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Lee Iacocca Interview (May 5, 1990)

Lido Anthony "Lee" Iacocca (/ˌaɪ.əˈkoʊkə/ EYE-ə-KOH-kə; October 15, 1924 – July 2, 2019) was an American automobile executive best known for the development of the Ford Mustang, Continental Mark III, and Ford Pinto cars while at the Ford Motor Company in the 1960s, and for reviving the Chrysler Corporation as its CEO during the 1980s.[1] He was president and CEO of Chrysler from 1978 and chairman from 1979, until his retirement at the end of 1992. He was one of the few executives to preside over the operations of two of the Big Three automakers.[2] Iacocca authored or co-authored several books, including Iacocca: An Autobiography (with William Novak), and Where Have All the Leaders Gone?. Iacocca was born in Allentown, Pennsylvania to Nicola Iacocca and Antonietta Perrotta, Italian Americans (from San Marco dei Cavoti, Benevento) who had settled in the steel producing region of Pennsylvania's Lehigh Valley. Members of his family operated a restaurant, Yocco's Hot Dogs, which continues to operate four store locations in Allentown and its suburbs.[3] He was said to have been christened with the unusual name "Lido" because he was conceived during his parents' honeymoon in the Lido district in Venice. However, he denied this rumor in his autobiography, saying that is romantic but not true; his father went to Lido long before his marriage and was traveling with his future wife's brother.[4] Iacocca graduated with honors from Allen High School in Allentown in 1942. He attended Lehigh University in neighboring Bethlehem, Pennsylvania, where he graduated with a degree in industrial engineering.[2] At Lehigh University, he was a member of Tau Beta Pi, the engineering honor society, and Theta Chi fraternity. After graduating from Lehigh, he won the Wallace Memorial Fellowship and went to Princeton University, where he earned a master's degree in mechanical engineering in 1946.[5] Iacocca then began his career at the Ford Motor Company, working at first as a Ford engineer. Iacocca joined Ford Motor Company in August 1946. After a brief stint in engineering, he asked to be moved to sales and marketing, where his career flourished. While working in the Philadelphia district as assistant sales manager, Iacocca gained national recognition with his "56 for '56" campaign, offering loans on 1956 model year cars with a 20% down payment and $56 in monthly payments for three years.[6] His campaign went national, and Iacocca was called to the Dearborn headquarters, where he quickly moved up through the ranks. On November 10, 1960, Iacocca was named vice-president and general manager of the Ford Division; in January 1965 Ford's vice-president, car and truck group; in 1967, executive vice-president; and president on December 10, 1970. Iacocca participated in the design of several successful Ford automobiles, most notably the Ford Mustang, the Continental Mark III, the Ford Escort and the revival of the Mercury brand in the late 1960s, including the introduction of the Mercury Cougar and Mercury Marquis. He promoted other ideas that did not reach the marketplace as Ford products. These included cars ultimately introduced by Chrysler – the K car and the minivan. Iacocca also convinced company boss Henry Ford II to return to racing, claiming several wins at the Indianapolis 500, NASCAR and the 24 Hours of Le Mans.[7] Eventually, he became the president of the Ford Motor Company, but he clashed with Henry Ford II. He was fired on July 13, 1978, even though the company posted a $2 billion profit for the year.[8] Ford Pinto[edit source] Main article: Ford Pinto 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]