September 7, 1979: The First Chrysler “Bailout”
In the early 1980s, the Dodges Aries-K inspired Chrysler’s renaissance.
In 1979, Chrysler was at death’s door and petitioned the U.S. government for $1.5 billion in loan guarantees to avoid bankruptcy. It made gas guzzlers that nobody wanted to buy and it asked for $1.5 billion to keep itself going until a fleet of more fuel efficient cars could take up the sales slack. It was by far the largest government bailout in US history. On September 7, 1979 Chrysler formally petitioned the U.S. government for the loans, and on December 20, 1979 Congress ratified the appropriation in the “Chrysler Corporation Loan Guarantee Act,” which President Carter subsequently signed into law. It was an extremely painful period for Chrysler, but Reed Brothers survived the first Chrysler Bailout and resurgence under Lee Iacocca.
The K-Cars, the Dodge Aries and Plymouth Reliant, were, quite literally, the cars that saved Chrysler from the abyss in 1980. Their only real savior other than the K-Car was a government bailout. Though it came after bankruptcy, they managed to save the company with it by 1983. The K-Cars were inexpensive, reliable, and they delivered economical transportation for 6 people at an affordable price. Sales from the K-Car enabled Chrysler to emerge from bankruptcy and evolve into a profitable company.
Reeling from the combined effects of a recession and a global energy crisis, in 1979 Chrysler was forced to seek government loan guarantees. Meanwhile, Chrysler chairman Lee Iacocca took the company’s case straight to the people in a series of television commercials. Looking straight into the camera, the legendary auto executive pitched the company’s new K-cars with total conviction, asserting, “America, if you can find a better car, buy it.”
Buyers took up Iacocca’s challenge, flocking to the showrooms to buy their own K-cars. Nearly one million Aries were sold (and another million Reliants), allowing Chrysler to pay off its loans a full seven years early. Soon Iacocca was back on the airwaves with another ad campaign. This one was called “The Pride Is Back.”
These models were soon followed by what would become a home run product for Chrysler: minivans.
Nearly thirty years later, in 2008, Chrysler would receive billions in a new bailout from the U.S. government in the aftermath of the financial crisis that decimated automotive sales over the following few years. In 2009, Chrysler files for Chapter 11 bankruptcy protection. On May 14, 2009, Chrysler left 789 dealerships, about a quarter of its dealer base, out in the cold by rejecting their franchise agreements and giving them about a month to sell all their remaining new cars, factory parts and service equipment.
Whether a franchise is run by a second- or third-generation dealer, or is older than even Chrysler itself, didn’t seem to matter when Chrysler decided to cut dealerships ranks during their 2009 bankruptcy process. After almost 95 years selling Dodges, Reed Brothers was one of the 15 dealerships in Maryland and 789 dealerships nationwide notified by Chrysler that their franchise agreement would not be renewed. Chrysler was acquired in total by Fiat in 2014.
Source: Chrysler
8 Years, 353 Posts & Thank You
This month marks the 8-year anniversary of this blog. It’s been an honor to share the history of Reed Brothers Dodge – whether you’ve read our blog, followed us on Twitter, or “liked” us on Facebook. I would like to thank all of you who have visited, followed, shared, or commented on this blog, and many others, for their kind words and the visibility they have provided.
Here’s a look back at the last year.
What People are Saying Around Facebook:
“Amazing blog and postings. I spent sometime reviewing your site and found it both fascinating and interesting.”
“I am thankful for the documentation this site provides with images of a beloved hometown that can no longer be seen.”
“Love seeing the old photos.”
“This is soooo cool! Someone needs to do one of those historical books of Historical Rockville photos!”
“These photos are absolutely awesome!!!”
“Thank you so much for sharing! This is classic Montgomery County info.”
“That was so cool reading all your memory posts. Best thing I’ve read on FB in a while.”
“I love seeing these old photos and reading the history. Thank you.”
“Thank you for this history. There is so much we take for granted.”
Past Lectures:
2019 Montgomery County History Conference: Each year in January, the Montgomery County Historical Society holds a day-long conference on various aspects of local history. Upwards of 200 people attend this annual event, which has been held since 2007. Last year, I was very honored for the invitation to speak about the history of Reed Brothers Dodge at the Montgomery County History Conference on Saturday, January 26, 2019.
The PowerPoint presentation followed the dealerships 97-year historic timeline and included more than 100 photographs, 70 of them rare, historic images taken by the dealership’s founder, Lewis Reed. The conference was held at the Bioscience Education Center on Montgomery College’s Germantown Campus.
Montgomery History Speakers Bureau: Officially added to the Montgomery History Speakers Bureau. My topic is, of course, “The History of Reed Brothers Dodge“. It is my great honor to join the talented league of speakers at Montgomery History, and I sincerely look forward to sharing our 97-year family business history throughout Montgomery County and the greater Washington D.C. metro area.
Kensington Park Retirement Community Talk: Gave a presentation as part of Montgomery History’s Speakers Bureau at Kensington Park Retirement Community. Approximately 25 residents from the Woodlands Assisted Living facility attended. Such a joy me sharing, their listening, and appreciating the time spent together. Thanks to Activities Director Kate Moeller who invited me to speak.
Kensington Park Woodlands Assisted Living
Montgomery History Tuesday Talks: Montgomery History’s lunchtime lecture series, Tuesday Talks, takes place at noon on the first Tuesday of every month at the historic Beall-Dawson House in Rockville, Maryland. Enjoy presentations covering various aspects of history including local history of Montgomery County and the history of those who once lived here.
Online Exhibit: Montgomery County, 1900-1930: Through the Lens of Lewis Reed Lewis Reed’s photographs are now a part of a series of online exhibitions featured on the Montgomery History website. Montgomery County, 1900-1930: Through the Lens of Lewis Reed displays extraordinary photographs in several themed categories (Transportation, Photo-magic, Recreation, & Daily Life) taken at the beginning of the 20th century by county native and founder of Reed Brothers Dodge, Lewis Reed. It is an absolutely unique window into how the people of Montgomery County lived over a century ago. Working in collaboration with Montgomery History Librarian and Archivist, Sarah Hedlund, I am proud to play a part in the preservation of local history, making these photographs available to all.
I appreciate all of you for your continued support and making Reed Brothers Dodge History one of the places you visit during the course of your day.
Then & Now: Rockville Garage 102 Years Ago
Reed Brothers Dodge and the surrounding area sure has changed a lot in its almost century-long history. You might not realize how much things have changed until you look back and see what it looked like in the past. For this post, I have used one of Lewis Reed’s original photographs for “then” and a Google Maps street view image from today for “now”.
1918 two-story addition to original Rockville Garage. View from side on Rockville Pike.
Rockville Garage (Reed Brothers Dodge) original location at the triangle today. Google Image Capture, 2019
49 Years Ago Today: 55th Anniversary and Grand Opening
Today marks 49 years since the Grand Opening of Reed Brothers Dodge new showroom and service facility. When the state widened the roads in 1970, Lee Gartner purchased 4.37 acres of land from Eugene Casey and relocated Reed Brothers Dodge to a new state-of-the-art showroom and Dodge/Chrysler/Jeep service complex on Route 355 at 15955 Frederick Road in Rockville Maryland.
Turning out to honor the company were several hundred dignitaries, officials, businessmen and friends. The new building, a complete automotive sales and service facility marked Reed Brothers 55th year of selling Dodge’s. The state-of-the-art dealership contained the newest customer-focused features throughout which combined technology and comfort.
The new dealership provided a modern new vehicle showroom, 30 service bays, a comprehensive detail and car wash area, Parts Department, Body Shop, the newest technologies to service customer’s vehicles and provided customers with a convenient location to purchase and service their vehicle needs.
Design and construction of the new dealership was managed by the Glen Construction Company.
Happy Birthday to Lewis Reed, Founder of Reed Brothers Dodge
This ca. 1965 photo of Lewis Reed was taken in the new car showroom at Reed Brothers Dodge original location at the triangle at Veirs Mill Road and Rockville Pike.
Lewis Reed was born in Darnestown, Maryland on November 25, 1887 and was the founder of Reed Brothers Dodge. When Lewis Reed opened his car dealership in October 1915, he never knew he was starting a family tradition that would be carried out for 97 years and three generations. He founded what would become the oldest Dodge dealership under the same family ownership in the state of Maryland, and one of the oldest in the entire nation.
Lewis Reed was just 27 years old when he started selling cars built by brothers Horace and John Dodge in Detroit. Few people jumped onto the Dodge Brothers bandwagon earlier than Lewis Reed, and not many have lasted longer. Reed Brothers was franchised as a Dodge dealership and service facility less than one year after the first Dodge automobile rolled off the assembly line.
Lewis Reed was the first to sell Dodge cars in Montgomery County, Maryland and his company was the first Gulf gas dealer in the Washington, D.C. area. During the early years, Reed Brothers represented several franchise nameplates along with Dodge, including Oldsmobile, Hudson and Essex. The Hudson and Oldsmobile were sold at Reed Brothers from roughly 1917 through 1923.
Before becoming interested in automobiles, Lewis Reed was one of the original employees of the Computing-Tabulating-Recording Company, a Georgetown-based manufacturing firm that eventually became International Business Machines, Inc. He received his automotive training at the Pierce-Arrow factory in Buffalo, New York, the Dodge Hamtramck and Hudson Motor Car factories in Detroit, Michigan and the Washington Auto College.
A Charter Member and Past President of the Gaithersburg-Washington Grove Volunteer Fire Department, Lewis Reed was also a member of the advisory board of the Rockville branch of the First National Bank of Maryland, and belonged to the Masonic Lodge of Rockville, the Pentalpha Chapter of the Eastern Star, and the Rockville Rotary Club.
At his death on January 28, 1967 at the age of 79, the Senate of Maryland passed Senate Resolution No. 10, expressing “the deepest regret and sympathy of every member of this body,” describing Reed as “a kindly and loyal person completely devoted to his duties” which he carried out “with fairness and human understanding.” The resolution was sponsored by Senator Thomas M. Anderson, Jr. and Senator Louise Gore.
When you look back and consider what has taken place in the world in the past 100 years or so, you gain a perspective of what Lewis Reed faced. He overcame a lot of obstacles throughout his life. He steered his dealership through World War I, The Great Depression and World War II. When Reed Brothers had no new cars to sell for three and a half years and many dealers went bankrupt, he converted his car showroom into a display room and sold GE washing machines and other appliances. Reed Brothers Dodge occupied two locations, the original at the Veirs Mill Road and Rockville Pike intersection and the second at 15955 Frederick Road in front of the Shady Grove Metro.
Lewis Reed set an outstanding example through his success, but more importantly through his sacrifices and commitment to the community he served. Today, Bainbridge Shady Grove Metro Apartments pays homage to the oldest Dodge dealership in Maryland with commemorative art on the former site of the iconic Reed Brothers dealership.
Bainbridge Shady Grove Metro Apartments now stands on the former site of the Reed Brothers Dodge dealership at 15955 Frederick Road. But a sculpture now installed on the property pays tribute to the oldest Dodge dealership in Maryland history. More than 20 feet high, and over 6 feet wide, the public art is inspired by 1939 Dodge headlamps, and the fender of a 1957 Dodge pickup truck.
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Copyright Notice
Reed Brothers Dodge History (1915-2012) by Jeanne Gartner is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.
Reed Brothers Dodge History 1915 – 2012 
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