On October 23, 2008, Daimler announced that its stake in Chrysler had a book value of zero dollars after write offs and charges. Cerberus has since accused Daimler of providing misleading information during the 2007 sale negotiations.
Amid the 2008 automobile crisis, Chrysler announced in December 2008 that it was almost out of cash, and might not survive past 2009. After the defeat of the auto bailout in the Senate, Chrysler stated that they would most likely file for bankruptcy and shut down all operations permanently. On December 17, 2008, Chrysler announced that it would close all of its North American plants on December 19 for at least a month or longer. That same day, President Bush announced a $13.4 billion rescue loan for the American automakers, including Chrysler.
Founding and early years
The company was founded by Walter P. Chrysler on June 6, 1925, when the Maxwell Motor Company was re-organized into the Chrysler Corporation.
Walter Chrysler had originally arrived at the ailing Maxwell-Chalmers company in the early 1920s, having been hired to take over and overhaul the company's troubled operations (just after having done a similar rescue job at the Willys car company).
In late 1923 production of the Chalmers automobile was ended.
Then in January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler was a 6-cylinder automobile, designed to provide customers with an advanced, well-engineered car, but at a more affordable price than they might expect. (Elements of this car are traceable back to a prototype which had been under development at Willys at the time that Walter Chrysler was there).
The Maxwell was then dropped after its 1925 model year run, although in truth the new line of lower-priced 4-cylinder Chryslers which were then introduced for 1926 were basically Maxwells which had been re-engineered and rebranded.
It was during this period that Walter Chrysler assumed the presidency of the company, with the company then ultimately incorporated under the Chrysler name.