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