them, and in the 1970s continued to produce larger cars when Americans no longer wanted them.
The late 1970s and early 1980s were a crisis for the American domestic industry as a whole, and as the smallest of the Big Three, the atmosphere of crisis was particularly threatening to Chrysler. At times it seemed that the company might collapse, the first elimination of a major carmaker since Studebaker disappeared in the 1950s. But under the colorful leadership of Lee Iacocca, Chrysler moved more aggressively than its larger domestic competitors to meet the "Japanese challenge." Costs were ruthlessly reduced, and innovative products brought into production, the minivan being introduced in 1983. Moreover, in an industry where image is important, Iacocca's high public profile perhaps made Chrysler appear less a hapless dinosaur than General Motors or Ford.
By the 1990s, Chrysler's place in the market is secure; in 1993 it posted its highest-ever earnings, and its product mix continues to be well-received. However, Chrysler's relatively small size (for an automaker) continues to pose a challenge, most recently making it an object of takeover speculation. In the spring of 1995, financier Kirk Kerkorian and former chairman Iacocca were associated in a takeover bid for the company. They failed to secure sufficient outside financing, and the bid fell through. Nevertheless, the fact that it was made indicates Chrysler management's potential vulnerability on the financial level.
Chrysler management has consciously avoided formulating an overarching mission or corporate philosophy. In the words of Chairman Robert J. Eaton's introductory message in the 1994 Annual Report:
This year's annual report, however, is not about
our philosophy or culture. It's not about the past.
And it's not about the 21st century. It's focused on
The deliberate rejection by Chrysler management of a broad conceptual schema implies that corpor...