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Ex-Chrysler boss to lose pension
29 May 2009
Lee Iacocca, the former boss of Chrysler credited with saving the car company from bankruptcy in the 1980s, could lose his company car and pension as part of Chrysler’s Chapter 11 proceedings.
The 84-year-old’s Chrysler pension and company car allowance would no longer have to be honoured after the creation of a ‘New Chrysler’, as it is part of an unsecured pension fund.
Ordinarily, unsecured creditors are paid after secured creditors in US bankruptcy proceedings, but since secured creditors of Chrysler are unlikely to entirely recover their investments, Iacocca’s pension looks shaky.
As well as being lauded for his turnaround of the Chrysler Corporation, Iacocca was also responsible for bringing the Jeep brand to the Chrysler fold and appeared in a series of TV adverts in the 1980s featuring the phrase, “if you can find a better car, buy it”.
Matt Rigby
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