Congress Ordered Chrysler's Factories Shut Down — Until One Man Saved The Company

In 1979, Chrysler was losing $1.1 billion a year. 110,000 unsold cars sat on factory lots, suppliers refused to ship without cash up front, and Congress was debating whether to let the entire company collapse. Then Lee Iacocca, freshly fired from Ford, walked in, cut his salary to $1, and bet his reputation on proving Washington wrong. The bailout came with conditions designed to be nearly impossible to meet. He met every single one. Seven years ahead of schedule, Chrysler repaid the $1.5 billion in federally guaranteed loans, and the U.S. Treasury walked away with a $500 million profit. This is how one of the most dramatic corporate rescues in American history actually happened. CHAPTERS 0:00 Chrysler on the Brink in 1979 4:04 Lee Iacocca Walks Into the Wreckage 8:27 Congress Debates Letting Chrysler Die 14:05 The $1 Salary and the National Ad Campaign 18:17 Cutting $1.4 Billion in Costs 20:27 The K-Car: Austerity Funds Innovation 21:11 The Comeback and the $500 Million Profit 22:52 The Minivan That Cemented the Turnaround 23:52 The Legacy of the Chrysler Rescue