CHRYSLER

On June 6, 1925, Walter P. Chrysler officially founded the Chrysler Corporation from the struggling Maxwell Motor Corporation. The first Chrysler car appeared in 1924, and the following year the company acquired the American Motor Body Company, securing its own body supply. In 1928, Chrysler began segmenting its vehicles by price and purpose, launching the Plymouth brand for the budget market and DeSoto for the mid-range. That same year, Chrysler merged with Dodge Brothers, gaining new foundries, a truck business, and an extensive dealer network.

In 1934, Chrysler introduced the revolutionary Airflow models, featuring advanced aerodynamic designs tested in the industry’s first wind tunnel. However, production delays, technical issues, and the unfamiliar appearance led to disappointing sales, and the company's styling remained conservative for the next two decades. In 1935, K.T. Keller became president, while Walter Chrysler continued as chairman until his death in 1940. In 1937, Chrysler became the target of the United Auto Workers' first sit-down strike and was officially unionized.

During World War II, Chrysler halted car production to focus on military manufacturing. After the war, poor design and build quality caused Chrysler to fall behind Ford and General Motors among the “Big Three” automakers. Starting in 1960, Chrysler adopted unibody construction for most of its passenger cars, a significant move in mass automotive production. In the 1960s, Chrysler helped create the American muscle car market with legendary models like the Plymouth Barracuda, Road Runner, and Dodge Charger.

In 1978, the charismatic Lee Iacocca was appointed president to save Chrysler from financial collapse. Economic difficulties and foreign competition in the 1970s pushed the company to the brink of bankruptcy, forcing it to seek $1.5 billion in loan guarantees from the U.S. government, which Congress approved in December 1979. Thanks to these measures, Chrysler slowly began to recover, though it remained the weakest of the Big Three.

In 1987, Chrysler acquired American Motors Company, bringing the iconic Jeep brand into its lineup. In 1998, Daimler-Benz purchased Chrysler, forming DaimlerChrysler AG—a move that shocked the industry. Despite promises of a “merger of equals,” Daimler-Benz quickly took control. As Chrysler's financial situation worsened in the early 2000s, 80% of its shares were sold to Cerebus Capital Management in 2007. After the 2008 financial crisis, the company was forced to reorganize, reduce its model range and dealer network.

Under Sergio Marchionne’s leadership, Chrysler improved quality and clarified its product strategy. After repaying its loans in 2011, the U.S. government sold its shares to Fiat, which completed its acquisition in 2014. This led to the formation of the new alliance—Fiat Chrysler Automobiles (FCA US LLC).