On This Day, May 10th

1. 1980: Chrysler receives $1.5 billion loan from the U.S. Government

Lee Iacocca Photo: curbsideclassic

Lee Iacocca
Photo: curbsideclassic

Photo: Nytimes

Photo: Nytimes

There was a time when Chrysler was one of the hottest selling cars on the market. But due to the oil crisis of the early 1970’s and much more strict emission requirements set fourth by the government they found themselves in a very dire situation. In 1979 they had to stick their tail between their legs and ask the government to help bail them out with a loan. It was on this day in 1980 that the Secretary of the Treasury G. William Miller announced that the government would step in and offer a loan to the tune of $1.5b billion, with certain conditions. Chrysler was required to raise another $2 billion on their own. Lee Iacocca not only raised the $2 billion but by 1983 was able to pay back the loan given by Uncle Sam and just one year later was able to turn a profit of nearly $2.4 billion.


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