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How the Grand Cherokee became a Jeep: Iacocca staged 'gunfight at the OK Corral'

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#1 ·
How the Grand Cherokee became a Jeep
How Iacocca staged 'gunfight at the OK Corral' after acquiring Jeep
June 19, 2016
AutoNews.com

The Last American CEO, a new book co-authored by ex-American Motors CEO Joe Cappy and former Ford and Chrysler public relations chief Jason Vines, describes Chrysler's acquisition of AMC from Renault in 1987 -- a momentous deal largely because then-Chrysler CEO Lee Iacocca got his hands on Jeep.

In this passage from the book, Vines and Cappy recall development of the ZJ model, a unibody design that became the first Grand Cherokee. But once the Jeep brand was part of Chrysler, the big question was whether the new SUV should be a Jeep or a Dodge.


When Chrysler CEO Lee Iacocca was asked why he wanted to buy American Motors he responded, "Jeep is the best known automotive brand name in the world" and, at the time, only the Coke brand had higher recognition than Jeep throughout the world.

After WWII, Kaiser Industries decided to enter the automotive business that was booming with consumers and returning servicemen starved for new vehicles. It looked like "easy pickings" to the successful shipbuilding industrialist Henry Kaiser, who teamed with an automotive executive, Joseph Frazer, to manufacture Kaiser-Frazer passenger cars until 1955 when the company subsequently found the capital requirements and the stiff competition too difficult to continue producing in the United States, it moved its operations to South America.

But, two years earlier in 1953, Kaiser purchased Willys-Overland, manufacturer of the Jeep line of utility vehicles for $60 million and changed its name to first, Willys Motors, and then ten years later to Kaiser-Jeep.

Chrysler CEO Lee Iacocca decided to stage a gunfight at the OK Corral. He requested both divisions -- Dodge and Jeep -- to prepare position papers. Joe Cappy, reporting to Ben Bidwell, would make the case for Jeep, while Ron Boltz, an incredibly bright product planner and Vice President reporting to Chrysler Vice-Chairman and product wunderkind Bob Lutz, would prepare the paper for Dodge. Cappy and his team, headed by Jim Julow put together the Jeep paper and had it blessed by Bidwell. Boltz and his team did the same for Dodge with Lutz's blessing.

Then, two wrinkles: Joe Cappy and Ron Boltz would present their positions to Iacocca and his Executive Committee in person and Iacocca announced a change in reporting at the top of the company that resulted in Cappy now reporting to Lutz.
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#2 · (Edited)
I really love these kinds of stories. Not just from a historical perspective, but also to see how some of the biggest successes (and biggest flops) are driven sheerly by personalities, and the relationships (and pissing matches) between executives.
 
#10 ·
Dodge had the Raider for a few years which was somewhat similar to the original 2 door S-10s and they eventually got the Durango. I don't see why a Grand Cherokee type model would have made that much of a difference.
 
#16 ·
The GC is still really good, despite its age. Looking forward to seeing the next Gen in a year or two!!

GMC should have a competitor, no doubt in my mind. #Envoy4GMC
 
#18 · (Edited)
Jeez, as a friend of Mr. Iacocca and the owner of a 2000 Mexican Ramcharger, I feel like I should have more to say here.

I'll try this... In August of 2001, I spoke to Mr. Iacocca and the subject of his Eaton > Lutz choice came up. At that time, he was near the end of a 5-year gag order that prevented being critical of Chrysler. He said (near verbatim) that selecting Bob Eaton was the biggest mistake he ever made. However, that was not an endorsement of Lutz. He was critical of Lutz for spending too much time on "basement projects", niche cars like the Viper which are great for image, but are not in the same league as a Minivan or a Grand Cherokee.

While I have an appreciation for guys like Lutz, I believe there is merit to Iacocca's reasoning. Much time at GM was spent in an attempt to resurrect Pontiac with niche cars like the GTO, then Solstice, then G8. It all amounted to nothing. The embrace of the Volt came late, and frankly I don't know how much of that I really believe. Yet I don't want to discount Lutz's influence on improving GM in general... I just don't think he was CEO material and I don't like when the uninformed speculate about Iacocca's ego getting in the way of a Lutz promotion. I'd never deny he had an ego, but I do believe he could be "won over" and would change his mind once a strong case was made to the contrary.

The oft forgotten pick to succeed Iacocca might have been Jerry York (as CEO) running day-to-day financials (although a financial whiz, he began his career as a Mechanical Engineer) with Lutz running product development and Francois Castaing developing powertrains.

Now I'll go read the article and pass the link along to Mr. Iacocca.
 
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