I
Iacocca, Lee
Identification Automobile industry executive
Born October 15, 1924; Allentown, Pennsylvania
A business turnaround specialist, Iacocca brought the
Chr ysler Corporation back from financial ruin through
strategic business planning and creative advertising prac-
tices. Iacocca represented the consummate business execu-
tive, and his name became associated both with corporate
success and with the American automobile industr y.
By 1980, Lee Iacocca, the chief executive officer of
Chrysler Corporation, had already pulled off a ma-
jor business coup. Iacocca had secured a guaranteed
loan of $1.5 billion from the United States to stave
off the near bankruptcy of the world’s third largest
automobile company. During the decade, Iacocca
developed and executed a series of business strate-
gies to return Chrysler from the brink of financial di-
saster. He introduced new products such as the K-
car, a compact front-wheel-drive automobile that
was hailed as both economical and efficient in a time
of painfully high gasoline prices for American con-
sumers.
Iacocca also sought financial relief and coopera-
tion from Chrysler’s major stakeholders. To that
end, he successfully negotiated a $1 billion wage and
benefits givebacks with the leadership of the United
Auto Workers (UAW), a major labor union. He also
restructured Chrysler by downsizing the workforce
considerably, by eliminating managerial positions,
and by closing company operations and factories
that he deemed inefficient. To further buttress Chrys-
ler’s financial position, he sought and received better
business terms and conditions from external stake-
holders, such as financial institutions and corporate
suppliers. He led by example when he reduced his
salary as chairman from $360,000 per year to $1.
In an unprecedented move
by a corporate executive, Iacocca
appeared personally in television
commercials to promote Chrysler
automobile sales. Ever the con-
summate salesman, Iacocca ap-
pealed to the American public in
two ways: first, by asking Ameri-
cans to buy an American car, and
second, by challenging the public
to purchase a Chrysler product
with his famous mantra: “If you
can find a better car, buy it!” His
appearance in television advertis-
ing spots thrust Iacocca into the
public limelight, and he became
a major American personality.
Iacocca received further public
recognition when President Ron-
ald Reagan appointed him to lead
the Statue of Liberty-Ellis Island
Centennial Commission in May,
1982.Chrysler chairman Lee Iacocca stands in front of a Lamborghini Countach, celebrating his
company’s acquisition of Lamborghini in 1987. The deal served to confirm Chrysler’s as-
cendancy in a decade defined by mergers and acquisitions.(AP/Wide World Photos)