Iacocca - An Autobiography

Iacocca –An Autobiography By Lee Iacocca with William Novak By Group 4 Anuj Surana 11/08 Ashmita Chhatwal 19/08 Deepesh Bhatnagar 29/08 Gautam Malhotra 45/08 Chayanika Dutta 89/08 Dileep 129/08

Iacocca: An Autobiography Iacocca: An Autobiography is Lee Iacocca's best selling autobiography, co-authored with William Novak and originally published in 1984. Most of the book is taken up with reminiscences of Iacocca's career in the car industry, first with the Ford Motor Company, then the Chrysler Corporation. The hugely successful autobiography was the best-

Lee Iacocca Lido Anthony "Lee" Iacocca is an American businessman most commonly known for his revival of the Chrysler Corporation in the 1980s,serving as President and CEO from 1978 and additionally as chairman from 1979, until his retirement at the end of 1992. he was a passionate advocate of U.S. business exports during the 1980s. He is the author or co-author of several books, including Iacocca: An Autobiography, and Where have all the Leaders Gone?

Early Years • Lido Anthony Iacocca was born on October 15, 1924 to Nicola and Antonietta, Italian immigrants. • Displayed his passion for hard work and managerial skills at a young age. • Graduated from Lehigh University • Won the Wallace Memorial Fellowship and went to Princeton University

Ford Story • Joined Ford Motor Company in 1946 • After a brief stint on engineering, moved to sales and marketing where his career flourished • His maverick, street-smart, "thinking on your feet" approach induced breakthrough programs like "56 for 56” which won national acclaim • Another legendary project was 1964 Mustang • His use of market research, his willingness to listen and his readiness to take risks introducing new products

In the Upper Echelons • Promoted to head of the company's Ford division in 1964. • was responsible for the Lincoln Continental Mark III, the Ford Fiesta and the revival of the Mercury brand • promoted other ideas which did not reach the marketplace as Ford products • was made President of Ford on December 10, 1970.

Estrangement • By the end of 1975 Lee and Henry Ford II began to have a personality conflict • He was fired from Ford in July of 1978, despite Ford posting a $2 billion profit for the year. After being fired at Ford, Lee was aggressively courted by the Chrysler Corporation, which was on the verge of going out of business In 1979 he joined forces with

The Second Innings- Chrysler Corporation • Nov 2,1978 – Chrysler losses worst ever – Lee Iacocca joins Chrysler

• Total chaos – – – – – – –

No coordination Liquidity crunch Low morale Industrial spying Losing consumer loyalty Poor quality Sales Bank

The Second Innings- Chrysler Corporation (Contd.) • Building the team – Gerald Greenwald (Finance) – Steve Miller (Brought by Gerald) – Hal Sperlich (VP Production planning)

• Overthrow of Shah of Iran – – – –

Soaring oil prices Japanese Come in Down-sizing Selling operations

Second Innings- Chrysler Corporation (Contd.) • Decides to approach Govt. – Failed talks on Loan procurement – Failed talks on Sell out to Volkswagen – Asked Govt. for tax credit – Govt. Loan Guarantee

• Should Chrysler be saved! – Mass outrage – Counter arguments

Second Innings- Chrysler Corporation (Contd.) • Chrysler goes to trial – Majority was opposing – Small support from McKinney – Support started growing – Maintaining consumer confidence

Second Innings- Chrysler Corporation (Contd.) • 1979 – Chrysler at the verge of bankruptcy – Concession of $655m – $1.5bn loan from Loan Guarantee Board

• 1980 – K-cars launched – A poor start

Second Innings- Chrysler Corporation (Contd.) • 1981 – Loss of $478.5 million – Proposed merger between Chrysler and Ford – Nov 1,down to last 1 million dollar – Bankruptcy situation again – Additional $600mn concession

Second Innings- Chrysler Corporation (Contd.) • 1982 – Launched LeBaron convertible

• 1983 – May 15-lost his wife – July 13-paid back the loan – Appearance in TV commercials – Signed 3yr contract with Chrysler

• 1984 – Launched T115 Minivan

Straight Talk Promotion of unpopular causes: Saving lives on roads - Mandatory seat belts - Interlocking System - The Air bags

High cost of labor Three key areas where management gave in to union demand and now getting killed - Unlimited cost of living allowance - “Thirty and out” - Medical Benefits

Making America Great again Iacocca’s six point program 3.Energy independence by taxing foreign energy 4.Specific limits to Japan’s Market share in critical industries 5.Cut in costs and funding mechanism for federal entitlement programs 6.Need for more American Engineers, Scientists and Technicians 7.Incentive to increase R&D 8.Long term program to re-build

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