Sperlich and Iacocca had been pitching FWD in the Glass House for a while, using up a lot of their political capital, pitching for US production of the European Fiesta, truly a world-class product.
A FWD Fairmont/Zephyr (Fox body) was another ask, but the knives were out in manufacturing, and financial was lukewarm to the investment.
The K-car was largely what a FWD Fairmont would have been at the time; the mini-van that followed was the blockbuster that changed the industry even more than Mustang.
But change of that scope requires full-blown crisis to leave the known for the unknown, and hard as it was at ChryCo, they made it happen.