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Gisser Automotive Ideas, Inc.

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Declining sales and heavy financial losses pushed the Chrysler Company near bankruptcy within the late Nineteen Seventies. Making an attempt to avert the company’s collapse, the U.S. government granted Chrysler $1.5 billion in mortgage guarantees. In return Chrysler surrendered supervisory control to the federal government’s Chrysler Mortgage Guarantee Board. By exercising such management, the U.S. government grew to become a de facto partner of the country’s third largest automaker. The federal government’s influence was quick-lived as Chrysler, underneath the leadership of Lee A. Iacocca , returned to profitability and repaid its government loans in 1983, seven years early.

Within the Nineteen Nineties the Japanese economic system suffered a severe and extended recession, and the difficult interlocking relationships and cross-ownerships between Japanese automakers and their main part producers and banks imposed severe monetary hardship. Ford and GM elevated their monetary stakes in Mazda and Isuzu, respectively, with Ford taking operative control of Mazda in 1996. On the end of the 20th century, many Japanese automakers and several main component manufacturers had been either managed by or had joint operations with non-Japanese corporations. Renault, for instance, held a … Read More ...