Fiat Chrysler Australia

Chrysler Australia Ltd
Company type	Subsidiary
Industry	Automotive
Predecessor	Chrysler Dodge Distributors (Holdings) Pty Ltd
Founded	June 1951; 75 years ago
Headquarters	Adelaide, Australia
Products	Automobiles, trucks, aircraft components

Establishment

Chrysler Australia Ltd came into existence in June 1951 when the Chrysler Corporation purchased Chrysler Dodge Distributors (Holdings) Pty Ltd, which had originally been founded in 1935 by a coalition of 18 independent distributors.

Throughout the 1950s and 1960s, Chrysler made significant investments in manufacturing within Australia, streamlining assembly operations primarily in Adelaide. From 1953 onwards, production for Victoria, Tasmania, and New South Wales was centralized there, while assembly plants in Perth and Brisbane were closed by 1954. Component manufacturing occurred at Finsbury, with parts then shipped to Keswick for final assembly. Additionally, Chrysler operated an aircraft division responsible for producing components used in military aircraft. To support this expansion, the company actively recruited workers both locally and from other states.

Initially, Chrysler Australia focused on assembling North American Chrysler automobiles and trucks. The most successful models during the 1950s were badge-engineered derivatives of the 1954 US Plymouth, including the Plymouth Cranbrook, Dodge Kingsway, and De Soto Diplomat. A coupe utility version was offered across nine different variants within these marques. The Plymouth sedan gained popularity as a taxi; however, growing competition from Holden resulted in a decline in sales.

In 1957, Chrysler merged these marques into the Chrysler Royal, a redesigned version of the 1954 Plymouth that remained in production until 1963. Despite enhancements such as power steering, automatic transmissions, and updated styling, it failed to overcome General Motors-Holden’s strong market presence and was eventually discontinued.

The range broadened with the addition of the French Simca Aronde, which was assembled from CKD kits at Forestville. A distinctive Aronde station wagon variant was developed locally. This was made possible after Chrysler acquired a stake in Simca in 1958. Assembly of Simca vehicles commenced on 1 July 1959.

Between 1958 and 1959, Chrysler introduced US-imported models like the Plymouth Belvedere, Dodge Custom Royal, and DeSoto Firesweep, all assembled at Adelaide facilities. These models featured V8 engines but were replaced by the single model Dodge Phoenix in 1960, which remained in production until 1973.

In 1964, Chrysler inaugurated the Tonsley Park assembly plant located in Adelaide’s Clovelly Park suburb and established an engine manufacturing facility at Lonsdale in 1967. These new sites supplanted earlier operations at Keswick, Mile End, and Finsbury. By this time, Chrysler Australia had secured its position as the third-largest automotive manufacturer in Australia after General Motors-Holden and Ford Australia.

1960s

Beginning in 1962, Chrysler Australia commenced assembly of the American Plymouth Valiant, marketed locally as the Valiant by Chrysler. By 1963, a uniquely Australian version called the AP5 Valiant was developed with distinct styling to set it apart from US Plymouth and Dodge models. This strategy helped avoid the perception of selling outdated vehicles.

During the 1960s, the Valiant lineup expanded to include two-door hardtops, extended wheelbase VIP editions, and sportier Pacer models.

In 1966, following Chrysler USA’s acquisition of the British Rootes Group, Chrysler Australia assumed control over Rootes Australia along with its Port Melbourne manufacturing plant. The Hillman Hunter became Rootes’ primary model sold domestically, sustaining consistent sales up to 1973.

1970s

In 1970, Chrysler Australia introduced the distinctive "Hemi" inline six-cylinder engine, which had the endorsement of Stirling Moss. This powerplant became the most potent six-cylinder engine produced in Australia, distinguished by its triple Weber carburettors. Although it was derived from an American truck engine design, it was never manufactured in North America.

Despite the Valiant achieving respectable sales figures, it never reached the dominant market position held by rivals Holden and the Falcon.

The 1971 Valiant VH model featured a considerably wider body and debuted the celebrated Valiant Charger, a sporty two-door hardtop with a short wheelbase and an integrated rear spoiler. The base Charger was priced at approximately A$2750, with performance-oriented and luxury variants available at higher price points.

In 1971, the Charger earned "Wheels" magazine’s Car of the Year accolade and achieved notable sales success by tapping into public enthusiasm comparable to that experienced by the Ford Mustang in the United States.

By the mid-1970s, Valiant sales had declined due to several factors:

The 1973 oil crisis increased demand for smaller, fuel-efficient four-cylinder vehicles;
Growing competition from Japanese automakers specializing in compact cars;
The perception that the Valiant was becoming outdated despite facelifts implemented in 1971, 1973, and 1975. A substantial facelift in 1976 helped stabilize sales until 1981.

In 1975, Chrysler released the Chrysler Centura, available with either 2-litre four-cylinder or 3.5- and 4-litre six-cylinder engines across XL and GL trim levels. This model aimed to compete with medium-sized cars such as the Holden Torana and Ford Cortina.

The 'KB' Centura was based on the European Chrysler 180 (introduced in Europe in 1970), featuring updated front and rear styling inspired by a proposed but never launched Chrysler Sunbeam design.

Its introduction was delayed because of embargoes on French imports linked to France's nuclear testing in the Pacific, which disrupted parts availability.

By the time it reached Australian showrooms, its design appeared outdated, limiting its success. A minor update known as 'KC' was released in 1977 with GL and GLX trims; however, the model quietly exited the market by late 1978.

Relationship with Mitsubishi Motors Australia

Following Mitsubishi Motors Corporation’s acquisition of a 15% stake in Chrysler Australia in 1971, Chrysler’s parent company began collaborating closely with Mitsubishi. This partnership led to Chrysler Australia manufacturing the Mitsubishi-designed Chrysler Valiant Galant. Additionally, it resulted in the launch of the successful 1977 Chrysler Sigma, which featured four-cylinder "Silent Shaft" engines, competitive pricing, and a premium "SE" variant offering optional leather upholstery—an innovation at that time. The Sigma rapidly became a leading contender within its market segment.

In 1979, Mitsubishi Motors Corporation and Mitsubishi Corporation each acquired one-sixth ownership of Chrysler Australia. By April 1980, they purchased all remaining shares from US-based Chrysler Corporation, which was then undergoing bailout negotiations. On 1 October 1980, the company was renamed Mitsubishi Motors Australia Limited. Mitsubishi continued producing Valiant models under Chrysler branding until August 1981 and maintained Sigma production under its own name until 1987. Subsequent models included the Colt, Magna, Verada, and 380, before passenger vehicle manufacturing ended in March 2008. The company remains an important importer of road vehicles within Australia.

Chrysler's Re-entry into the Australian Market

Chrysler made its return to the Australian automotive scene in 1994, beginning with the importation of the Jeep Cherokee. The lineup later grew to incorporate models such as the Chrysler Neon (which ceased production in 2002), Grand Cherokee, Jeep Commander, PT Cruiser, Crossfire, 300C, Voyager, and Dodge Caliber. While some early Jeep vehicles faced quality challenges, they were appreciated for their cost-effectiveness.

Throughout the 2000s, Chrysler sourced vehicles from manufacturing plants in the United States, Canada, Mexico, and Austria. The Chrysler 300C established itself as a distinctive option competing against premium Australian sedans such as the Holden Statesman/Caprice and Ford Fairlane/LTD.

In 2012, Chrysler Australia expanded its portfolio by taking over distribution responsibilities for Alfa Romeo, Fiat, and Fiat Commercial brands. The following year saw the introduction of the RAM brand into the Australian market, with vehicle modifications carried out by ASV at the former Holden Special Vehicles factory located in Clayton, Victoria.

On 19 November 2021, Chrysler officially exited the Australian market after discontinuing its last remaining model, the Chrysler 300.

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