Chrysler in Trouble Essay

Words: 1037
Pages: 5

“Chrysler In Trouble”


Chrysler started as a merger of two men, one of whom was having declining sales after World War 1 in the 20’s which caused him to have high debts. Walter T. Chrysler joined Maxwell Motor Corporation to help bring the company back from the high debts. In 1924 the first Chrysler was launched in the automobile market. Over the years the company introduced many different models. They also developed by the end of the 1950’s the HEMI engine along with power steering, power windows, power brakes, alternator, electronic fuel injection and many other innovations. With the oil crisis of the 1970’s created a demand for fuel efficient cars which Americans preferred the Japanese car’s over the American
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The American’s wanted what Chrysler didn’t make and not listening to what they wanted they forced themselves into this situation. I know that people come to any type of store looking for specific items and if they don’t find it on the shelves they will shop elsewhere. And this is want they did, and since they didn’t have any in the research and development the customers were giving up on the company and going to the competition. Even if that competition was not American made.
Finding of Fact #3
Too many acquisitions too close together affected their cash flow and caused the company to start making cuts throughout the company.

Cash flow is important in keeping a company going. Too much money going out and not enough coming in is what affect the company. They kept buying up companies and they were not helping with cash flow back into the company. This is poor management practices on their part. Many businesses may continue to trade in the short-to medium-term even if they are making a loss. The only possible way they can do this is by delaying paying their creditors, and the company will not survive long without cash to meet their immediate needs. Without the sales of the fuel efficient cars that American’s want there will be no cash flow into the business. The choice of not designing these types of