Chrysler Group LLC (  /ˈkraɪslər/) is an American-based, multinationalautomaker, in global strategic alliance with its majority owner, Italian manufacturer Fiat, since 2009.

 

Chrysler was first organized as the Chrysler Corporation in 1925. Its core brands are: Chrysler, Jeep, Dodge, Ram, SRT, Fiat, and Mopar vehicles and products. The Company is headquartered in Auburn Hills, Michigan, United States.

 

On June 10, 2009, Chrysler LLC emerged from a government backed Chapter 11 reorganization as Chrysler Group LLC, in alliance with the Italian automaker Fiat.[4][5] Initially holding a 20% interest in Chrysler Group, Fiat's stake was increased to 58.5% (fully diluted) following acquisition of the equity interests held by the U.S. Treasury (6% on June 3, 2011) and Canada (1.5% on July 21, 2011) The stake was further increased to 61.8% in July 2012.

 

History

Walter Chrysler

The company was founded by Walter Chrysler (1875–1940) on June 6, 1925, when the Maxwell Motor Company (est. 1904) was re-organized into the Chrysler Corporation.

 

Walter Chrysler arrived at the ailing Maxwell-Chalmers company in the early 1920s. He was hired to overhaul the company's troubled operations (after a similar rescue job at the Willys-Overland car company).[16] In late 1923 production of the Chalmers automobile was ended.

 

In January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler was a 6-cylinder automobile, designed to provide customers with an advanced, well-engineered car, but at a more affordable price than they might expect. (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.[19][20] 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 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.
 

Following the introduction of the Chrysler, the Maxwell was dropped after its 1925 model year run, although in truth the new line of lower-priced 4-cylinder Chryslers which were then introduced for the 1926 model year were basically Maxwells which had been re-engineered and rebranded.[21] It was during this time period of the early 1920s that Walter Chrysler assumed the presidency of Maxwell, with the company then ultimately incorporated under the Chrysler name.

 

Following the introduction of the Chrysler, the Maxwell brand was dropped after the 1925 model year. The new, lower-priced four-cylinder Chryslers introduced for the 1926 year were badge-engineeredMaxwells.[22] 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, a position it would last hold in 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 (created essentially by once again reworking and rebadging Chrysler's four-cylinder model).[23] At the same time, the DeSoto brand was introduced in the medium-price field. Also in 1928, Chrysler bought the Dodge Brothers[24] 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. In 1955, the company decided to spin it off as its own make and division to better compete with its rivals, Lincoln and Cadillac. Imperial would see new body styles introduced every two to three years, all with V8 engines and automatic transmissions, as well as technologies that would filter down to Chrysler corporation's other models. Imperial was folded back into the Chrysler brand in 1973.

 

The Valiant was also introduced for 1960 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 during 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.

 

Chrysler acquired the Jeep brand as part of the purchase of American Motors (AMC) on August 5, 1987, for somewhere between US$1.7 billion and $2 billion, depending on how costs were counted.[26] Chrysler then established the Jeep/Eagle division, along with the Eagle brand that was discontinued a decade later as part of the DaimlerChrysler merger at that time. In 2001, the Plymouth brand was also discontinued. Currently, Dodge is the full line automobile brand, with the Chrysler brand marketing upscale cars. The Jeep brand focuses on SUVs, while the Ram brand offers small commercial vans and a variety of pick-up trucks.

 

On May 24, 2011, Fiat paid back $7.6 billion in U.S. and Canadian government loans.On July 21, Fiat bought the Chrysler shares held by the United States Treasury. With the purchase, Chrysler once again became foreign owned; this time Italian car maker Fiat gained majority ownership and control of Chrysler. The United States government's involvement in the Chrysler bankruptcy cost U.S. taxpayers $1.3 billion.

 

Imported From Detroit

In 2011, Chrysler unveiled their new "Imported From Detroit" campaign with ads featuring Detroit rapper Eminem, one of which aired during the Super Bowl. The campaign highlights the rejuvenation of the entire product lineup, which includes the new, redesigned and repackaged 2011 200 sedan and 200 convertible, the Chrysler 300 sedan and the Chrysler Town & Country minivan.[48][49] As part of the campaign, Chrysler sold a line of clothing items featuring the Monument to Joe Louis, with proceeds being funneled to Detroit-area charities, including the Boys and Girls Clubs of Southeast Michigan, Habitat for Humanity Detroit and the Marshall Mathers Foundation.[50] Following the Eminem ad, there was also an ad for Detroit Lions defensive tackle Ndamukong Suh driving a Chrysler 300 to Portland, Or., to visit his mother, an ad featuring Detroit-born fashion designer John Varvatos cruising through a shadowy Gotham while Kevin Yon's familiar baritone traces the designer's genesis.

 

In March 2011, Chrysler Group LLC filed a lawsuit against Moda Group LLC (owner of Pure Detroit clothing retailer) for copying and selling merchandise with the "Imported from Detroit" slogan.[52] Chrysler claimed it had notified defendant of its pending trademark application February 14, but the defendant argued Chrysler had not secured a trademark for the "Imported From Detroit" phrase. On June 18, 2011, U.S. District Judge Arthur Tarnow ruled that Chrysler's request didn't show that it would suffer irreparable harm or that it had a strong likelihood of winning its case. Therefore Pure Detroit's owner, Detroit retailer Moda Group LLC, can continue selling its "Imported from Detroit" products. Tarnow also noted that Chrysler doesn't have a trademark on "Imported from Detroit" and rejected the automaker's argument that trademark law isn't applicable to the case. In March 2012, Chrysler Group LLC and Pure Detroit agreed to a March 27 mediation to try to settle the lawsuit over the clothing company's use of "Imported from Detroit" slogan.[55] Pure Detroit stated that Chrysler has made false claims about the origins of three vehicles - Chrysler 200, Chrysler 300 and Chrysler Town & Country - none of which are built in Detroit. Pure Detroit also said that Chrysler's Imported From Detroit merchandise is not being made in Detroit.

 

In 2011, Eminem settled a lawsuit against Audi alleging the defendant had ripped off the Chrysler 300 Super Bowl commercial in the Audi A6 Avant ad.

 

Half Time in America

Again in 2012, Chrysler advertised during the Super Bowl. Its two-minute February 5, 2012 Super Bowl XLVI advertisement was titled "Half Time in America". The ad drew criticism from several leading U.S. conservatives, who suggested that its messaging implied that President Obama deserved a second term and, as such, was political payback for Obama's support for the federal bailout of the company.[57] Asked about the criticism in a 60 Minutes interview with Steve Kroft, Sergio Marchionne responded "just to rectify the record I paid back the loans at 19.7% Interest. I don't think I committed to do to a commercial on top of that" and characterized the Republican reaction as "unnecessary and out of place".