In 1990 Chrysler Corporation in the US was short of money, offered a limited range of products, had a poor reputation and was moving into a major recession from which few believed it could possibly emerge. In 1994, however, the company broke retail sales records and generated more income than any previous year. Dealers experienced their most profitable year ever, and Chrysler become the lowest-cost car manufacturer in the world. Chrysler woke up and realised that, to survive, it had to recreate itself. The company started communicating openly and regularly with the key audiences and simultaneously developed new products to meet marked demands and solidify its market position. Management formed “plat form teams” to improve the design and accelerate production of Chrysler’s vehicles particularly its pioneering min –vans. Source: Adopted from Grates (1995) What did the management of Chrysler do to survive?
