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 6 of 6)

ThomasBlixa Jun 2nd 2009 1:48PM

I agree, How can you take away a guaranteed life long car?
He should be given some consideration for saving Chyrsler once already!

Colin Jun 2nd 2009 1:55PM

This is the message that the Obamanation is sending me. “So, you expect to be rewarded for doing a better job than any of your competitors? You think just because you pay back what you owe with interest, create a massive profit for your company which resulted in a revived local economy with new and higher paying jobs that it will mean anything at all? NOT ON MY WATCH!”
No good thing goes unpunished under Socialist Rule unless the “Fearless Leader” can in some part take credit for it.

JO JO Jun 2nd 2009 1:59PM

WITH ALL THE COMPLAING AND WHINNING ABOUT THE CEOS AND LEE'S GOOD FORTUNE I FIND ALL OF THIS INTERSTING IN THAT NOBODY.......I MEAN NOBODY.......EVER COMPLAINS ABOUT THE HIGH SALERIES OF THOSE THAT WORK IN THE PROFESSONAL SPORTS INDUSTRY. ARE YOU AWARE THAT KOBE BRYANT MAKES A MINNIMUM OF 25 MILLION DOLLARS.......PER YEAR!!! BUT WHAT IS VERY DISTRUBING ABOUT THIS SCENE IS THAT MOST OF PROFESSIONAL SPORTS ARE BEING SUBSIDIZED BY THE FEDERAL GOVERMENT. HOW ? JUST TRY TO BUY A GOOD COURT SIDE SEAT AT ANY NBA GAME AND YOU'LL LEARN THAT ONLY THE WEALTHY CAN AFFORED THEM. AND GUESS WHAT? THEY CAN AFFORED THEM AND THE SKY BOXES BY BUYING THE SEATS IN A COOPERATE NAME. THUS THE COMPANY GAINS A WRITE OFF!!!! I SAY.......TAKE THIS TAX DODGE OFF THE BOOKS NOW. WHEN IT HAPPENS WATCH THE PRICES OF THOS SKY BOXES AND COURT SIDE SEATS SINK IN VALUE.

WFG Jun 2nd 2009 2:03PM

SOMEONE REFERED TO OBAMA AS THE MESSIAH: THAT MAY BE A GOOD DESCRIPTION, IF HE PULLS US OUT OF THE BUSH DARK AGES (USUALLY THE DARK AGES REFERS TO THE PERIOD THE CHURCH RAN THE WORLD); HOWEVER HE IS OUR ONLY HOPE DESPITE THE HATE ON THE RIGHT WING NIT WITS, THAT ACTUALLY THINK BUS WAS A GOOD PRESIDENT. BUSH IS THE ONLY PRESIDENT IN ALL HISTORY THAT DID NOTHING RIGHT. AFGANASTAN WAS A FLOP, BECAUSE WE WENT INTO IRAQ AND LOSS FOCUS, BEN LAUDEN IS STILL IN POWER, AND THE IDIOT WENT BACK TO HIS VILLAGE IN TEXAS.

HJM Jan 1st 2010 4:22AM

WGM - It might be a good idea to look at how Obama is disregarding the rule of law by trampling and disregarding the rights of bond holders and shareholders. Nobody will invest in either companies or bonds because under this administration your rights under bankrupcy laws do not exist anymore. With the amount of money being printed the dollar will be worth less and less and everything else will become more expensive. Bush made a lot of mistakes but he did not lead this country into bankrupcy with socialist agendas and policies. GM and Chrysler will not exist in two years from now.

Gatsby Jun 3rd 2009 8:16AM

Lee Iacocca was extremely critical to the rescue of Chrysler. He developed the K-car series (Dodge Aries and Plymouth Reliant) which became huge successes. He was also responsible for the development of the minivans (Dodge Caravan and the Plymouth Voyager). Both the K-cars and the mini-vans were soundly rejected by Ford when Iacocca was its president. The Chrysler minivans lead the automotive industry in sales for 25 years. In addition to this, Iacocca took a one dollar a year salary in the mid 80's, for one year. The loan that Chrysler received from the federal government, over $800,000,000, was paid back 7 YEARS EARLY, thanks to the development of the K-cars and minivans. He also appeared in numerous Chrysler commercial saying, "If you can find a better built car, buy it." I dare say this only added to the rescue of Chrysler. Yes, Iacocca did have a tremendous part in keeping Chrysler from going bankrupt in the early to mid 80's. And to think Henry Ford II fired him in 1978, despite the fact that Ford recorded a 2 "BILLION" dollar profit that year.

Ronnie Floyd Jun 2nd 2009 3:11PM

Why are all of the smart "SMART" people worried about YESTERDAY..............Its TOMMORROW that will effect our families

jon Jun 2nd 2009 2:31PM

a deal is a deal, iaccoca earned his pension and free cars. no one has the right to criticise him for it. he worked for everything he has, he is a very respectable man in the industry. to many jealous losers out there, including the ones that mommy and daddy have to buy there cars for them and pay there college too. ..........wake up and realise obama is a smiling crocodile taking away the constitution and america,s dignity and freedom.

jan Jun 2nd 2009 3:02PM

There are no guarantees in life anymore. So if you think that GM Vehicles are going to keep their promise and warrente the cars parts, your kidding yourself. Lets all just file for backrupcey and get ride of all our debts. The country is showing us that it's all right to do. Right? They are not teaching us and the young people of this country how to be reponsible.

Jeff Jun 2nd 2009 3:06PM

Anyone over the age of 30 should know that neither political party is innocent in respect to the mess we are in. We all share some of the blame and responsibility. Remember the oil crisis of the 70s? Once oil went back down to relatively low levels how much did we demand that our government officials push for alternatives? It was our own short-term view since we were not being financially pinched. I keep hearing complaints, but how are each of you as individuals holding your Representatives and Senators accountable for their lack of character and vision. We need a kick butt and take names later third party that will bring back financial responsibility, morality, and integrity to the government of this nation. Otherwise we can just whine, and watch our country slide into socialism. EXPECT MORE OF YOUR POLITICIANS!

Disappointed Jun 2nd 2009 4:12PM

Hmm, wonder how much Nardelli will get this year and the future as he sacrifices the pension of some who really did save Chrysler years ago?

I agree getting top-of-line Maybach is too much, especially in current economy. He can probably afford to get something himself. But it's the unchecked greed of self-serving execs like Nardelli I can't stand.

GEEEZ Jun 2nd 2009 4:49PM

AND, lets not forget that he LEAD the group that raised the PRIVATE funds to restore THE STATUTE OF LIBERTY.

Marilyn Jun 2nd 2009 5:00PM

I am a leagal resident alien. A Brit. I can not vote.

All the comments here are negative to Obama, WHY DID YOU VOTE HIM IN FOR GOODNESS SAKES!!

I would not have voted him in, he drives me crazy with his stupid policies, but like I said I am not able to vote. Not a citizen.

Thanks for listening

redonionsauce Jun 2nd 2009 6:17PM

Somewhere back in the 1870's or 80's, my family lived on the property on which the Chrysler Building now stands. Legion has it that Boss Tweed "bought" it for $15,000. We all know how the Boss did business. Can I have the property back? My grandmother said it was worth a lot more than $15,000. back then. I wonder how much Chrysler bought it for? Tell Lee to buy his own car.

redonionsauce Jun 2nd 2009 6:25PM

bye bye miss american pie, drove my Chevy to the levy but the levy was dry, good old boys were drinking whiskey and rye singing this will be the day that I die

THIS WILL BE THE DAY THAT I DIE. To think they banned that song on the radio.

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