The history of Chrysler Group LLC is full of events and is known for its ups and downs. Chrysler Group LLC was on the third place among US automotive companies. During the sixties, company is very firmly on her two feets. But ill-conceived management has brought a lot of troubles. It all started many years ago. It started in the early 50s. All companies producing cars with streamline form. But Chrysler produce cars with a rectangular form, very reminding a combination of rectangular boxes. In the early 60s the consumer wanted to get big and comfortable cars. But the company began to produce small cars. (Chrysler’s History, 2016)
Of course, pretty soon demand for small cars has increased. This was due to all known oil crisis. But the company didn’t feel the trends of the times. Just before the crisis started the release of large cars with very low efficiency had begun. As a result, the market was flooded with Japanese cars. The Japanese feel the trend of the times and very quickly began to produce what was needed at the moment for the consumer. Chrysler Group LLC was threatened by financial collapse. To save the situation, the company invited Lee Iacocca. Prior to that, he worked for the Ford Motor Company almost 32 years. In order to find a means to revive the company, he tried to appeal to the US government. Iacocca speeches really helped. He described very detailed, that would be in the case, if all the factories of corporation will be closed. Everyone understood that it is not in the best way affect the entire economy. The result of all these actions was the special act, carried out by Congress and signed by President. Chrysler has received $ 1.5 billion. It was on time. By the time the company's share of sales in the American market was not 21%, as in 1952, but just 9%. (Chrysler’s History, 2016)
The Chrysler Group LLC has flourished until the strike in 1997, which resulted the loss of 450 million dollars. It was the longest strike in the whole history of the company. But after the strike Corporation continued its collaboration with various companies around the world. Contract for the production of vans with the Daimler-Benz company was made quickly enough. In 1998 the companies have merged. (Chrysler’s History, 2016)
However, in 2009 Chrysler became a bankrupt again. I think that a number of reasons appear responsible for this. The main reason is the global economic and financial crisis, as a result of which the entire automotive industry has suffered. Accordingly, car sales declined significantly. Furthermore, a significant cause of bankruptcy, in my opinion, is the big marketing mistake. More precisely after the merger with the Daimler (Mercedes Benz) company made a mistake in the positioning of products. Daimler eliminated the cult brand of Chrysler - Pentastar and remade Chrysler into German way. Of course the American consumer didn’t like it. Because all consumers knew, that Pentastar in the pentagon - a symbol of Chrysler. Consumers are aware that the car without Pentastar - this is not Chrysler. This has led to a significant reduction of sales and Daimler Benz had to sell Chrysler in 2007. Chrysler would be worth to preserve their identity in the eyes of the consumers, therefore it had the impression that, though a corporation called Daimler-Chrysler, but it is more Daimler than Chrysler.
After that, Chrysler decided to return to its classic logo, but it was too late.
Chrysler once again declared himself as bankrupt. The company took this step after it became clear, that an agreement with all creditors on debt restructuring fails. In this regard, and as directed by the US Treasury Chrysler LLC and 24 of its subsidiaries in the United States filed a lawsuit for voluntary bankruptcy under article number 11 of the US Bankruptcy Law in the Court of the Southern District of New York (this article protects the company from creditors, allowing it, at the same time to continue their activities). (J. Roe, Skeel, 2010)
In 2009, Chrysler formed a global strategic alliance with the Fiat, which has the resources, technology and worldwide network of dealers and distributors - everything necessary for successful competition in the global market.
So, I find actions of the company in relation to the structure of its assets very effective. The company implements the strategy of accelerating the cash flow, which allows to save money (optimization of production, logistics). Today, the company prefers to find their own funds, than taking loans, as Ford company does, because it copes with the problems with its own resources, without getting into debt. The experience of the 2008 economic crisis has shown that this policy is quite effective.
References
Chrysler’s History. Retrieved August 30, 2016 from http://www.chrysler.com/en/this-is-chrysler/history/
J. Roe, M., Skeel, D. (2010) "Assessing the Chrysler Bankruptcy". Faculty Scholarship. Paper 685. Retrieved from http://scholarship.law.upenn.edu/faculty_scholarship/685
