Lee Iacocca To Lose Company Car And Pension In Chrysler Bankruptcy

by Deidre Woollard (RSS feed)
May 29th 2009 at 8:02PM

It's trendy lately to rage against the cushy deals that retired execs get but it saddens me a little to learn that Lee Iacocca, the car executive who turned Chrysler around n the 1980s, may lose a major part of his pension and a guaranteed life-long company car as part of the fall-out from Chrysler's bankruptcy deal. Reuters reports that Chrysler CEO Robert Nardelli told a U.S. bankruptcy court that Iacocca's pension would be among the obligations Chrysler won't be paying if it gets bankruptcy court approval to sell itself to a "New Chrysler" to be owned by its union, the U.S. and Canadian governments and Fiat. Iacocca's retirement was part of a supplemental executive retirement plan including non-IRS qualified pension funds that are therefore subject to bankruptcy. Chrysler is also stopping a program that gave company cars for life to former executives and directors including Iacocca (shown above in 2005 with a Mercedes Maybach).

Iacocca, who was the president of Ford in the mid 1960s, came to national attention in the 1980s when he starred in the Chrylser commercials touting the quality and durability of his American-made cars. The gallery below traces Iacocca's career including his ill-fated adventure in selling electric bicycles. In a commercial from 1984, placed after the jump, it's interesting to see how Iacocca dealt with the bankruptcy facing his company over two decades ago. His straight talking approach and focus on hard work appealed directly to the American people buying his cars. As he says in the commercial: "I have one, and only one, ambition for Chrysler, to be the best."

Gallery: Lee Iacocca Through The Years

Tags: bankruptcy, chrysler, lee iacocca, LeeIacocca, pension

Filed under: Luxury Cars & Autos

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Reader Comments (Page 1 of 6)

Andy May 29th 2009 10:03PM

This is the thanks Chrysler gives him for rescuing them years ago? Only in the US can a "guaranteed life-long company car" be taken away.

Randy Jun 3rd 2009 11:02AM

Slight correction - Only in the "Obama America" would a contractual committment be negated in order for the democrat messiah to win more brownie points from the union and his ivy league buddies in the investment houses.

Lou Jun 2nd 2009 10:57AM

I think he can afford his own car and car insurance like we have to do. That is why a lot of companies are in trouble because they provided life long company cars for executives and large pensions even when they are not making money. I am sure he has plenty of his own money to live on like everyone else has to do when they retire. It is time for people to get real.

donnymac. Jun 2nd 2009 11:49AM

Lee what have you done for the company lately? What a ridiculous benefit for a company to offer any executive. And these nitwits wonder why they are in financial trouble. Just another example of greedy executives abusing the company past present and future. Some of these captains of industry still have use of the corporate jets after they retire. I wonder did Lee slip that one by us.

Ruthanne May 29th 2009 10:54PM

I agree...it is saddening and doesn't seem right.

sam Jun 2nd 2009 11:19AM

I am soooooo F...ing tired of you folks wanting to blame President Obama for everything. The truth of it is... this financial crisis was a long time coming and goes back to the Clintons and the cap was put on by the Bush administration. This new president is trying his best to right a tremendous mess that HE had NOTHING TO DO WITH, but inherited it. Get a grip and STOP BLAMING HIM for things he was NOT responsible for.

reidgator Jun 2nd 2009 1:03PM

Responding to Sam: I agree that we should not blame Obama. The blame lies mostly with the American consumer. The rest lie with the liberal Democrats who: (1) who stifled the efforts to tighten regulations on Fannie Ma and Freddie Mac (Barney Frank and Chris Dodd) and (2) refused to cooperate on efforts to increase domestic oil production and reduce gas prices. On July 14, 2008, Bush signed the executive order lifting the ban on offshore drilling. (Against the wishes of the liberals). The VERY next day, oil prices began dropping and continued to drop for the next 4 months. Can you imagine the shape our economy would be in NOW if we were still paying $4/gallon?

John C. Randolph May 30th 2009 1:00PM

Iacocca didn't rescue Chrysler, the US taxpayer did. The man is a corporate welfare queen.

-jcr

Rob Jun 2nd 2009 6:43AM

John my friend you are an uninformed idiot. While the American Tax Payer did provide the money that loan was paid back in full, one full year early with a interest rate more than a full point above the prime rate.

The ONLY way the American Taxpayers are going to see a dime in return to the American Tax payer from this OBAMAnation called Corporate Bailout is when hell freezes over. This great country is going to have change alright but I guarantee that the American People won't like it. We are becoming a country of GUTLESS WONDERS

A VOTE FOR OBAMA IS ABOUT THE SAME AS A CHICKEN VOTING FOR COL SANDERS

Pat Jun 2nd 2009 7:14AM

I think you and the Obama hater are both right. Lee did sort of bail out Chrysler in the 80's. However, it was saved by a huge government contract building tanks for the military. What is this picking on Obama stuff. Look at the Stock Market two years ago. Then look at it one year ago. Then look at it when he took over. He was handed a bag of junk. Is his handling the right way? I don't know.. I am sure a lot of arm chair quarterbacks have the answer.

ted Jun 2nd 2009 10:32AM

It would be nice if you knew what you were talking about. As others have pointed out, he lead the company back, the US government made mucho money over the loan. Didn't your union briefing paper mention that or was it the DNC?

reidgator Jun 2nd 2009 12:55PM

Actually, all "tax dollars" given to Chrysler were REPAID.
How many "weflare queens" ever paid back what they were given?

inny May 31st 2009 7:03AM

You feel sorry for Iacocca?

Have you lost you freakin minds.

Brandon Jun 2nd 2009 12:28PM

Maybe if they had given him a Chrysler instead of a Maybach he could keep it. I'm pretty sure he has enough money to buy his own Maybach. You idiots are focusing on the wrong things in life.

Richard Jun 10th 2009 12:35AM

Sorry for Iacocca ????? Supplemental executive plan means in addition to his regular retirnment plan & his non IRS qualified pension funds were taken away ? I wish that I did not have to pay IRS since they take more form me that i bring home & what about all of the poor employees that were layed off ????? Those employees have no supplemental retirnment plans, no qualified pension plans, no executive bonouses to fall back on & now no job. Iacocca will live fine off the money he already has & maybe now he will but a ford & stop having us pay for his mecerdes.

LaVonD Jun 2nd 2009 8:27AM

Richard, There is something afloat in congress and it has been there for a couple of years... It's called "The FAIRTAX Plan" Should be put into effect immediately! It would work wonders for this economic mess we're in.. See details at "FAIRTAX.ORG"

GRouston Jun 2nd 2009 6:40AM

Iacocca was a good man, he did turn Chrysler around even though he needed help from us taxpayers, he paid it all back in record time, did what he said he would do, unlike so many today, talk is cheap. Good job Lee, the old days are gone, sorry to say. Mans word meant something, people had substance, truth, Country, Prayer and apple pie were hallmarks.