However, the company was still facing a dire financial situation and it was obvious that new blood was needed, especially as President Carter had written off Chrysler's management as incompetent and made it clear that no federal bailout would happen so long as the status quo were maintained. Thus, Lee Iacocca was hired as company president in July 1978 three months after his expulsion from Ford. John Ricardo held onto his position as chairman for another year, but his presence merely stood in the way of the hoped-for federal bailout, thus he summarily resigned in early 1979 with Iacocca assuming his position. By the summer of 1980 Chrysler Corporation through ardent negotiations with Congress secured a $1.5 billion loan guarantee, which allowed the company to put into production the K-Car line and intensify development of the Minivan line of vehicles.