Background
In mid-1970s, the British automotive industry was in crisis, marred by frequent strikes and decreasing competitiveness compared to the increasingly successful Japanese automakers. It took its toll on Chrysler UK, which was the name given to the former Rootes Group after its takeover by the USA-based Chrysler Corporation. In particular, the Linwood facility was generating losses due to many reasons, including underutilized capacity.
In 1975, the famous Ryder Report led to the effective nationalization of Chrysler UK's major competitor, British Leyland. Chrysler management decided that the company should therefore also benefit from state aid, and pressed the government for it by threatening to close the UK operations. The government agreed to a state grant reported at GBP 55 Million to fund the development of a small car, to be developed in Chrysler's UK facilities and manufactured in Linwood.
Read more about this topic: Chrysler Sunbeam
Famous quotes containing the word background:
“... every experience in life enriches one’s background and should teach valuable lessons.”
—Mary Barnett Gilson (1877–?)
“They were more than hostile. In the first place, I was a south Georgian and I was looked upon as a fiscal conservative, and the Atlanta newspapers quite erroneously, because they didn’t know anything about me or my background here in Plains, decided that I was also a racial conservative.”
—Jimmy Carter (James Earl Carter, Jr.)
“In the true sense one’s native land, with its background of tradition, early impressions, reminiscences and other things dear to one, is not enough to make sensitive human beings feel at home.”
—Emma Goldman (1869–1940)