The Chrysler company was founded by Walter Percy Chrysler on June 6, 1925, In 1928 Chrysler founded the Plymouth brand the DeSoto brand and purchased the Dodge Brothers car company; all of this was in order to set up a full range of brands similar to that of the General Motors corporation. This process reached its logical conclusion in 1955, when the Imperial was made a brand of its own and Chrysler marketed a GM-like five-brand lineup. Well before then, though, Chrysler Corporation had become noted both for its engineering features and its periodic financial crises. By the end of the 1930s, the DeSoto and Dodge divisions would flip-flop spots in the corporate pecking order making the lineup Plymouth, Dodge, DeSoto, Chrysler, and Imperial.

It was during the 1930's that the company created a formal parts division under the '''Mopar''' ('''Mo'''tor '''Par'''ts) brand, with the result that Chrysler products are still often called Mopars. In 1951 the firm introduced the first of a long and famous series of Hemi V8s. In 1955, things brightened after the questionable designs of the 1953 and 1954 Chryslers with the introduction of Virgil Exner's successful ''Forward Look'' style. the 1956 Plymouth Fury and the 1957 Chrysler 300C. With the inauguration of the second generation Forward Look cars for 1957, Torshion-Aire was introduced. This was not air suspension, but an indirect-acting-torsion-spring suspension system which drastically reduced unsprung weight and shifted the car's center of gravity downward and rearward, resulting in both a smoother ride and significantly improved handling.

In 1960, Chrysler introduced unibody construction in its cars, the first to offer it of the Big Three, across the board, excepting the Imperial. This gave the body more rigidity and less rattles and would soon become an industry standard. Its new compact line, the Valiant, opened strong and continued to gain market share for well over a decade. Valiant was introduced as a division of its own but would become adopted by Plymouth in 1961. Alternators would replace generators in the 1960 Valiant and then all of the 1961 models as standard equipment, an industry first.

In 1963, the company started using a logo known as the '''Pentastar''' and was extensively used on dealer signage, advertisements, and promotional brochures. Contrary to popular belief, it was not designed to symbolize the five divisions of the corporation at the time, Plymouth, Dodge, De Soto, Chrysler, and Imperial. By 1963 there were two car divisions in the United States, Chrysler-Plymouth and Dodge.

In April 1964, the Plymouth Barracuda was introduced. The huge glass rear window gave the impression of a hatchback with its "love-it-or-hate-it" styling. Beating the Ford Mustang to the market by almost two weeks, it could be argued that the Barracuda was really the first pony car. However, unlike the Mustang, it did not rob sales of other division's models. In spite of better build quality than the Mustang, the Mustang still outsold the Barracuda 10-to-1 between April 1964 and August 1965.

More successfully, at this same time the company helped create the muscle car market in the U.S., first by producing a street version of its Hemi racing engine and then by introducing a legendary string of affordable but high-performance vehicles such as the Plymouth GTX, Plymouth Road Runner, and Dodge Charger. The racing success of several of these models on the NASCAR circuit burnished the company's reputation for engineering.

The 1970s brought both success and crisis. The aging but stalwart compacts saw a rush of sales as demand for smaller cars crested after the first gas crisis of 1973. However, an expensive investment in an all-new full-size lineup went largely to waste as the new 1974 vehicles appeared almost precisely as gasoline prices reached a peak and large-car sales collapsed. At mid-decade, the company scored a conspicuous success with its first entry in the personal luxury car market, the Chrysler Cordoba. However, the introduction of the Dodge Aspen/Plymouth Volare twins in 1976 did not repeat the success of the discontinued Valiant/Dodge Dart line, and the company had delayed in producing an entry in the now all-important subcompact market.

The Chrysler Corporation on September 7, 1979 petitioned the United States government for US$1 billion in loans to avoid bankruptcy. At the same time, Lee Iacocca, a former Ford executive, was brought in to take the position of CEO, and proved a capable public spokesman for the firm. A somewhat reluctant Congress authorized the guarantees, prodded by Chrysler workers and dealers in every congressional district who feared the loss of their livelihoods. With such help and a few innovative cars (such as the K-car platform), especially the invention of the minivan concept, a market where Chrysler brands are still important, Chrysler avoided bankruptcy and slowly fought its way back up. By the early 1980s, the loans were being repaid at a brisk pace and new models based on the K-car platform were selling well. A joint venture with Mitsubishi called Diamond Star Motors strengthened the company's hand in the small-car market. The acquisition of AMC by Chrysler in 1987, mostly for its Jeep brand, bolstered the firm further, although Chrysler was still the weakest of the Big Three American auto makers.

Currently the only remaining traces the old Chrysler are a large, star-shaped window at DaimlerChrysler's American headquarters in Auburn Hills, Michigan, and '''Pentastar Aviation''', a former DaimlerChrysler subsidiary which reverted to its original name after being purchased, ironically, by a member of the Ford family. It is also likely that many dealerships still have signage and other traces still visually apparent to the Pentastar. Today, glass on Chrysler Group cars and trucks still have the Pentastar on them.
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