Autos: Step by Step

• Share

(2 of 2)

Looking back, Townsend says: "Chrysler had it all. It had the plants, the engineering, the money, the dealers, everything. But it all had to be put together." Chrysler's constantly improving slice of the U.S. auto market shows how well Townsend has put it together. The company's share of the market went up from 10.3% in 1962 to 18.4% during the first seven months of 1968. Profits soared from a meager $11 million on $2.1 billion sales in 1961 to last year's $200 million on $6.2 billion sales. That trend continued during the first half of 1968, when sales rose 29% over the same period last year and profits more than doubled. By the end of the year, Townsend expects to top $7 billion in sales and earn $280 million.

Townsend engineered Chrysler's comeback by combining novel marketing techniques with stability in product lines. An innovation, company-owned dealerships where there were none before, has paid off handsomely. Chrysler now has 512 dealers either leased or controlled by the company, and they account for some 27% of sales. Another innovation, the offer of a five-year or 50,000-mile warranty to customers, turned out to be one of the cleverest gimmicks in auto history. Insurance premiums to cover costs of repairs are, of course, included in the price that the buyer pays.

In the midst of the shoptalk in Atlanta last week, Townsend recalled: "My father taught me when you are down and out to shine your shoes and press your old suit, and put on your best appearance." Lynn Townsend had his shoes shined and his suit pressed, and his company, now far from being down and out, made a very impressive appearance.