US OEMs spent much of the 1970s coasting, even as macro headwinds mounted. By decade's end, they were hemorrhaging cash and Chrysler would’ve gone under without a $1.5B federal bailout.
Everyone knows the story of “fuel-efficient imports ate Detroit's lunch,” but the full story is more complex.
Everyone knows the story of “fuel-efficient imports ate Detroit's lunch,” but the full story is more complex.
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Ballooning interest rates in the Volcker era were the coup de grace for the status quo.
Chrysler was the Detroit laggard until he took the rein there.
It put Detroit - and Chrysler in particular - better positioned to compete with the onslaught of Japanese competition.
It ensures that, if we are moving into a second “Malaise,” there’s a path to recovery vs. an insurmountable climb.
The correction will be painful, but it’s not hopeless.
The Japanese are just about to bend on this issue.