In 1934 the Airflow was launched, its striking appearance inspired by fighter plan manoeuvres. It lived up to that billing, setting speed records on Utah's salt flats, but sold poorly.
At this time technical innovations helped keep the company afloat. Among these was Fluid Drive, a forerunner to automatic transmission.
Walter Chrysler died in 1940, the same year as his company's luxury Town and Country brand was launched.
From 1942 car production was halted, with Chrysler concentrating its efforts on producing everything from tanks, aircraft engines and anti-aircraft guns.
Post-war, Chrysler again stood out for technical innovations that included air-cooled brakes, the Hemi V8 engine, a dashboard mounted record player and Hydraglide, a pioneering power steering system.
The oil crisis in the late 1970s resulted in a slump in car sales, and Chrysler received $1.5bn (£1 billion today) of loan guarantees from the US government to save it from collapse.
In late 1983, Chrysler launched the pioneering Dodge Caravan, and its sister the Plymouth Voyager, bringing the concept of the modern MPV to the US market for the first time, and even beating the Renault Espace to market.
In the early 1990s, under the creative leadership of product guru Bob Lutz, Chrysler experienced a flurry of creativity. In the period of a few short years, it launched the Dodge Viper and Plymouth Prowler sports cars, and brought a distinctive 'cab-forward' design language to its everyday saloon range.
Chrysler continued to grow, and by 1998 it was part of the German based DaimlerChrysler (now Daimler AG) group.
Under DaimlerChrysler, the company was named "DaimlerChrysler Motors Company LLC", with its US operations generally referred to as the "Chrysler Group".
On 14 May, 2007 DaimlerChrysler AG announced the sale of 80.1 per cent of Chrysler Group to American private equity firm Cerberus Capital Management, although Daimler continued to hold a 19.9 per cent stake until earlier this week. The company then became known as Chrysler LLC.
In recent months Chrysler has survived on US government bailouts, and had been given until the end of April by the Obama administration to prove it is a viable business or apply for Chapter 11 bankruptcy protection.