After Chrétien's loss, there was one clear idea who would be the next leader of the Liberals. Ever since the 1987 leadership election, Paul Martin had been seen as the next in line, being the heir to Turner's faction. However, in an upset, former MP Claude Lanthier would defeat Martin in a rematch of 1988. Martin would have to wait for a by-election and the next leadership election. Many candidates would come forward. Turner/Martinites would have two main candidates, the young former Minister of Youth Jean Lapierre (who had been the youngest cabinet minister under Turner) along with auto-parts executive and York-Simcoe MP Frank Stronach.
Lapierre had been a strong supporter of Turner’s leadership, with him and his supporters wearing black armbands at the 1987 convention. Stronach was the founder of Magna International, and while he had a fiscally conservative platform (calling for a flat tax and a balanced budget), he also supported populist policies like Senate reform. He would also be good friends with Chrétien, who appointed him to the post of Minister of Consumer and Corporate Affairs. Bob Speller was also running, but he would be overshadowed by Stronach’s more popular campaign.
The Chrétienites would have a smaller field than expected. Brian Tobin had retired from federal politics to become the leader of the Newfoundland Liberal Party and had been elected as Premier. However, others would run, like Dennis Mills, and Christine Stewart. The leading candidate would be Donald Johnston. While he had run against Chrétien in 1984, he would support him in 1987 and would serve as Defence Minister.
Stronach's money and support with all wings of the party, along with his own "Team Stronach" movement. The businessman had attacked the division of previous leadership elections and believed that a united movement would be necessary to defeat Prime Minister Campbell. Stronach would also get large numbers of non-Liberals to sign up and join the party. This would allow him to take a sizeable victory on the first ballot. Lapierre would be in second, while Johnston would have a disappointing third. All other candidates dropped out before the next ballot, getting insignificant numbers of support.
The second ballot would establish the race as being a Lapierre-Stronach battle, with Johnston struggling to establish a second place finish. Stronach’s campaign team had convinced many of his supporters to defect over, giving Stronach the momentum to have a large lead over Stronach, nearly being able to avoid a third ballot. Sure enough, on the third ballot, he would become leader of the Liberal Party, with Johnston as his deputy. Despite some speculation that Lapierre would join the PCs or the PPMQ, he would stay in the party.