Former Chrysler CEO Lee Iacocca dies

DETROIT -- Lee Iacocca, the auto executive and master pitchman who put the Mustang in Ford's lineup in the 1960s and became a corporate folk hero when he resurrected Chrysler 20 years later, has died in Bel Air, California. He was 94.

Two former Chrysler executives who worked with him, Bud Liebler, the company's former spokesman, and Bob Lutz, formerly its head of product development, said they were told of the death Tuesday by a close associate of Iacocca's family.

In his 32-year career at Ford and then Chrysler, Iacocca helped launch some of Detroit's best-selling and most significant vehicles, including the minivan, the Chrysler K-cars and the Ford Escort. He also spoke out against what he considered unfair trade practices by Japanese automakers.

The son of Italian immigrants, Iacocca reached a level of celebrity matched by few auto moguls. During the peak of his popularity in the 1980s, he was famous for his TV ads and catchy tagline: "If you can find a better car, buy it!" He wrote two best-selling books and was courted as a potential presidential candidate.

But he will be best remembered as the blunt-talking, cigar-chomping Chrysler chief who helped engineer a great corporate turnaround.

In 1979, Chrysler was floundering in $5 billion of debt. It had a bloated manufacturing system turning out gas-guzzlers the public didn't want.

When the banks turned him down, Iacocca and the United Auto Workers union helped persuade the government to approve $1.5 billion in loan guarantees keeping the No. 3 domestic automaker afloat.

The boxy K-cars -- the Dodge Aries and Plymouth Reliant -- were bland, basic transportation. But they were affordable, fuel-efficient and had room for six. In 1981, they captured 20% of the market for compact cars. In 1983, Chrysler paid back its government loans, with interest, seven years early.

The following year, Iacocca introduced the minivan and created a new market that helped the company reach new heights of profitability.