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The Iacocca Plan For International Auto Shipping

Aug 9, 2008
Lee Iacocca was the president of the Chrysler Corporation in the 1970's and before that he worked for Ford Motor Company. He is widely credited with having saved the American automobile industry from extinction due to foreign competition.

His development of the K-car was the first attempt by any company to make an automobile that was both economical on gas and comfortable to drive. Many of the K-car models are still on the road today and the technology that went into them has helped to change the way that automobile manufacturers build cars.

During his term at Chrysler, the automotive industry throughout the world was using international auto shipping companies to send whole vehicles by truck and then boat to other countries in the world. Massive cargo ships were coming into port along both coasts of America, in Europe and in Asia. The international auto shipping costs were enormous and Iacocca put his brain to work trying to figure out a solution.

International auto shipping companies charge by weight and customs officials charge a tax for the import of an automobile. The cargo ships that were coming in and going out were carrying thousands of automobiles which automobile manufacturers and consumers were paying millions of dollars in taxes for. It was only when a car was manufactured and sold in a single nation that these taxes could be avoided.

Iacocca's idea was to manufacture the parts of the automobile in different places and assemble it in the United States for sale to the consumer. This would save on the cost of international auto shipping and the import taxes.

Another benefit to the Iacocca plan was that it would enable American automobile manufacturers to take advantage of some of the better technology that was being offered in Europe and Asia. Ford, Chevrolet, and even the members of the board of Chrysler scoffed at the idea and Iacocca retired without ever having put his plan in place.

International auto shipping today is almost exactly like Iacocca proposed that it should be. The automobile companies of his age were not ready for a global car company and the American public would not have accepted it. Today international auto shipping is more like auto parts shipping.

The computer components come from Asia, the motors from Germany and the bodies are manufactured in Detroit. The days of American muscle cars have been replaced by the Japanese economy car and even many of those are actually assembled here in the United States.

Iacocca was a genius and his books on business philosophy have been on the best seller list since they were written. His ideas about international auto shipping were right on. They were just a little ahead of their time. The world today has embraced the idea of global markets and many automobile manufacturers work together to produce automobiles that are faster, more fuel efficient and more comfortable than their predecessors were.

Technology has made possible what was once the dream of a single man. Thank you, Lee.
About the Author
Nir Dotan is a writer and promoter of
International Auto Shipping
services, and
Auto Shipping
Local as well as International Moving.
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