THE NEW CHRYSLER
ACQUISITIONS AND EXPANSION
Chrysler expanded into electronics and aerospace activities and enlarged its international operations in the 1980s. In 1984, the company reported its best earnings year ever and reorganized itself into a holding company made up of four operating divisions -- Chrysler Motors, Chrysler Financial, Gulfstream Aerospace and Chrysler Technologies.
Chrysler continued its overseas expansion as it acquired 15.6 percent equity in Italian luxury car manufacturer. Officine Alfieri Maserati SpA, in 1984. The relationship between Maserati and Chrysler ended in August 1988 and the equity was later sold.
Chrysler and Mitsubishi Motors Corporation formed Diamond-Star Motors Corporation in 1985, as a joint venture company to manufacture small cars in the United States. Production of the Plymouth Laser started three years later in Normal, Illinois.
After a nine-year absence, Chrysler re-entered the European market in 1987 by exporting the Chrysler LeBaron convertible, the Plymouth Voyager and the Dodge Daytona. All the vehicles were sold in Europe under the Chrysler badge. Later that year, Chrysler Motors purchased Nuova Automobili F. Lamborghini SpA, the maker of the famous Countach. Today, the Italian specialty automotive manufacturer produces the Diablo -- the world's fastest production automobile -- as well as other sports cars and high performance marine racing engines.
Chrysler also made its biggest acquisition in 1987, purchasing American Motors Corporation, the fourth largest U S. automotive company. The $800 million acquisition included the world-famous Jeep®, three automotive assembly plants, 1,600 dealerships, and a joint venture, Beijing Jeep Corporation of Beijing, China.
As a result of the acquisition, Chrysler launched the Eagle brand in 1987, the first new Chrysler brand since 1928 when Plymouth and De Soto were launched.
Chrysler acquisitions and joint ventures in the late 1980s also included: 1987 Electrospace Systems, which manufactured and installed tactical and intelligence systems for aircraft, ships and missiles.
1988 A joint agreement between Flat and Chrysler to distribute Alfa Romeo vehicles in the U.S. and Canada. which ended in November 1991.
1989 A joint venture between Chrysler and General Motors called New Venture Gear -- the first joint venture between domestic automotive companies to make transmission components.
1989 Technologies Airborne Systems, to develop aircraft technology.
1989 Pentastar Transportation Group, Inc., which offers rental vehicles through: Thrifty Rent-A-Car System, Inc. and Dollar Rent A Car Systems, Inc.
1989 A joint venture agreement with Steyr-Daimler-Puch of Austria to build minivans for the European market
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