Reborn in America: Starting as a California Resident

"Ugh!"

Meanwhile, in the study of an old-fashioned villa in Detroit, a faint scent of tobacco filled the air.

The study appeared somewhat cluttered, with bookshelves piled high with various books and documents. Several pages of handwritten notes were scattered across a large oak table, next to which sat a half-empty cup of cold coffee.

By the window, there was an old but exceptionally comfortable leather chair, with a dark suit jacket casually draped over the back.

Lee Iacocca, the former star president of Ford Motor Company and founder of Mustang, Continental Mark III, and Ford Pinto, has been at the helm of Chrysler for over three months.

He sat in the leather chair, looking down at the documents in his hands, occasionally making quick sketches on the paper with his pen.

"Given the current low consumer confidence, traditional sales models are clearly no longer able to meet market needs."

"We must adopt more innovative methods to attract customers."

For example, promoting installment payment plans for cars will greatly lower the barrier to car purchase for consumers and stimulate market demand.

This approach not only helps customers alleviate the pressure of a one-time payment, but also increases our sales and improves the company's cash flow...

As Japanese car brands continued to see increased sales in the US market, the American domestic auto industry suffered a huge blow.

The Big Three American automakers, once the world's leading automakers, are now all in trouble.

The entire industry seemed to have encountered "another Pearl Harbor attack".

Automobile production plummeted from over 1100 million vehicles the previous year to over 800 million vehicles, resulting in the loss of more than 20 jobs and the closure of 1600 car dealerships.

In particular, Chrysler, which held the third position, had a staggering financial deficit of $17 billion.

This is why Ned Bob Townsend and his family, who did not have much family background, were able to successfully gain control of Chrysler through a series of complex financial operations.

In order to consolidate its pioneering business path, Townsend quickly began to adjust its corporate governance structure and conduct strategic restructuring.

He went to great lengths to persuade Lido Anthony Lee Iacocca, who had been ousted from Ford, to become president of Chrysler.

Lee Iacocca also wanted to seize this opportunity to turn things around and make his former employer realize just how much of a loss it was to lose such a valuable talent as himself.

During this time, he also gained some understanding of the situation at Chrysler.

He had thought he was mentally prepared for Chrysler’s difficult situation, but during this time he found that he had far underestimated the challenges he would face.

In addition to the imminent problem of running out of funds.

The company's management was also extremely chaotic, with 35 vice presidents acting independently and a serious backlog of products.

Even though the new chairman, Townsend, is selling off the rest of his family's businesses in an effort to revitalize the company, these funds are still a drop in the bucket compared to Chrysler's massive debt.

At this moment, Iacocca felt as if he had boarded a pirate ship that could ruin his lifelong reputation at any moment.

However, since he was already on board, he had no choice but to grit his teeth and keep going.

Backing down in the face of battle is not in his nature!

So, in an effort to restore morale, he shouted many inspiring slogans: "To get through this, every Chrysler employee must shed just as much blood."

If someone waits for others to do things for them while they stand idly by, they will end up with nothing.

As a leader of a company, the most important thing is to lead by example and set a good example.

This way, all the employees will be watching you, and everyone will imitate you…

To demonstrate his resolve, Iacocca voluntarily reduced his annual salary from $36 to $1 in exchange for the agreement of management and ordinary employees to take a pay cut.

This move was unprecedented in the business world at the time, especially among CEOs of large corporations.

Many entrepreneurs in later generations learned this approach when taking over severely loss-making companies, and it even became a common practice.

For example, Kazuo Inamori, who is hailed as the "Saint of Management," also received a salary of $1 when he took over ANA after the financial crisis.

Next, Iacocca reorganized the company's management team, cutting redundant positions and streamlining the 35 vice presidents to 10, ensuring that each department had clear responsibilities and objectives.

The reorganization and reform of departments such as production, marketing, credit, finance, planning, and human resources have also been put on the right track.

Of course, Lee Iacocca also understood that Chrysler was ultimately a car company. Although he had brought some changes to the company and boosted morale, without a blockbuster product to maintain the current half-dead production situation, these changes would only be a flash in the pan.

As a company, Chrysler now needs more than just funding; it needs a pillar to break the deadlock: several, or at least one, best-selling products.

However, creating a product that can become a blockbuster is easier said than done!

"Ring ring!"

The phone next to Lee Iacocca suddenly rang.

He frowned, slowly put down his pen, and picked up the microphone: "Who is this?"

"Li, it's me. Did I disturb your rest?"

The next second, a familiar voice came through the receiver.

"Oh, so it's Mr. Townsend."

Chairman, I'm currently refining the plan we discussed the other day, and I haven't taken a break yet.

When facing his new boss, Lee Iacocca quickly calmed down from his initial slight dissatisfaction and tried his best to show his friendliness and professionalism.

"You've really worked hard, Li."

Townsend's voice carried a hint of concern, "I know you've been working overtime lately, and the company's situation is indeed very serious."

However, you must also take care of your health; after all, we still need you to lead Chrysler out of its predicament.

"Thank you for your concern, Chairman," Lee Iacocca replied. "How did the party go, Madam?"

"It went very smoothly."

Townsend said, "She successfully sold the property she had planned to acquire, raising more than $6.7 million."

"That's wonderful!"

Lee Iacocca breathed a sigh of relief. "This funding can temporarily alleviate our immediate crisis."

"I know this amount of money isn't much, but I'll raise more as soon as possible, don't worry."

Townsend, who was even more aware of Chrysler's perilous situation, mustered his spirits and asked, "How's the reform you're preparing going?"

"I plan to launch some innovative sales strategies, such as car installment payments, to attract more consumers..."

"Very good, Li."

"With our combined efforts, Chrysler will surely regain its former glory."

"Also, I called you tonight to tell you that in addition to the funds, Ruth also received a special gift from the Getty family."

......