Chrysler expanded into Europe by taking control of French, British, and Spanish auto companies in the 1960s; Chrysler Europe was sold in 1978 to PSA Peugeot Citroën for a nominal $1. The company struggled to adapt to changing markets, increased U.S. import competition, and safety and environmental regulation in the 1970s. It began an engineering partnership with Mitsubishi Motors, and began selling Mitsubishi vehicles branded as Dodge and Plymouth in North America. On the verge of bankruptcy in the late 1970s, it was saved by $1.5 billion in loan guarantees from the U.S. government. New CEO Lee Iacocca was credited with returning the company to profitability in the 1980s. In 1985, Diamond-Star Motors was created, further expanding the Chrysler-Mitsubishi relationship. In 1987, Chrysler acquired American Motors Corporation (AMC), which brought the profitable Jeep, as well as the newly formed Eagle, brands under the Chrysler umbrella. In 1998, Chrysler merged with German automaker Daimler-Benz to form DaimlerChrysler AG; the merger proved contentious with investors. As a result, Chrysler was sold to Cerberus Capital Management and renamed Chrysler LLC in 2007.
chrysler expanded into europe by taking control of french british and spanish auto companies in the 1960s; chrysler europe was sold in 1978 to psa peugeot citroën for a nominal $1 the company struggled to adapt to changing markets increased us import competition and safety and environmental regulation in the 1970s it began an engineering partnership with mitsubishi motors and began selling mitsubishi vehicles branded as dodge and plymouth in north america on the verge of bankruptcy in the late 1970s it was saved by $15 billion in loan guarantees from the us government new ceo lee iacocca was credited with returning the company to profitability in the 1980s in 1985 diamond-star motors was created further expanding the chrysler-mitsubishi relationship in 1987 chrysler acquired american motors corporation (amc) which brought the profitable jeep as well as the newly formed eagle brands under the chrysler umbrella in 1998 chrysler merged with german automaker daimler-benz to form daimlerchrysler ag; the merger proved contentious with investors as a result chrysler was sold to cerberus capital management and renamed chrysler llc in 2007