Lee Iacocca, King of Detroit

Lee Iacocca, the son of a poor immigrant, has becomeIaccoca, they also announced their worst deficit in
oneof America's most respected business men. Fromhistory.
lowly beginningsand through many adversities, heThe internal affairs at Chrysler were a mess. This was
worked his way up to Presidentof the Chryslera companythat was going to the dogs, and going there
Corporation.fast.
Just out of college, he began working for the FordRolling up his shirt sleeves, Lee went to work trying to
Motor Companyas a student engineer. On thebringsome manner of cohesion to the upper level
assembly line, he learned every aspectof howmanagement. Then hehired a top notch public relations
automobiles were put together.firm to get back customer confidence.
Although he was awkward and bashful, Lee wasThings still didn't get any better. To make matters
promoted to asalesman. It was there that he met aworse, theworld economy in 1979 was falling apart.
man who took him under hiswings and taught IacoccaGas prices were doublingand the fuel efficient import
how to be the best salesman he could.cars were taking over domestic sales.
In 1956 sales were slumping at Ford. IacoccaChrysler got hit hard.
suggested offeringa new 1956 Ford for a modestIaccoca's company was going under and he knew it.
down payment, followed by threeyears of $56There wasonly 1 course for him to take. He went to
payments. The "56 for 56" idea took off like a rocket.the US Government seekingloans for a bail out.
After 10 long years of hard work, Lee had become anCongress was not impressed, but Lee had donehis
"overnightsuccess."homework. He argued that if Chrysler collapsed it
Soon he was promoted to work as manager forwould cost thecountry $2.75 billion dollars alone in
Ford's nationaltruck marketing, then another promotionunemployment benefits.
to head the company'scar marketing.His speech before the US Congress was so
Not stopping there, Iacocca set out to develop his ownconvincing, that
style ofcar. In 1964 Ford introduced the Mustang. FordIacocca and Chrysler got their loans.
dealerships wereliterally mobbed with people wantingIn his fight for survival, Lee cut his own salary to $1 a
to buy the car and a newyearly sales record wasyear.
established.Everybody in management got a salary cut except for
In 1970, Lee was promoted to the ultimate position,the secretaries,who Iaccoca believed deserved every
presidentof Ford Motor Company, second in commandcent they made.
under Henry Ford II.Next he took on the union and said: "Look boys, I've
Never wanting to stop at success, he kept coming upgot a shotgunto your head. I've got thousands of jobs
withinnovative and cost cutting ideas.at seventeen bucks an hour.
But, trouble lay ahead.I've got no jobs open at twenty."
Ford was in control, like it or not, and he liked toThe company began an all-American ad campaign to
exercise thatcontrol whatever the consequencespromotetheir new fuel efficient K-car. The car soon
might be. Ford began to worry aboutthis "son of anbegan to sell like hotcakes.
immigrant" taking over the family business.His persistence and "never give up" attitude and his
It was salami slicing time at Ford. And Henry did it onewillingnessto do whatever measures it took to ensure
slice ata time. Finally, Lee learned through a friend thatthe viability of thecompany worked. Chrysler paid back
he too had gotten theaxe.the loans a full seven yearsahead of their due date.
Under the terms of resignation, Iaccoca was given anLee Iacocca had become a roaring success.
office untilhe found a job. It turned out to be in anHis thoughts are:
obscure warehouse. A littlecubicle with a small desk,"Apply yourself. Get all the education you can, but then,
one telephone, and cracked linoleumon the floor.by God,do something! Don't just stand there, make
For Iaccoca it was like being sent to Siberia.something happen. It isn'teasy, but if you keep your
It wasn't long before he was offered the presidencynose to the grindstone and work at it, it'samazing how
of Chryslerin a free society you can become as great as you
Corporation. Not exactly a cushy position. Chryslerwantto be. And, of course, also be grateful for
was in trouble,big trouble. The same day Chryslerwhatever blessings Godbestows on you.
announced the hiring of Lee