Chrysler's Spanish Accent

Under its aggressive young president, Lynn Townsend, 44, resurgent Chrysler Corp. is not only trying to catch up with Ford and General Motors in the U.S. but also to match their overseas holdings. Chrysler has 16 plants overseas, and earlier this year acquired control of Simca, France's fourth largest automaker. Last week Townsend outmaneuvered both Ford and General Motors to become the first U.S. automaker to win a foothold in Spain.

Both G.M. and Ford have been negotiating with the Spanish government, but failed to reach an agreement because of a new government regulation requiring unrealistically high auto output. Taking another tack, Townsend paid $17 million for a 35% interest in Madrid's thriving Barreiros Diesel S.A., Spain's biggest privately owned truck and enginemaker, which is not bound by the new decree. Aided by Chrysler know-how and money, President Eduardo Barreiros, 43 (TIME, April 12), will build a new plant, intends to produce 15,000 Dodge Darts the first year. Another attractive angle for Chrysler: autos made in Spain can more easily enter such markets as Latin America.

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