Originally Posted by TheCarConnection

Iacocca Back in Chrysler Commercials
All is forgiven for company’s long-time CEO and chief salesman.
by Paul A. Eisenstein (2005-07-05)

There was a time when the names Chrysler and Lee Iacocca were virtually synonymous. That may happen again. After a very bitter public feud stirred up by the former CEO's participation in a hostile takeover bid, Chrysler is welcoming its old leader back and putting him out front of a new marketing campaign.

On Wednesday, DaimlerChrysler's U.S. subsidiary unveiled its "Employee Pricing Plus" program. The effort was modeled after the highly-successful "Employee Pricing for Everyone" campaign, which sent General Motors' June sales soaring by 46 percent, with its market share hitting a decade-high 33 percent.

"It's much better to ride the wave than swim against it," said Chrysler's Global Vice President of Sales, George Murphy.

Chrysler's announcement came little more than a day after GM revealed plans to extend its own discount program, and Ford Motor Co. weighed in with its "Ford Family Pricing Plan." At their heart, all three programs allow consumers to buy most vehicles at the same price as corporate employees. A select number of hot products are excluded, such as GM's Chevrolet Corvette, Ford's Mustang and Chrysler's 300C.

But while Chrysler "needed to play in the game," Murphy said that as the last to announce its program, the automaker also needed to find a way to stand out.

To sweeten the incentive, Chrysler's "Plus" adds on rebates of up to $3500. On a vehicle like the Dodge Durango, that can bring the value of the new package up to nearly $9000, according to company officials, though on some models, total savings may actually be less than in previous months.

To get its message across, Chrysler turned to the man credited with saving the company. When Iacocca joined the automaker, a quarter-century ago, Chrysler was fading fast. Behind the scenes, he lobbied Congress for a federal bail-out, while taking to TV as spokesman for the company's products. He won over both lawmakers and consumers, and by the mid-1980s, Chrysler turned itself around.

There were some hiccups later in the decade, but when the son of Italian immigrants finally retired in December 1992, Chrysler was considered the leanest and most creative of America 's Big Three automakers.

Behind the scenes, Iacocca had a falling out with his hand-chosen successor, Bob Eaton, and in April 1994, he signed on with Las Vegas billionaire Kirk Kerkorian, in a multi-billion-dollar buyout bid. The hostile deal soon fell apart, and Chrysler initially withheld millions in benefits due its former chairman, while also abandoning plans to name the new corporate headquarters after Iacocca.

So the decision to reach out to the octogenarian executive came as a major surprise.

"We're all business people and we all move on with our lives," said Jason Vines, Chrysler vice president of corporate affairs, and the man who made the call to Iaccoca last Friday. The former chairman didn't hide his interest, and the two sides began negotiating the deal over the long Independence Day weekend, Chrysler offering to compensate Iacocca by donating money to the fund he has created for diabetes research. His first wife died of the disease.

Iacocca taped his spots on Tuesday, July 5th, and the entire package was edited down by 4 AM the next morning. Barring some last-minute legal snags, the former CEO should be seen on national television, in print and on the Internet barking out Chrysler's praises within a matter of days. But in a humorous twist, Iacocca's famous tagline, "If you find a better car, buy it," will be delivered by his on-air colleague, comedian Jason Alexander, formerly of the Seinfeld TV series.

During his tenure, Iacocca was considered one of the most successful on-air pitchmen the auto industry had. Whether, at 81, he can still connect with today's young buyers remains to be seen, buy Chrysler marketing officials said their research found that Iacocca remains a well-known and respected quantity.

Another question is just how successful the company's new Plus campaign will be, now that each of the Big Three has an employee-style discount program in place. Market share, said Murphy, will be "the measure of success."

Maybe for Chrysler, but industry analysts have other concerns. "For anyone thinking about buying in the next 12 months, with these kind of deals, they'll be likely to move now," said Joe Phillippi, of AutoTrends, Consulting, in Short Hills, N.J. And that could mean a sharp "payback" period, he warned later in the year when Big Three discounts roll back.

There's no question that incentives are running at record levels. With the first round of its Employee Prices for Everyone program, each GM vehicle carried a $4,458 giveback, according to the research firm, Autodata.

But while analysts estimate GM increased its incentives by up to $450 a vehicle, Murphy insisted Chrysler's givebacks should average just $100 over June incentives.

When Chrysler launched the industry's first serious rebate program, in 1975, it was giving away just $50 to lure in buyers. Yet even then, Iacocca dubbed the deals "dope," quickly recognizing the potential risk of conditioning consumers to expect cash back.

He was right, said analyst Phillippi, lamenting that "I don't know how (the Big Three) will ever get back to rational pricing."

Originally Posted by redzed

I would think that Iacocca carries too much "baggage" from Chrysler's terrible K-car years.

Originally Posted by falchulk

Damn!! The chrysler program does not include the magnum and charger. I knew it would not have the 300 but come on now!

Originally Posted by falchulk

Damn!! The chrysler program does not include the magnum and charger. I knew it would not have the 300 but come on now!

Originally Posted by redzed

Should Chrysler have brought back Iaccoca as an advertising pitch man?

I would think that Iacocca carries too much "baggage" from Chrysler's terrible K-car years.