LaSorda speaks: We're not breaking up the band!
The newly minted Chrysler Corp. held its first press conference today and carryover CEO Tom LaSorda made it clear that all of Chrysler's brands will be kept together after the sale to Cerberus Capital Management goes through. Many have been wondering if Cerberus would pull an Edward Lewis à la Pretty Woman and break up the automaker, selling off its pieces for profit. LaSorda says that won't happen, and in addition his company and Daimler AG will continue to work together in areas such as hybrid technology and purchasing. One would also hope that work done to bring a small B-class car to Chrysler's product portfolio from Chinese automaker Chery is also intact.LaSorda also said that the purchase will not be followed by more job cuts than were already planned. One job cut we speculate might be considered is LaSorda's own position as CEO of Chrysler Corp. We suspect he'll be given a year or two to improve Chrysler's standing, but ex-Chrysler wünderboy Wolfgang Bernhard is waiting unemployed in the wings. It's likely Bernhard couldn't be named CEO of Chrysler Corp. anyway until his noncompete clause with VW/Audi runs its course. Until that time, you can bet LaSorda will be working to prove his worth to the new suits in town from Cerberus.
[Source: Automotive News - sub. req'd]
Reader Comments (Page 1 of 2)
Ron 3:09PM (5/15/2007)
Bring back the Plymouth!!
Reply
BOB 3:23PM (5/15/2007)
I SAW THE WEBCAST.........
Let's just say he needs to be better at running a car company than at public speaking.
A few things dont add up -- particularly how they can afford to make cars in the US with the present labor and health care costs. No doubt, they will be leaning very hard on the UAW and CAW, but today was not the day to start that.
Reply
big L 9:03AM (5/16/2007)
Cerberus-the three-headed dog of Hell.
no, really, that is what the name means....
un-believable!
Reply
Ugh 3:34PM (5/15/2007)
God Chrysler sucks.
Reply
XiozTzu 4:50PM (5/15/2007)
Did Daimler keep any of the old US brands? Is Dodge, Jeep, etc still part of Chrysler?
Reply
Don 3:49PM (5/15/2007)
Pardon me, but I don't believe a friggin' word LaSorda says...the sooner they get rid of the idiot the better off they'll be.
Reply
bmoredlj 3:54PM (5/15/2007)
Bring back the Turbine Car!
Reply
Whatsinaname 4:15PM (5/15/2007)
Yeah right, there won't be any additional job cuts beyond what is already happening?
1) Cerberus is going to gut Chrysler the way you gut a fish
2) Tom LaSorda is history after a couple month long honeymoon with Cerberus. Do you really think that one company is going to take over another company and then leave the managment untouched? No way. Cerberus already has a person in their hip pocket to take over from LaSorda.
I happen to work at Chrysler (thank god not as an employee!!) and I can tell you for a 100% FACT that 50-60% of the engineers at Chrysler do ABSOLUTELY nothing at all other than move one stack of papers from one pile to another: thats their job.
When Cerberus gets wind of what REALLY happens at Chrysler and what all of the engineers are getting paid big dollars to do, if Cerberus is intelligently managed then they will get rid of all the useless dead weight that is dragging that company into the ground.
Reply
Richard Warren 4:27PM (5/15/2007)
UH-HUH! Typical corporate speak, which translated means we're going to sell of chunks, layoff more people and make some dough at the top, and I'll be around for 15 minutes after the real takeover.
Heard it wayyyyyyyyyy to many times over the years.
Reply
stan 4:37PM (5/15/2007)
Within three years we will see something like this:
- Chrysler Financial goes to GMAC
- Jeep goes to GM
- Dodge goes to Ford, who doesn't have a "sporty" division. The advertising will mention that the Dodge Bros. built engines for Henry's first cars.
- Chrysler, the brand and car models, goes to Volkswagen
- Some company in the contract manufacturing business buys the Mopar name, and uses it for a line of auto parts.
- Hyundai-Kia buys a classic marque and it becomes their premium division. Desoto, Hudson, Nash, etc.
- Toyota, Honda, &c., buy more than a few facilities.
and it's all a damn shame.
Reply
Uncle Bob 4:41PM (5/15/2007)
Chrysler is a good vehicle for low income families.
Reply
Seminole 4:41PM (5/15/2007)
Guess you can add Chrysler, Dodge, and Jeep to the list of bygone automakers. Products are too bland, horrible interiors, and cost too much. I have to pay $32,000 for a Charger just to get alloy wheels, leather and body colored side mirrors? NEXT! Good riddance. It's a shame for all the factory workers. I blame the designers, engineers and upper management.
Reply
BAK DOC 9:19AM (5/16/2007)
WHAT A SHAME !!! DOCTOR Z YOU ARE A BIG FAT LIER !! 10 YEARS FROM NOW CHRYSLER WILL BE A FAINT MEMORY IN DETROIT AUTO LORE!!
Reply
Billy C. 4:53PM (5/15/2007)
Jeep will survive - its the only unique brand and has a lot of market value on its own.
I don't think the rest of Chrysler really has anything that isn't easily replicated by one of the other companies - minivans are toast, the Hemi is a gas guzzler for rednecks, and the rest are just filler. Maybe they can become a contract manufacturer for other companies.
Reply
dakota 7:54PM (5/15/2007)
"I have to pay $32,000 for a Charger just to get alloy wheels, leather and body colored side mirrors?"
Really? Because a Charger SXT with 17" alloys and heated power leather seats comes in at $28,375. Nice lie you tried to tell there.
Reply
kevin werry 6:11PM (5/15/2007)
you Forgot low income people for ford and chevy.
Reply
Barney 7:06PM (5/15/2007)
LaSorda tells people what they want to hear. Anyone thinking about a Chrysler for their next car, may hesitate. He's assuring them like any used car dealer would. Even if he is fibbing, he still gets paid a good salary.
Reply
kyro 9:43PM (5/15/2007)
Note today's press releases - the new company will be for all intents and purposes DEBT-FREE. GM and Ford would KILL to have that chance.
Reply
Seminole 10:09PM (5/15/2007)
@ Dakota "Really? Because a Charger SXT with 17" alloys and heated power leather seats comes in at $28,375. Nice lie you tried to tell there."
Well if you want to be a prick there, your wrong too. You can get a SXT with leather trimmed seats and the standard alloys the SXT comes with for $27,620, and after $1500 back its only $26,120. I know that. But read what I wrote: "I have to pay $32,000 for a Charger just to get alloy wheels, leather and BODY COLORED SIDE MIRRORS?" To get body colored side mirrors you have to get the R/T which starts at $31,190 before any options. I like things like a sunroof, a alarm, etc. all those easily push the price of the Charger into the $32,000+ range. I'll take a BMW 3 or a G35 over a Charger any day. So it wasn't really a question of me lying, which I don't appreciate you accusing me of, but more of you being to incompetent to read my entire quote. Please argue with me if I'm wrong.
-Seminole.
Reply
Bill 12:49AM (5/16/2007)
Hell no, send "Volfgang" back to Germany. These f'ing krauts are screwing up the entire auto industry. Turn on the "gas", if you know what I mean.
Reply