Lee Iacocca

In 1968, Iacocca foresaw the need for domestically produced, small, fuel-efficient vehicles,[9] and proposed a vehicle that weighed less than 2,000 pounds and would be priced at less than $2,000. Although Ford's European subsidiary was already selling such a model (the Ford Escort), a team of Ford designers was assigned to create the exterior and interior of an entirely new car, which would be named Pinto. The Pinto entered production beginning with the 1971 model year. Iacocca was described as the "moving force" behind the Ford Pinto.[10]

In 1977, there were allegations that the Pinto's structural design allowed its fuel-tank filler neck to break off and the fuel tank to be punctured in a rear-end collision, resulting in deadly fires.[9] This case is a staple of engineering ethics courses as an example of a bad cost–benefit analysis.[11] In 1978, all 1971–76 Pintos were recalled and had safety shielding and reinforcements installed to protect the fuel tank.[9]

The Dodge Aries, a Chrysler K-Car

Realizing that the company would go out of business if it did not receive a large infusion of cash, Iacocca approached the United States Congress in 1979 and successfully requested a loan guarantee. To obtain the guarantee, Chrysler was required to reduce costs and abandon some longstanding projects, such as the turbine engine, which had been ready for consumer production in 1979 after nearly 20 years of development.

Chrysler released the first of the K-Car line, the Dodge Aries and Plymouth Reliant, in 1981. Similar to the later minivan, these compact automobiles were based on design proposals that Ford had rejected during Iacocca's (and Sperlich's) tenure. Released in the middle of the major 1980-1982 recession, the small, efficient, and inexpensive front-wheel drive cars sold rapidly. In addition, Iacocca re-introduced the big Imperial as the company's flagship. The new model had all of the newest technologies of the time, including fully electronic fuel injection and all-digital dashboard.

Chrysler introduced the minivan, chiefly Sperlich's "baby", in late 1983. It led the automobile industry in sales for 25 years.[15] Because of the K-cars and minivans, along with the reforms Iacocca implemented, the company turned around quickly and was able to repay the government-backed loans seven years earlier than expected.

Iacocca's desire to obtain Jeep Grand Cherokee's design was the driving force behind Chrysler's 1987 acquisition of American Motors Corporation.

Iacocca led Chrysler's acquisition of AMC in 1987, which brought the profitable Jeep division under the corporate umbrella. It created the short-lived Eagle division. By this time, AMC had already finished most of the work on the Jeep Grand Cherokee, which Iacocca wanted. The Grand Cherokee would not be released until 1992 for the 1993 model year, the same year that Iacocca retired.

Throughout the 1980s, Iacocca, with the help of his longtime friend and advertisement executive, Leo-Arthur Kelmenson, appeared in a series of commercials developed by Kenyon & Eckhardt for the company's vehicles, employing the ad campaign, "The pride is back," to denote the turnaround of the corporation.[16] He also voiced what was to become his trademark phrase: "If you can find a better car, buy it."[17]

Iacocca retired as president, CEO, and chairman of Chrysler at the end of 1992.[18]

In 1995, Iacocca assisted in billionaire Kirk Kerkorian's hostile takeover of Chrysler, which was ultimately unsuccessful. The next year, Kerkorian and Chrysler made a five-year agreement which included a gag order preventing Iacocca from speaking publicly about Chrysler.[19]

In July 2005, Iacocca returned to the airwaves as Chrysler's pitchman,[1] along with celebrities such as Jason Alexander and Snoop Dogg, to promote Chrysler's "Employee Pricing Plus" program; the ads reprise the "If you can find a better car, buy it" line, Iacocca's trademark of the 1980s.[17] In return for his services, Iacocca and DaimlerChrysler agreed that his fees, plus a $1 donation per vehicle sold from July 1 through December 31, 2005, would be given to the Iacocca Foundation for type 1 diabetes research.

In an April 2009 Newsweek interview, Iacocca reflected on his time spent at Chrysler and the company's current situation. He said:[20]

This is a sad day for me. It pains me to see my old company, which has meant so much to America, on the ropes. But Chrysler has been in trouble before, and we got through it, and I believe they can do it again. If they're smart, they'll bring together a consortium of workers, plant managers and dealers to come up with real solutions. These are the folks on the front lines, and they're the key to survival. Let's face it, if your car breaks down, you're not going to take it to the White House to get fixed. But, if your company breaks down, you've got to go to the experts on the ground, not the bureaucrats. Every day I talk to dealers and managers, who are passionate and full of ideas. No one wants Chrysler to survive more than they do. So I'd say to the Obama administration, don't leave them out. Put their passion and ideas to work.

Because of the Chrysler bankruptcy, Iacocca lost part of his pension from a supplemental executive retirement plan, and a guaranteed company car during his lifetime. The losses occurred after the bankruptcy court approved the sale of Chrysler to Chrysler Group LLC, with ownership of the new company by the United Auto Workers, the Italian carmaker Fiat and the governments of the United States and Canada.[21]

External video
Presentation by Iacocca on Where Have All the Leaders Gone?, April 23, 2007, C-SPAN

In 1984, Iacocca co-authored (with William Novak) an autobiography, titled Iacocca: An Autobiography. It was the best selling non-fiction hardback book of 1984 and 1985.[2] The book used heavy discounting which would become a trend among publishers in the 1980s.[22] Iacocca donated the proceeds of the book's sales to type 1 diabetes research.

In 1988, Iacocca co-authored (with Sonny Kleinfeld) Talking Straight,[23] a book meant as a counterbalance to Akio Morita's Made in Japan, a non-fiction book praising Japan's post-war hard-working culture. Talking Straight praised the innovation and creativity of Americans.[24]

On April 17, 2007, Simon & Schuster published Iacocca's book, Where Have All the Leaders Gone?, co-written with Catherine Whitney.[25][26]

Iacocca partnered with producer Pierre Cossette to bring a production of The Will Rogers Follies to Branson, Missouri, in 1994. He also invested in Branson Hills, a 1,400-acre housing development.[27]

In 1993, he had joined the board of MGM Grand, led by his friend Kirk Kerkorian.[28] He started a merchant bank to fund ventures in the gaming industry, which he called "the fastest-growing business in the world".[29] In 1995, he sold his interests in several Indian gaming projects to Full House Resorts, a casino operator led by his friend Allen Paulson, becoming a major shareholder and later a member of the board of directors.[30]

Iacocca founded Olivio Premium Products in 1993. Olivio's signature product was an olive oil-based margarine product. Iacocca appeared in commercials for Olivio.[31]

Iacocca joined the board of restaurant chain Koo Koo Roo in 1995.[32] In 1998, he stepped up to serve as acting chairman of the troubled company, and led it through a merger with Family Restaurants (owner of Chi-Chi's and El Torito). He sat on the board of the merged company until stepping down in 1999.[33]

In 1997, Iacocca founded Iacocca, a company formed to develop and market electric bikes with a top speed of 15 mph and a range of 20 miles between recharging at wall outlets.[34] They produced E-Bike SX, which became the first widely popular electric bicycle in the US.[35] In 1999, Iacocca became the head of EV Global Motors.[36]

In May 1982, President Ronald Reagan appointed Iacocca to head the Statue of Liberty-Ellis Island Foundation, which was created to raise funds for the restoration of the Statue of Liberty and the renovation of Ellis Island.[37] Iacocca continued to serve on the board of the foundation until his death.

Following the death of Iacocca's wife Mary from type 1 diabetes, he became an active supporter of research for the disease. He was one of the main patrons of the research of Denise Faustman at Massachusetts General Hospital. In 2000, Iacocca founded Olivio Premium Products, which manufactures the Olivio line of food products made from olive oil. He donated all profits from the company to type 1 diabetes research. In 2004, Iacocca launched Join Lee Now,[38] a national grassroots campaign, to bring Faustman's research to human clinical trials in 2006.

Iacocca was an advocate of "Nourish the Children", an initiative of Nu Skin Enterprises,[39] since its inception in 2002, and served as its chairman. He helped donate a generator for the Malawi VitaMeal plant.

Iacocca led the fundraising campaign to enable Lehigh University to adapt and use vacant buildings formerly owned by Bethlehem Steel, including Iacocca Hall on the Mountaintop Campus of Lehigh University. Today these structures house the College of Education, the biology and chemical engineering departments, and The Iacocca Institute, which is focused on global competitiveness.

Iacocca played Park Commissioner Lido in "Sons and Lovers", the 44th episode of Miami Vice, which premiered on May 9, 1986.[40] The name of the character is his birth name, which was not used in the public sphere due to the trouble of mispronunciation or misspelling.

Iacocca was married to Mary McCleary on September 29, 1956. They had two daughters. Mary Iacocca died from type 1 diabetes on May 15, 1983. Before her death, Iacocca became a strong advocate for better medical treatment of type 1 diabetes patients, who frequently faced debilitating and fatal complications, and he continued this work after her death.

Iacocca's second marriage was to Peggy Johnson. They married on April 17, 1986, but in 1987, after nineteen months, Iacocca had the marriage annulled. He married for the third time in 1991 to Darrien Earle. They were divorced three years later.

Iacocca resided in Bel Air, Los Angeles, California, during his later life.[41] He died on July 2, 2019, at his home in Bel Air, at the age of 94.[42] The cause was complications of Parkinson's disease.[43][44] His funeral was held on July 10, 2019, at St. Hugo of the Hills Roman Catholic Church and he was buried at White Chapel Memorial Cemetery in Troy, Michigan.[45][46]

• Iacocca, Lee (2007). Where Have All the Leaders Gone. Scribner. ISBN 978-1-4165-3247-7.
• Iacocca, Lee and Sonny Klenfield (1988) Talking Straight. Bantam. ISBN 0-553-05270-5
• Iacocca, Lee and William Novak (1986 reissue). Iacocca: An Autobiography. Bantam. ISBN 0553251473

• Vlasic, Bill and Bradley A. Stertz (2000). Taken for a Ride: How Daimler-Benz Drove off with Chrysler. William Morrow & Company. ISBN 0688173055.