing 30 percent! Plymouth
gained registrations totaling 118.6 percent over 1931. The new
six-cylinder engine factory came on stream and by November was
turning out power for the 1933 models.
Chrysler's 1933 results were quite above and beyond encouraging in
those desperate times for the USA. The company sold 25.8
percent of the market compared to 17.4 percent in 1932. New car
sales in the industry were 136.2 percent of 1932-while the Chrysler
brand surged to 201.5 percent of 1932. The unit total of 451,734
topped 1929-s record total of 450,543. Dodge soared 206.2
percent! Plymouth moved up 123 percent. Chrysler's share of
exports grew to 22,741 cars and trucks for 21.56 percent of all USA
vehicle exports. Revenues reached $238,675,952.
Net profit rebounded to $12,129,119.92, out of which was paid $4,303,567.50
in dividends. In his message to stockholders, WPC noted
that higher prices of product were forced on the company by the
requirements of the National Recovery Administration code system -
subsequently nullified by the US Supreme Court in 1935.
A 1934 total of 598,884 units rolled out, bringing in $362,254,625.84,
just $12.8 million less than the all-time dollar volume peak year for
the company set in 1929. 1934 saw the firm offering the
following major products: Plymouth Six, Plymouth De Luxe, Dodge Six,
Airflow De Soto, Chrysler Six, Airflow Chrysler Eight, Airflow
Chrysler Imperial, Airflow Chrysler Custom Imperial, Dodge Brothers
Commercial Cars, Trucks and Buses, Fargo Motor Coaches, Chrysler
Marine and Industrial Engines. Marketing of Airflows was indeed
marred by a troubled introduction and certain embarrassing
manufacturing lapses as the startup was rushed. Corrections
were rapid and thorough. Airflows had arrived and the world
automotive scene was never to be the same again. They were
simply outstanding performers in every way important at that
time. Use of true overdrive transmissions made for high speed
cruising and award-winning economy should drivers opt for moderate
operation. The crack California Highway Patrol made quick use
of them to apprehend readily those ever present scofflaws! Hailed
as the fastest closed stock car in America, the Airflow earned 72
Official AAA Records not exceeded until 1957. Passenger
space and comfort were revolutionized. True, Airflows entered
the market as higher-priced cars and in a blaze of competitor
ridicule. Sadly, the greatest break-through yet known in the
industry did not receive its deserved praise (although having immediate
influence technically) for a number of years after WPC's passing from
the scene. The facts are indisputable: Airflow ushered in
the truly modern automobile with effects -flowing- to the present
day. Usually 'lost' over the decades since 1934 is that the
Chrysler Airflow that year sold 10,839 units versus Cadillac's
5,819 and Packard's 6,552. Toyota recognized her
merits immediately. Against this panorama, what were the actual
effects on the firm and its financial performance? Not discussed
generally in the popular media then or in automotive magazines to the
present day, the truth is quite positive. The respected
magazine Scientific American proclaimed Airflow's decisive
influence in their August 1977 issue. Dodge quietly engineered
a highly successful four-wheel drive system much valued soon by the
US Army. Factory output, overall, actually soared over the
improved 1933 results. Plymouth starred again, building 351,113
units. Mrs. Miller appeared, and thanks to WPC himself,
bought the 1,000,000th Plymouth.
1935 proved to be a record year for Chrysler Corporation as output
rose to 843,599 units versus 1934's 597,756. Revenue dollars
exceeded by 38 percent the previous peak achieved in pre-Depression
1929, a most welcome $516,830,333.41. Dividends paid
amounted to $8,664,652.25. Assets at year-end reached $193,510,531.47.
Adjustments had to be made to meet production demands including
reopening the Evansville, Indiana plant for exclusive Plymouth
production. Dodge built its cumulative 3,000,000th
vehicle since 1914. A leading tire manufacturer used a 1935
Chrysler as a test vehicle. Driven twenty hours per day in two
shifts excluding only Sundays and holidays between August 1935 and
August 1936 the car covered 242,782 miles. Using a test regimen
that required near full throttle operation frequently, speed averaged
48.4 miles per hour and overall 15.7 miles per USA gallon.
Service and repair costs calculated to .0051 cents per mile.
Research toward the next generation of Chrysler engines began
- leading to the HEMI of 1951. Fred M. Zeder (FMZ)
was named Vice-Chairman of the Board while KTK became President and
General Manager. Following WPC's death in 1940, the Chairman
position was not filled until 1950, although FMZ retained the title
of Vice-Chairman until his death in 1951. KTK was now firmly at
the corporate helm.
1936 sales reached $667,138,391.08 on a record volume of 1,066,229
vehicles plus other equipment, earning after all charges a net $62,110,542.97
($14.25 per common share outstanding). Assets totaled $210,676,184.10
as the year closed. Tight financial discipline materially aided
Chrysler's rise to second place, displacing the Ford Motor
Company. HFI's insistence on retaining mechanical brakes and an
obsolete suspension system plus internal business control chaos
certainly contributed to Ford's decline. Chrysler's product
array was now listed as: Plymouth Business Six, Plymouth De Luxe Six,
Dodge, De Soto Airstream De Luxe, De Soto Airstream Custom, De Soto Airflow
III, Chrysler Six, Chrysler De Luxe Eight, Chrysler Airflow Eight,
Chrysler Airflow Imperial, Chrysler Airflow Custom Imperial, Dodge
Brothers Commercial Cars and Trucks, Chrysler Marine and Industrial
Engines, Airtemp Air Conditioning Equipment. What a year
1936 was! By year-end, all debt had been paid in full -
Chrysler owed only Current Liabilities! De Soto made a
significant mark in the fleet taxi business garnering useful
publicity from appearing in a number of Hollywood films. All of
that plus adding a new De Soto factory, construction of a new press
plant, reopening the firm's Dayton, Ohio operation (for making
Airtemp products) and establishing a service parts facility in
Marysville, Michigan.
1937 revenues reached $769,807,839.11 derived from selling
still another all-time company record 1,158,518 passenger cars and
commercial vehicles plus other products and service parts.
About one vehicle in four sold in the USA was Chrysler-built.
Net profit after all charges and provision for taxes was $50,729,211.40
of which a record $43,520,620.00 was paid out as stock
dividends. The Annual Report is silent as to reasons for this
whopping increase in dividends. Quite possibly, the Board was
positioning the firm for the coming union move. General Motors
was already engaged heavily in organized labor actions that reduced
GM production and concurrently enabled Chrysler and Ford to benefit
for a time. The firm spent, all out of current year operations
as usual, $21,915,332.00 for improvements at all plants, a new
facility in always important Canada for six-cylinder engine machining
and assembly, plus site preparation for a new truck plant in
Detroit. Year-end assets were $188,803,076.93.
Chrysler people under direction of the famed Raymond Dietrich designed
the lineup. Across the board safety improvements included
recessed instruments and improved padding for front seat backs. Rear
axles were of silent hypoid design, incorporated across the lineup
including Plymouth, thus extending that brand's technical leadership
over Ford and Chevrolet. Chrysler Corporation signed a labor
agreement on 6 April with the United Auto Workers, led by John L.
Lewis. Business across the economy began to decline in November
and was felt across industry. The final magnificent Chrysler
Airflows moved to customers, having opened sustained creative
energies--eventually for the benefit of all personal mobility
consumers! Mrs. Miller, buyer of the first Plymouth in 1928,
and the 1,000,000th in 1934, appeared again to take number
2,000,000 as WPC closed his direct corporate influence
in positive fashion. What a record!
Chrysler Corporation performance during 1926-1938 has served as a
model for business study. Here was a rare combination of
product acceptance and fiscal integrity that included all
participants except the banking community - since Mr. Chrysler,
beyond the assumed banker-instigated bonds from the former Dodge
Brothers Corporation, made little use of funds on which interest had
to be paid out. Still, the bankers had benefited previously in
major ways from WPC's genius in saving their investments in both
Willys and Maxwell following his "magic" in bringing Buick
manufacturing to efficient fruition. No other brand family
surpassed consistently Chrysler's powerhouse engineering and
manufacturing acumen grounded as it was in well-educated personnel,
technically focused products, intelligent management of cash
flows/inventories and the entire spectrum of a real team
approach. The yield was a tremendous 6,627,492 vehicles over
those active WPC years. Net Profits after income taxes
totaled a brilliant $266,554,111.30 for the years 1926 through 1938
inclusive. Only 1932 saw 'red' ink in a masterly
performance. Moreover, Chrysler Corporation consistently paid its
workers more than General Motors or Ford. Looking at just the
company and its host of suppliers tells only a part of the real
economic story. The thousands of individual dealerships across
the land and in other nations, in turn, sold vehicles and service in a
tremendous multiplier effect. WPC never lost his zest for
mingling among members of the entire workforce and was always
approachable with a ready laugh, booming voice, gifted musical
ability, generous community interests, and detailed knowledge of
every aspect of humane business operations - superbly presented in
Vincent Curcio's Chrysler, The Life and Times of an Automotive
Genius (Oxford University Press, 2000).
Total sales in 1938 fell sharply to $413,250,511.70 consisting
of 570,852 passenger cars and commercial vehicles plus service parts,
industrial and marine engines. Company export shipments were up
to 59,407 units. At year-end, the Balance Sheet was healthy at
$140,550,279.08 in Net Worth against Assets of $212,046,854.83.
Dividends paid totaled $8,702,264. Chrysler introduced both
Superfinish (all models) and Fluid Drive (standard on Crown
Imperials, optional on other Eights) into the 1939 lineup.
Chrysler's share of the reduced market held at about 25
percent. The New York Special appeared on the Imperial chassis
and impressed via its lovely interior and serving as 'New Yorker'
impetus for decades to come.
As 1939's lineup was announced in the Fall, models/products were now
named Plymouth Business Six, Plymouth De Luxe Six, Dodge, De Soto,
Chrysler Royal, Chrysler Imperial, Plymouth Commercial Cars, Dodge
Brothers Commercial Cars and Trucks, Chrysler Marine and Industrial
Engines, plus Airtemp Air Conditioning Equipment. Calendar 1939
would see the appearance of several names that are popular among
collectors to this day - including Royal Windsor, Windsor, Traveler,
Imperial New Yorker, Imperial Saratoga, New Yorker, Saratoga, and
Plymouth Roadking.
Sans WPC, Chrysler rolled on as war clouds gathered in both Europe
and Asia. The Gold Seal engines became Spitfires, decorative
plastics came on and in the fall of 1939 there appeared the quite
different and attractive 1940s design theme. Interior colors
and more plastic brightened both 1941 and 1942 lines, especially in
De Soto and Chrysler models. Sales materials for both
years stressed their links to the Airflow with evident pride.
The combination of the fluid coupling plus overdrive in 1939-1841
Eights gave them unsurpassed cruising capabilities. Then
Pearl Harbor. The firm played a tremendous role in support
of World War II, including 22,235 tanks (variously mounting beyond 75
and 76 mm guns a plethora of 105 and 155 mm howitzers, 155 mm and
eight-inch long guns, bull-dozer blades, flamethrowers, mine
destructors, Culin Cutters, and more), 18,413 18-cylinder (HEMI) B-29
engines, 2,098 SCR-584 mobile radar systems for directing 90 mm
anti-aircraft guns, 5,500 gyroscope ship systems, 3.25 billion rounds
of .30 and .45 caliber ammunition, 60,000 40mm gun systems, 60,000
spare 40mm barrels, 62,000 field cooking ranges, container plating
vital to the nuclear bomb 'Manhattan' program, durable 30-cylinder
tank engines (from applying some 50,000 250.6 CID engines hardened to
truck specifications), 15,000 Burma Road trucks, over 438,000 other
trucks in varying configurations, 34,000 ,sirens, and thousands of
industrial and marine engines. The In-Line 323.5 CID five-main
bearing Eight powered 7,800 single and dual engined Sea Mule tractors
and tugs.
Second place was maintained after the 1945 victory via revised
versions of the 1940 body shape. The 1946-1948 technicals were
proven and long-lived. Plymouth, Dodge and De Soto earned a
sterling reputation in mail delivery, sales route duty and taxi
service. Much delayed styling change appeared in 1949.
The lineup was well made though with boxy shapes that stressed
functionality over sleekness. Sales held up well at first
although an extended strike in 1950 denied thousands of customer
deliveries. KTK moved up to Chairman in August 1950 and Lester Lum
"Tex" Colbert became President. Introduction of the
fabulous HEMI V-8s drew rave reviews though the firm still used a
clutch pedal. Net earnings remained positive during 1946
through 1952 but heavy federal taxes roughly halved the latter two
years. Ford introduced well-styled new bodies for 1952 and regained
second place ahead of Chrysler. Now it was the Korean War
having negative effects. 1953 styles came out conservative though the
hot Dodge HEMI set 196 official stock car records. Still the
buying public was anxious for glamour and in 1954 the piper was paid
as sales sank to 13 percent of the industry. Net earnings fell
75.2 percent below 1953. Change was needed and triggered.
KTK had hired Virgil Exner in 1949 and Ex had already done beautiful
creations such as the K-310 Chrysler and had them executed in
Italy. Now, in the face of stark reality he was given full
charge of a new look. Borrowing 250 million dollars from an
insurance company, Chrysler swung back hard with a stunning 1955
lineup. The first of the Letter Series Chryslers appeared,
inspired by the brilliant Bob Rodger amidst plenty of
publicity. They were the real deal and soon were into racing.
Chrysler's new Chelsea Proving Grounds saw exciting 140 mph+ action.
Now gorgeous Imperial was given separate make status although still
sharing certain sheet metal with Chrysler. 1956 lines were
given slight fins, ample power, TorqueFlite pushbutton-controlled
three-speed automatic transmissions and publicity out of NASCAR wins
plus gas turbine research stimulated excitement. All new1957
bodies swept in with fins the center of attention. Suspension
engineering made use of front torsion bars and fundamental
improvements overall that made these cars handle superbly.
Unfortunately, their rushed introduction soon proved embarrassing
stemming out of body sealing problems and lack of corrosion
control. Ironic indeed since 1930s company vehicles had been
leaders in rust prevention. 1958 versions were much improved
but faced a USA business slump of significance. The 1959 lineup
was without HEMIs in favor of a new line of OHV V8s that were
conventional and said to be less costly to build. HEMIs by the
factory would be back. Chrysler reported building 11,873,600
vehicles during 1950-1959 yielding net profits of $500.8
million. Another round of fins would open the busy 1960s.
1960 demonstrated Chrysler Engineering's prowess in the form of unit
bodies across the board except for Imperial. These units were
well executed and given superior rust protection. There was
tribulation at the top as Colbert moved to the Chairmanship and
William Newberg came in as President - lasting 64 days until toppled
by a conflict of interest kept concealed but then revealed.
Lynn A. Townsend came in and George Love took the Chair slot.
De Soto was closed out in November, Fins faded as Elwood Engel took
the styling helm with emphasis on big, bold and no apologies.
The firm enjoyed very good years overall but double trouble lay just
ahead. A movement toward safety took hold that included mandated
measures not always to advantage. The involvement of the US
Congress meant heavy political influence frequently overcoming sound
engineering. Pressure mounted to clean engine exhaust.
Fossil fuel began to be a subject of concern and compact cars played
a growing role with Valiants and the soon to be famous Slant Six
taking the engineering lead. The decade 1960-1969 rolled out
17,740,100 vehicles, garnering net earnings of $1.487 billion in the
process.
John Riccardo took office as President on 9 January 1970 subsequently
becoming Chairman on 1 October 1975 as Townsend retired. Eugene
A. Cafiero became President. The 1970s had opened with Chrysler
volume booming -until the OPEC boycott of October 1973 to March 1974
signaled a new game - affecting the industry by oil supply
manipulation to the present day. Quickly the 'muscle car' mania
faded as compression ratios were reduced. Plymouth and Dodge
came to dominate the very public police vehicle market on demonstrated
merit. Downsizing came on strongly and by decade's end everyone
had reduced dimensions and weight. By 1975 Chrysler had fallen
to 14 percent with Ford rising to 28 and GM leading with 53
percent. A pleasant public relations interlude centered on a
new 115-inch wheelbase Chrysler called Cordoba as coaxed onto the
scene by handsome actor Ricardo Montalban and selling a startling
150,000 in year one. Chrysler Engineering again demonstrated
its ability by creating front-wheel drive compacts sold as Dodge Omni
and Plymouth Horizon and managing to do so without fanfare in a
thoroughly professional fashion - shades of WPC himself. The
spring of 1979 brought another fuel crisis multiplied by a concurrent
economic crunch. Chrysler dropped 15 percent to less than 10
percent of the industry. A savior was needed. Lee
Iacocca, fired by Ford in 1978, came in as President on 2 November
1978 and with alacrity labored to bring Chrysler back from the
brink. Over the next three years 33 of 35 vice-presidents were
replaced as Mr. Iaccoca acted. Those troubled years 1970-1979
saw volume reach 21,467,300 vehicles sold and a net loss of $520.6
million. Indeed, the final two years concentrated an abyssal
crisis at a combined loss of $1.302 billion.
Chrysler's 1980s rebound had many helping hands including pragmatic
Tip O'Neill when both Presidents Carter and Reagan were not
vigorously engaged. Dodge Aries and Plymouth Reliant 'K-car'
front-wheel drive (FWD) sedans star as savior vehicles as Chrysler engineering
solves long-standing FWD challenges. The 50,000-mile warranty
of 1963 is revived. Despite all, the firm roared back with
vehicles numbering 18,784,000 and net earnings of $5.047 billion. Not
a dime of taxpayer money was needed and the US Treasury netted
$344,000,000 via warrants imposed by Congress. Only
Chrysler met the federal CAF - requirement of 27.5 mpg.
Convertibles returned. Collaboration with Maserati yielded
briefly a sporty TC dual-top coupe and inspired the first enthusiast
club founded by a lady, energetic Karleen Tarola. American
Motors is taken over along with the world-famous Jeep line.
Minivans are the real success story of the era. Dodge Diplomat
and Plymouth Gran Fury conclude their police car dominance.
As the 1990s opened, Chrysler had brought pension obligations to
fully paid current status as money flowed as never before via product
popularity as perceived by customers. A 29-day strike was
settled and a rare automatic transmission difficulty solved by
aggressive action. Mr. Iaccoca retired in 1992 and GM veteran
Bob Eaton was brought in to head the firm. Popular Bob Lutz
continued to contribute. Big returns; SUVs proliferate.
Thomas C. Gale led styling as Chrysler issued such machines as
Cirrus, Viper, Avenger, Sebring, Stratus, Spirit, Jeep Grand
Cherokee, Concorde, LHS, Intrepid, Neon, Lxi, Breeze, Voyager, PT
Cruiser and Durango. Chrysler moves to market an upscale
minivan branded Town & Country. WPC's creation never shown
more brightly than during the years 1990 through 1997 inclusive with
production totaling 19,782,100 vehicles and net earnings a whopping
record $14.8 billion. Total revenues saw the
years 1996 and 1997 reach a tremendous $61.397 billion and $61.147
billion respectively. Concurrently, industry leaders knew a
crisis impended in the form of foreign firms growing both here and in
their home nations without the labor, job-bank, work rules, and
health care cost burden carried by the few remaining American firms.
Chrysler's late successes made it ripe for a takeover. Thinly
disguised (the reality was in the fine print that might have been
read--to be sure) as a merger, top leadership was enriched by a very
lucrative payoff and soon left a scene that had for decades ached for
reform and a return to reality. Chrysler Corporation--a
publicly held USA firm since 1925--came to a close during 1998. A
major American icon departed our shores without a whimper from the
incumbent national administration, preoccupied by sex scandal and
impeachment, in a transaction the story of which is yet to be told
fully. Record production totals for the decade's final two
years were reported by then DaimlerChrysler - for 1998, 3,093,716;
during 1999, 3,229,270. The Chrysler Group of the new firm was
credited with adjusted operating profits of Euro 4.255 billion (1998)
and $5.266 billion (1999). Given Chrysler's earned, hard won
position by 1997/8 and its demonstrated momentum the events that
followed were unfortunate to say the least. During May 2007
DaimlerChrysler sold 80.1 percent of their Chrysler Group to Cerberus
Capital Management, L.P., changing their name to Daimler AG.
300C name returns; Chrysler's minivans continue their 25-year
leadership and for 2009 can be equipped with features as varied as
powered sliding doors on both flanks, tire pressure monitoring
system, dual-screen entertainment systems, interior scanning mirror,
115-volt outlet, self-contained fold into floor seats, three
different engine power levels, progressive pressure air bags, and
much more. Retired Chrysler Master Technician Robert Lelakowski
reports completing a cross-country vacation in a 2008 version,
operating in air-conditioned comfort over more than 6,500 miles at
Interstate speeds while averaging 29 mpg in open country and nearly
26 overall. Surely vehicle success honoring the combined
efforts of many. WPC Club members in all 50 USA states and more
than 20 countries are joined together in spirited appreciation of
Chrysler's contributions.
Dr. David George Briant, December 25, 2008
CHRYSLER
CORPORATIONS PULSATING YEARS: 1926-1938
By Dr. David George Briant
To the Stockholders of the Chrysler Corporation: The past year has
been one of notable progress and achievement for your business.
With an increased volume amounting to 167% of that of the previous
calendar year, 1924, the net profits for the calendar year 1925
aggregate $17,126,135.85 after making provision for Federal Taxes
estimated at $2,471,000. This is nearly four times the net
profit earned during the preceding year and reflects the improved
position won by Chrysler cars in the automobile trade.
Walter P. Chrysler, March 9, 1926, from the first Annual Report
message by WPC following incorporation in 1925.
To the Stockholders of Chrysler Corporation: Chrysler Corporation
sales, for the year ended December 31, 1936, were
$667,138,391.08. It sold 1,066,229 vehicles and earned
$62,110,542.97 after all charges. These earnings amount to
$14.25 per share of common stock outstanding . . .The balance of
$10,000,000 bank loans outstanding at the beginning of the year was
paid. The Corporation now has no debts outstanding other than
current liabilities. During the year, the Corporation increased
its wage rates and continued to pay wage rates higher than the
average in the automobile industry, which, itself, is one of the
highest wage-rate industries in the country . . .
Walter P. Chrysler, February 10, 1937, from the final Annual
Report message signed solely by WPC.
Chrysler: A Soon To Be Mighty
Industrial Force Takes Hold
Certainly, one of the most compelling industrial sagas of the 20th
century was the rise of the Chrysler Corporation. Public
acceptance had to be obtained for survival to be sure, given the more
than 2,000 firms that had tried and failedand entry into and
subsequent success in an established oligopoly meant leadership of the
first order. While the adage preparation plus opportunity
equals luck is too simplistic, indeed Walter Percy Chrysler (WPC) had
the right stuff at precisely the right time in history. There
was boldness in engineering, care in manufacturing, skill in
marketing, yes. But more, far more . . .
Built
On Innovative Engineering
Yet Prudently Fiscally Focused
Examination of the record reveals clearly that conservative financial
controls kept the corporate ship mid-channel even in stormy
weather. Board of Directors members as 1926 opened were: WPC,
Chairman, J. S. Bache, J. C. Brady, Harry Bronner, Hugh Chalmers,
Delos W. Cooke, Allen F. Edwards, B. E. Hutchison, W. F. Kenny, D. R.
McLain, Giles W. Mead, W. Ledyard Mitchell, Mercer P. Moseley, Henry
Sanderson, and E. R. Tinker. Innovations and technical firsts
came along steadily throughout the worst business depression in all
history. Only the coming of World War II finally expunged its
effects. Despite the times, Chryslers reputation soared.
In fact, the competition mounted more that one defamation campaign to
offset the firms potency of those days. Indeed, the federal
government was watchingand when the war tocsin sounded Chrysler was
tapped to take on important projects, including tanks, work that was
key to obtaining the atom bomb before Germany, and on into motivating
missile programs to meet Cold War needs. Volume and
dollar figures used throughout are Calendar Year totals as
published in official Annual Reports issued by Chrysler Corporation.
Walter
Percy Chrysler: Automotive Genius & Undisputed Corporate Leader
WPC served as Chairman of the Board of Directors until his death in
1940 at age 65. He had appointed Kaufman Thuma Keller to the
presidency in 1935, turning over daily operations at that
point. WPC remained a strong influential force until his stroke
in 1938. WPC NEWS has presented previously the background and
startup of the firm (WPC NEWS, October 2000, August 2005).
Herein, is taken up emphasis on corporate performance during the
years 1926 to 1938, encompassing 1929s peak and the descent into the
worlds Great Depression. WPC rolled up his sleeves and went on
the offensive to ensure that his company would not only survive, but
also prosper. Financial management was deliberately
conservative while engineering inventiveness continued to be
encouraged via uncut budgets throughout the period. In 1924,
under the Maxwell name, the firm achieved seventh place in sales
dollar terms (from moving 82,289--a mix of Chrysler and Maxwell
vehicles) and again, now newly incorporated as the Chrysler
Corporation, seventh place in 1925 (106,857). At December 31,
1925, the new firm had current assets of $28,021,131.27 versus
1924s $11,755,227.11. Total assets stood at $85,602,497.43
(including good will at $25,000,000). Net profits were an
astonishing $17,126,135.85. Lets go to pulsating action
during the years 1926 through 1938--years that brought happenings few
fiction writers could have conceived, much less put to
print! Progress continued at an amazing rate as
public acceptance grew.
1926: Offerings Broadened, Performance Emphasized, Fifth Place Earned
Net Earnings: $15,448,586.84
At the close of 1926, the firm occupied fifth place (fourth place
according to the National Automobile Chamber of Commerce) based on
selling 170,392 vehicles. As Fisher bodies became unavailable,
Chrysler bought Kercheval and worked with Briggs, Hayes, and soon
Budd. Gross profit from the sale of vehicles and parts for the
year totaled $29,074,112.92. Exports were 10.29 percent
of business done. Net profit totaled $15,448,586.84.
Dividends paid amounted to $9,846,828. Facilities were
provided for off shore assembly in Germany and Australia. By introducing
three new models of Chrysler brand vehicles for 1926 the firm
announced extended market coverage across the entire passenger car
field of the time. The Chrysler 70 had made her magnificent
entrance for 1924 and now was named G-70 and joined by the Chrysler
58 and Imperial E-80. These numerical designations corresponded
to the respective top speed abilities of each linerecognizing, of
course, that varying bodies, loads, road conditions, vehicle tune,
and driver skills affected results. They all were performers in
their day.
1927:
Chrysler Takes Third Place
Net Earnings: $19,484,880.11
Volume moved to 192,083 for third place in the industry via
Series I-50, H-60, G-70, aka Finer 70, and Imperial E-80
offerings. Net profit reached $19,484,880.11 with
dividends paid totaling $9,852,352.75.. Exports were
important, with 14.56 percent compared to 10.29 (1926), 8.28 (1925),
and 5.42 (1924). A strong balance sheet showed that current
assets exceeded current liabilities by a ratio of 4.2 to 1.
Carl Breer began serious wind-tunnel research leading to the
breakthrough Airflow engineering. In-Line Eight
engine development was begun.
Plymouth & DeSoto Planning Underway. Late in 1927, Chrysler
fielded the 52, 62, 72, and Imperial 80L (now with a more powerful
309.3 CID Six) as 1928 models. Plans were afoot to establish
Plymouth (out of the 52) and create DeSoto.
Marine Engine Offerings Immediately Successful. WPC led the entry of
the firm into the marine engine field, linked to his interest in
boating. In short order, the word spread that his Chrysler
Imperial Marine Engines were sturdy and efficient, quite beyond any
competition of the time. Selected Chrysler employees were
trained to support the new product lineused by Chris Craft initially,
followed shortly by Gar Wood, Hacker, and Sea Lyon.
1928: WPC Buys Dodge Brothers
Introduces DeSoto & Plymouth
Net Earnings: $30,991,795.20
Sales of automobiles and parts brought in $315,304,817.32.
Moreover, after provision for taxes, net profit totaled a quite
amazing $30,991,795.20 out of which were paid dividends of $11,747,306.57,
from moving 360,399 vehicles, up from 1927s 192,083. USA and
foreign corporate income taxes reached $4,138,962.81.
More Factory Capacity Needed. WPC knew very well that the firm
needed more capacity and especially desired to take Dodge Brothers
extensive works and dealer network away from the banker
consortiumwhen price and terms had been negotiated. WPC
required that 90 percent of Dodge stockholders approve the change in
order to avoid future lawsuits. WPC friend Alfred Sloan at General
Motors had suggested in 1926 to banker Clarence Dillon that he
contact WPC about the Dodge Brothers business being up for potential
sale.
Cashless Purchase Of Dodge Successful. 1928 saw the introduction of
Plymouth and DeSoto, plus the purchase for $170,000,000 in Chrysler
stock of the entire Dodge Brothers holdings, domestic and overseas,
effective 30 July 1928. Some sources indicate that the Dodge
Brothers acquisition was a merger rather than the sale that it, in
fact, waswith new management taking over immediately. Chrysler
Corporation took on the Dodge Brothers outstanding debt consisting of
6 percent Gold Debentures amounting to $56,705,000 plus 5 percent
Serial Notes of $2,750,000. Payments on this obligation
were made steadily and the company was debt-free by 1936.
Chrysler 72s & Imperials Perform Impressively. Chrysler 72s
placed third and fourth at world-class LeMans, France. Imperial
took second place ahead of 72s in third and sixth place in the
24-hour endurance race at Spa-Francorchamps, Belgium.
On The Move For Certain! Enabling actions during the year included a
large new Central Engineering building, completion of a thousand cars
per day Plymouth factory, an additional facility at Walkerville,
Canada, additions to Highland Park to meet De Soto needs, major
rearrangement of Dodge plants to improve efficiency, and re-design of
Dodge cars. Illustrative of the firms tight management
practices throughout these years was the writing off to current
operations of all new model expense incurred. Of course, the
dollar went a lot further in those days.
Now A Big Three Operator! As the year concluded, product
offerings were listed formally as: Passenger Cars--The Plymouth, The
DeSoto, The Dodge Six, The Chrysler 65, The Chrysler 75, The Dodge
Senior, The Chrysler Imperial. Commercial Vehicles included:
The Fargo Delivery and Station Wagons, The Fargo Trucks, The Dodge
Light and Heavy Duty Trucks, The Dodge Buses and Motor Coaches, The
Chrysler Marine Engines. Mrs. Ethel Miller of Turlock,
California bought the first Plymouth sold to the public.
1929:
Peak Year Volume Thus Far
Standardized Quality Theme Appears
Net Earnings: $21,902,168.25
A total of 450,543 vehicles were sold for $375,033,455.01.
Dividends paid reached $13,335,764.25. Net Current
Assets at year-end were $71,385,178.08. The ratio of
total current assets to current liabilities was 4.77 to 1 ($90,312,897.79
vs. $18,927,719.71). Funded debt, mainly the assumed
Dodge Brothers sum, was reduced by interest saving early payments
totaling $10,172,000 to a balance of $49,765,000 reflecting
WPCs acute sensitivity to paying interest. The pivotal year
1929 found the firm working hard on a new four-main, In-Line Six
engine family plus In-line, L-Head Eights and bringing down-draft
carburetion to some models. Hydraulic brakes were now
internal-expanding and Lovejoy hydraulic shock absorbers were
standard on Chryslers.
Standardized Quality Touted. Using a mature tree analogy,
complete with fully leafed branches, the companys public face touted
Chryslers root principle of standardized quality thus capitalizing on
its truly outstanding engineering and manufacturing prowess. As
a 1930 model, Dodge Brothers brand added its first Eight to sell
alongside the Dodge Six. DeSoto set a new all-time record first
year sales of 81,065. Late in the year, DeSoto introduced a new
model as the lowest price eight-cylinder car in the market. WPC
named TIME magazines Man of the Year.
WPC Anticipated Market Troubles. Economic uncertainty reared up, as
manifested loudly by the catastrophic crash of the stock market in
October. Earlier in 1929, WPC had taken steps to conserve
his personal and family financesmoves that proved prescient, given
the stock market crash reality of minus $50 billion soon to damage
the economy and cause massive unemployment.
1930: Swinging To The Offensive
Net Earnings: $234,154.97
Business slowed dramatically during 1930, with the firm selling
269,899 vehicles for $207,789,338 while recording net income
of only $234,154.97 available to common stockholders.
Nevertheless, the Board collectively took a deep breath and dipped
into net worth for dividends totaling $11,065,268.
Chrysler brands lineup was led in sales volume by the new, less
costly, CJ. Plymouth franchises were extended to all 7,000
dealerships. Bodies could be wired for radios at the
factory. By the close of 1930 world conditions had darkened and
real hardships emerged. Media doubters, always lurking, began
to have a field day of gloom.
WPC Swims Strongly Forward. The genius Walter Percy Chrysler
was not about to bail out of a Manhattan office window for a quick
end as hundreds did. Rather, he considered carefully, then swung
to the offensive. The same rugged individual who designed (and
costed personally) powerful steam locomotives in Pittsburghat a
profit consistentlywas not about to be thwarted. Concurrently, the
non-corporate 1,046-foot Chrysler Building was completed in
Aprildeliberately towering higher than the Eiffel in Paris and
briefly the tallest structure in the history of the world. Let
the fray continue!
1931:
Corporate Sales Edge Higher
Classic Imperials Astound
Net Earnings: $1,468,935.06
Despite continued and worsening economic factors in 1931 the company
increased sales to 272,118 units, generating net profits of $1,468,935.06
on reduced revenue of $183,805,104.77 as buyers shifted
to lower-priced vehicles. Dividends drew partly on the retained
earnings balance to total $4,412,240. Plymouth benefited
by the introduction of Floating Power as it smoothed out the
four-cylinder engine and led to a revolution in scientific
mountings. Research toward an automatic transmission began, led
by Czech emigrant Augustin Syrovy, and taking into account prior work
by Wilhelm von Pittler (1903) and Harold Sinclair (1926).
Plymouth Four Rips Off 6,237 Mile Run In 132 Hours. A plucky PA
Plymouth handled by true driving expert Louie Miller rolled up 6,237
miles in 132 hours. The powerful Imperial set 12 new official
class B speed records. Fairly stated, the firms performance was
relatively cheerful given that the whole industry at retail was down
27.3 percent less than in 1930. The industry produced 70.4
percent of its 1930 output while Chrysler Corporation managed 101.7
percent of 1930.
Those Wonderful Custom Imperials. Model years 1931 to 1933
presented absolutely gorgeous Custom Imperials powered by the
magnificent In-Line, L-Head Eight of 385 CID. They grace show
fields more than seventy years later as ultimate designs of classic
elegance, as demonstrated during the 2005 WPC National Meet by
Sherwood Kahlenbergs 1931 example.
1932: Chrysler Corporations Sole Red Year During WPCs Leadership
Net Loss: $11,254,232.10
Revenue
from sales totaled $136,546,522.38 and despite a net loss of $11,254,232.10
dividends were paid out totaling $4,390, 243.50. The
company had been carrying as an asset, $25,000,000 for good will since
1925 and now took the opportunity to reduce that figure to one
dollar, while concurrently reducing net worth (called surplus by
financial folks in those days). Thus at year-end 1932 Chrysler
Corporation was stripped for action at a balance sheet value of $138,386,703,
down from $209,741,379 in 1929. Over the years, one
reads periodically that Chrysler suffered disastrous financial woes
during The Great Depression. Happily, those reports were
usually far wrong, if not actually specious, and the firm remained
dynamic while actually growing overall. Its only loss year when
WPC was at the helm was that incredible 1932. Auto Industry Has
Worst Year Since 1915. The whole young auto industry suffered
its worst year since 1915. Overall production in the USA was
only 57.3 percent of 1931s lackluster total. But Chrysler managed to
move 222,512 units, constituting 83.7 percent of its 1931 total,
thanks to all out team effort especially praised by WPC.
Industry retail sales were off a stunning 42.5 percent.
Chrysler Corporation Share Moves Up From 12 To 17.4%. In the
face of darkness, Chryslers market share moved up to 17.4 percent
versus 1931s 12 percent. In February Chrysler took an amazing
30 percent! Plymouth gained registrations totaling 118.6 percent
over 1931. The new six-cylinder engine factory came on stream and by
November was turning out power for the 1933 models.
1933:
Chrysler Corporation Takes
25.8 Percent Market Share
Net Earnings: $12,129,119.92
Chryslers 1933 results were quite above and beyond encouraging in
those desperate times for the USA. The company sold 25.8
percent of the market compared to 17.4 percent in 1932. New car
sales in the industry were 136.2 percent of 1932while Chrysler surged
to 201.5 percent of 1932. The unit total of 451,734 topped
1929s record total of 450,543. Dodge soared 206.2
percent! Plymouth moved up 123 percent. Chryslers share
of exports grew to 22,741 cars and trucks for 21.56 percent of all
USA vehicle exports. Revenues reached $238,675,952.
Net profit rebounded to $12,129,119.92, out of which was paid $4,303,567.50
in dividends. In his message to stockholders, WPC noted
that higher prices of product were forced on the company by the
requirements of the National Recovery Administration code
systemsubsequently nullified by the US Supreme Court in 1935.
1934:
Airflows Giant Leap
Revolutionary Overwhelming Change
Net Earnings: $9,534,836.68
A total of 598,884 units rolled out, bringing in $362,254,625.84,
just $12.8 million less than the all-time dollar volume peak year for
the company set in 1929. 1934 saw the firm offering the
following major products: Plymouth Six, Plymouth De Luxe, Dodge Six,
Airflow De Soto, Chrysler Six, Airflow Chrysler Eight, Airflow
Chrysler Imperial, Airflow Chrysler Custom Imperial, Dodge Brothers
Commercial Cars, Trucks and Buses, Fargo Motor Coaches, Chrysler
Marine and Industrial Engines.
Airflow Portends Automotive Paradigm Shift. Marketing of
Airflows was indeed marred by a troubled introduction and certain
embarrassing manufacturing lapses as the startup was rushed.
Corrections were rapid and thorough. Airflows had arrived and
the world automotive scene was never to be the same again. They
were simply outstanding performers in every way important at that
time. Use of true overdrive transmissions made for high speed
cruising and award-winning economy should drivers opt for moderate
operation. The crack California Highway Patrol made quick use
of them to apprehend readily those ever present scofflaws! Hailed
as the fastest closed stock car in America, the Airflow earned 72
Official AAA Records. Passenger space and comfort were
revolutionized. True, Airflows entered the market as
higher-priced cars and in a blaze of competitor ridiculeemblematic of
harshness common in capitalistic, free speech societies. Sadly,
the greatest break-through yet known in the industry did not receive
its deserved praise (although having immediate influence technically)
for a number of years after WPCs passing from the scene. The
facts are indisputable: Airflow ushered in the truly modern
automobile with effects flowing to the present day.
Though Expensive Airflow Outsold Cadillac & Packard. Usually
lost over the decades since 1934 is that the Chrysler Airflow that
year sold 10,839 units versus Cadillacs 5,819 and Packards 6,552.
Toyota recognized her merits immediately. Against this
panorama, what were the actual effects on the firm and its financial
performance? Not discussed generally in the popular media then
or in automotive magazines to the present day, the truth is quite
positive. Factory output, overall, actually soared over the
improved 1933 results. Plymouth starred again, building 351,113
units. Mrs. Miller appeared, and thanks to WPC himself,
bought the 1,000,000th Plymouth.
1935: Chrysler Corporation At Record Level
Net Earnings Surge To $34,975,818.69
1935 proved to be a record year for Chrysler Corporation as output
rose to 843,599 units versus 1934s 597,756. Revenue dollars
exceeded by 38 percent the previous peak achieved in pre-Depression
1929, a most welcome $516,830,333.41. Dividends paid
amounted to $8,664,652.25. Assets at year-end reached $193,510,531.47.
Adjustments had to be made to meet production demands including
reopening the Evansville, Indiana plant for exclusive Plymouth
production. Dodge built its cumulative 3,000,000th
vehicle since 1914. A 1935 Chrysler was used as a test vehicle
by a leading tire manufacturer. Driven twenty hours per day in
two shifts excluding only Sundays and holidays between August 1935
and August 1936 the car covered 242,782 miles. Using a test
regimen that required near full throttle operation frequently, speed
averaged 48.4 miles per hour, averaging overall 15.7 miles per USA
gallon. Service and repair costs calculated to .0051 cents per
mile. Research toward the next generation of Chrysler engines
beganleading to the HEMI of 1951. Fred M. Zeder (FMZ) was named
Vice-Chairman of the Board while KTK became President and General
Manager. Following WPCs death in 1940, the Chairman position
was not filled until 1950, although FMZ retained the title of
Vice-Chairman until his death in 1951. KTK was now firmly at
the corporate helm.
1936: Chrysler Pays Three Bonuses Totaling $8,000,000 To Hourly Employees
Net Earnings A Record $62,110,542.97
Sales reached $667,138,391.08 on a record volume of 1,066,229
vehicles plus other equipment, earning after all charges a net $62,110,542.97
($14.25 per common share outstanding). Assets totaled $210,676,184.10
as the year closed. Tight financial discipline materially aided
Chryslers rise to second place, displacing the Ford Motor
Company. HFIs insistence on retaining mechanical brakes and an
obsolete suspension system plus internal business control chaos certainly
contributed to Fords decline. All despite Edsel Fords
brilliance and impact on exterior styling. Chryslers product
array was now listed as: Plymouth Business Six, Plymouth De Luxe Six,
Dodge, DeSoto Airstream De Luxe, DeSoto Airstream Custom, DeSoto
Airflow III, Chrysler Six, Chrysler De Luxe Eight, Chrysler Airflow
Eight, Chrysler Airflow Imperial, Chrysler Airflow Custom Imperial,
Dodge Brothers Commercial Cars and Trucks, Chrysler Marine and
Industrial Engines, Airtemp Air Conditioning Equipment.
What a year 1936 was!
Debt-Free: Dodge Bonds Concluded. By year-end, all debt had
been paid in full -Chrysler owed only Current Liabilities!
Imagine for a moment that the USA federal authorities were to
practice such discipline! DeSoto made a significant mark in the
fleet taxi business garnering useful publicity from appearing in a
number of Hollywood films. All of that plus adding a new DeSoto
factory, construction of a new press plant, reopening the firms
Dayton, Ohio operation (for making Airtemp products) and establishing
a service parts facility in Marysville, Michigan. Professional
boxing was of widespread interest at the time and rising Nazi Germany
made much of former World Champion Max Schmelings knock out of young
Joe Louis, former worker in Detroits auto plants!
1937:
A Record 1,158,518 Vehicles Made
Net Earnings Total $50,729,211.40
Revenues reached $769,807,839.11 derived from selling still
another all-time company record 1,158,518 passenger cars and
commercial vehicles plus other products and service parts.
About one vehicle in four sold in the USA was Chrysler-built.
Airflow Four Years Tremendously Profitable. Net profit after
all charges and provision for taxes was $50,729,211.40 of
which a record $43,520,620.00 was paid out as stock
dividends. The Annual Report is silent as to reasons for this
whopping increase in dividends. Quite possibly, the Board was
positioning the firm for the coming union move. General Motors
was already engaged heavily in organized labor actions that reduced
GM production and concurrently enabled Chrysler and Ford to benefit
for a time. The firm spent, all out of current year operations
as usual, $21,915,332.00 for improvements at all plants, a new
facility in always important Canada for six-cylinder engine machining
and assembly, plus site preparation for a new truck plant in
Detroit. Year-end assets were $188,803,076.93.
Chrysler people under direction of the famed Raymond Dietrich
designed the lineup. Across the board safety improvements included
recessed instruments and improved padding for front seat backs.
Plymouths Technical Leaders Of Low-Priced Field. Rear axles were of
silent hypoid design, incorporated across the lineup including
Plymouth, thus extending that brands technical leadership over Ford
and Chevrolet. Chrysler Corporation signed a labor agreement on
6 April with the United Auto Workers, led by John L. Lewis.
Business across the economy began to decline in November and was felt
across industry. The final magnificent Chrysler Airflows moved
to customers, having opened sustained creative energies--eventually
for the benefit of all personal mobility consumers! Mrs.
Miller, buyer of the first Plymouth in 1928, and the 1,000,000th
in 1934, appeared again to take the 2,000,000th!
1938:
USA Consumer Confidence Slumps
Net Earnings $18,798,293.65
Total sales in
1938 fell sharply to $413,250,511.70 and included 570,852
passenger cars and commercial vehicles plus service parts, industrial
and marine engines. Company export shipments were up to 59,407
units. At year-end, the Balance Sheet was healthy at
$140,550,279.08 in Net Worth against Assets of $212,046,854.83.
Dividends paid totaled $8,702,264.
Major War Imminent. International conditions were ominous
thanks to aggressive Germany and Japan, while the worlds great
democracies as well as other forms of governments were pitifully
unprepared for defense. The hapless League of Nations failed
utterly (the United States Senate had failed by one vote to confirm
USA membership following World War I).
Technical Advances Continued. Chrysler introduced both Superfinish
(all models) and Fluid Drive (standard on Crown Imperials, optional
on other Eights) into the 1939 lineup. Chryslers share of the
reduced market held at about 25 percent. The New York Special
appeared on the Imperial chassis and impressed via its lovely
interior and serving as New Yorker impetus for decades to come.
Fall Sees Name Changes. As 1939s lineup was announced in the
Fall, models/products were now named Plymouth Business Six, Plymouth
De Luxe Six, Dodge, DeSoto, Chrysler Royal, Chrysler Imperial,
Plymouth Commercial Cars, Dodge Brothers Commercial Cars and Trucks,
Chrysler Marine and Industrial Engines, plus Airtemp Air Conditioning
Equipment. Calendar 1939 would see the appearance of several
names that are popular among collectors to this dayincluding Royal
Windsor, Windsor, Traveler, Imperial New Yorker, Imperial Saratoga,
New Yorker, Saratoga, and Plymouth Roadking. Board members
included WPC, Chairman, F. M. Zeder, Vice-Chairman, J. S. Bache, J.
C. Brady, Carl Breer, Harry Bronner, Waddill Catchings, W. P.
Chrysler, Jr., George W. Davison, J. E. Fields, Byron C. Foy, John A.
Hartford, B. E. Hutchison, K. T. Keller, Nicholas Kelley, W. Ledyard
Mitchell, O. R. Skelton, Matthew S. Sloan, Harold E. Talbott, and
Juan T. Trippe. Champion boxer Joe Louis (1914-1981)
defeated Max Schmeling (1905-2005) in 2 minutes, four seconds of
round one of their return match that drew massive world attention.
Years later, Max helped pay the cost of Joes funeral.
Chrysler Corporations Pulsating Saga
Kept Firmly On Course
Chrysler Corporation performance during 1926-1938 serves as a model
for business study. Here was a rare combination of product
acceptance and fiscal integrity that included all participants except
the banking communitysince Mr. Chrysler, beyond the assumed
banker-instigated bonds from the former Dodge Brothers Corporation,
made little use of funds on which interest had to be paid out.
Still, the bankers had benefited previously in major ways from WPCs
genius in saving their investments in both Willys and Maxwell
following his magic in bringing Buick manufacturing to efficient
fruition (in 1926, Buick made 266,753 cars, exceeded only by Ford and
Chevrolet!). No other brand family surpasses consistently
Chryslers powerhouse engineering and manufacturing acumen grounded as
it was in well-educated personnel, technically focused products,
intelligent management of cash flows/inventories and the entire spectrum
of a real team approach.
From
Fifth To Second Place While Creating 6,627,492 Vehicles To Net $266,554,111.30
The yield was a tremendous 6,627,492 vehicles over 13 pulsating
years. In the Team Effort Pays Off realm, Net Profits after
income taxes totaled a brilliant $266,554,111.30 for the years 1926
through 1938 inclusive. Only 1932 saw red ink in an amazing
surge. Moreover, Chrysler Corporation consistently paid its
workers more than General Motors or Ford. Looking at just the
company and its host of suppliers, of course, tells only a part of
the real economic story. The thousands of individual
dealerships across the land and in other nations, in turn, sold
vehicles and service in a tremendous multiplier effect.
Mr. Chrysler Unspoiled By Success. WPC never lost his zest for
mingling among members of the entire workforce and was always
approachable with a ready laugh, booming voice, gifted musical
ability, healthy sports interests, and detailed knowledge of every
aspect of humane business operations superbly presented in Vincent
Curcio's Chrysler, The Life and Times of an Automotive Genius.
Plymouths Benefited Via Engineering Largess. Plymouth sales were,
of course, the core sustaining the firm during many of these years
and linked to the love for the famous post-war P15s as honored by
Chuck and Lois Jensen at WPC National Meets.
Early Chrysler Corporate
History 1903 - 1928
By
Cliff Lockwood, October 18, 1968
This article was featured in the November, 1983 issue of the WPC
NEWS
1903 -- Jonathan
Maxwell designed the first Maxwell car and, with Benjamin Briscoe,
formed the Maxwell-Briscoe Company. Using an existing Plant at
Tarrytown, N. Y., they started production on June 1904, building 532
Maxwell cars in the first year. In 1907 they built a new plant at
Newcastle, Indiana, which is still part of Chrysler facilities in
that city.
1910 --
Benjamin Briscoe organized the United States Motor Company, as an
amalgamation of several independents, who were encountering
difficulty in securing necessary financial backing. These included:
Maxwell, Stoddard-Dayton, Courier, Columbia, Brush, Sampson Trucks
and Gray Marine, with the Thomas and other lines being added later.
1913 --
United States Motor Company failed, due to conflict between two of
its backers, who also had a financial interest in General Motors. The
Maxwell assets were then purchased by Walter Flanders,
who reorganized the company as the Maxwell Motor Company,
Inc., and continued to build the popular Maxwell cars, sales of which
ranked 5th in N.A.C.C. ratings. The Maxwell facilities included
plants at Newcastle, Dayton and Highland Park, the latter consisting
of a small, two story brick office building on Oakland Avenue and
three factory buildings that had been built in 1909. One of these
buildings still survives as the Engineering Road Test Garage (Ed.
Note: This building was designed by Frank Lloyd Wright) .
1917 --
Maxwell Motor Company leased the Chalmers Motor Company's Jefferson
Avenue Plant, to augment their Highland Park facilities, both of
which were needed by Maxwell to fill World War I government orders.
1920 --
Maxwell Motor Company, Inc., owing some $43,000,000 was on the verge
of bankruptcy and Walter P. Chrysler, who had retired as President of
Buick and vice-president of General Motors, was asked to head-up a
reorganization committee, which arranged for the purchase of the
combined assets of Maxwell and Chalmers -- and formed Maxwell Motor
Corporation, effective May 1921. Mr. Chrysler became Chairman of the
Board.
1921 --
Maxwell Motor Corporation continued to build the Chalmers car and an
improved Maxwell car, advertised as the "Good Maxwell."
1923 --
Walter Chrysler brought Fred Zeder, Owen Skelton and Carl Breer into
the organization, as the nucleus of a new Engineering Department -
and while continuing to build the Good Maxwell at Highland Park,
commenced production of pilot models of the Chrysler Six in the
Jefferson Ave. Plant.
1924 -- The
Chrysler Six was introduced to the public in January 1924 during the
National Auto Show in New York City, where it was very favorably
received, getting off to a good start with production of 32,000 units
in the first year.
The
Chrysler Corporation was organized effective June 6, 1925, replacing
the Maxwell Motor Corporation -- and the Maxwell car was
discontinued. A new four- cylinder car, the Chrysler Four, went into
production in June at the Highland Park Plant, as a companion car to
the Chrysler Six, which was built at the Jefferson Avenue Plant.
1926 --
Chrysler introduced its first big, luxury car - the Imperial
"80" to round out its line, along with the Chrysler
"50", the "60" and the "70"
1928 -- In
June, Chrysler commenced production of the Plymouth car, at Highland
Park, replacing the 4-cylinder Chrysler. In July they also started
production on a new light six to be known as the DeSoto for
distribution though a new DeSoto dealer organization.
In July
1928, Chrysler Corp. also purchased Dodge Brothers, INC., from the
New York banking firm of Dillon, Read & Co., for $170,000,000.00
The bankers had purchased the company from Dodge family a few years
earlier, after the death of the two Dodge brothers. Dodge became a
division of Chrysler Corporation.
In 1928,
Chrysler Corporation also established separate divisions for
distribution of various lines of cars: Plymouth Motor Corporation,
Dodge Brothers Corporation, DeSoto Motor Corporation and the Chrysler
Sales Corporation. The Fargo Motor Corp. was also organized to handle
national fleet business and the following year Chrysler Motors Parts
Corp was formed to merchandise parts for all of the Corporation's
lines. Chrysler Export Corp., had been organized in 1927.
1930 -- The
Plymouth Franchise, which had been handled by Chrysler Division
dealers was also given to Dodge and DeSoto dealers, as well as
Chrysler dealers, thereby providing approximately 10,000 outlets for
Plymouth cars.
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