The Death of DeSoto and the Decline of the American Auto Industry

On November 30, 1960, the Chrysler Corporation closed the DeSoto division in a move to cut its losses in the face of a downward trend in the "middle price" car market.  That trend was caused by the recession of 1958 and its effects on Chrysler's competitors were equally severe.  This story has a great lesson in how capitalism is supposed to work, and when juxtaposed to the bailouts by the government to save failing GM and Chrysler, reveals how today's US Government lost billions of taxpayers' dollars to delay the inevitable further closure of American auto makers.  Thanks to the uncovering of a long stored work by the National DeSoto Club from their November 1990 newsletter, we can review how Chrysler handled their dealers back then, and how they intended to smooth the transition to a leaner company.  Thanks to Greg J. Walters who wrote the article I source here and reproduced the "Flip Chart" Chrysler sent out to its DeSoto dealers in regards to the closing of...(Read Full Article)