Jim Press (photo), president of Toyota North America, the highest-ranking
American ever at a Japanese car company and the only American ever appointed to the Toyota Board of Directors in Japan, has been hired as co-president of Chrysler, a job title he will share with a Chrysler long-time executive, Thomas LaSorda. Lasorda and Press will both report to Bob Nardelli, who was hired as the new chief executive at Chrysler two weeks ago, a move which did not get great reviews in the auto industry. Nardelli's last job ended in his being fired as the top exec at Home Depot by that company's own Board of Directors in January, 2007.
After years of Detroit-area executives leaving that city's wind and cold for the sunny climes of Southern California and the sunny sales of the Asian car companies based there (all but Subaru, still in New Jersey, and now Nissan is in, gulp, Nashville), some Americans trained in "The Toyota Way" (among others) are bringing their expertise "back home".
While we always felt that any industry where the idea of a "promotion" meant moving to Detroit was a bit strange, the facts are that the Domestic Big Three need help ... and who better to get it from than this new crop of Americans trained in both western and eastern sales, manufacturing and marketing cultures? (Photo --- Bob Nardelli, right, and Tom LaSorda).
The hiring of Press seemed to relieve Ron Gettelfinger, president of the United Auto Workers. Gettlefinger said when Bob Nardelli was hired he expected him to be a "slash and burn" type of corporate executive who would cut Chrysler into small pieces, and that he would close some parts of the company and sell-off others. He's now taking a much more pleased "wait and see" attitude on these new hires. But he's also aware that Toyota is no more a "union shop" than Honda, Mazda or any of the other captive Asian imports with US plants.
Press and LaSorda will act as equal co-presidents with Nardelli having the last word in decisions.
One major obstacle Chrysler still needs to overcome is the amount of compensation being paid to these three top execs. Nardelli angered Home Depot shareholders when he refused to take questions during a shareholder meeting in May 2006 as the company's stock was floundering. His rich pay package drew fire; he earned $38.1 million in 2006. Ultimately he was forced out of the company in January 2007, but left with a $210 million golden parachute in cash and stock options that included a $20 million severance payment and retirement benefits of $32 million.
The UAW and other observers and industry analysts say Nardelli, although 
he is being paid only an announced $1 per year plus pay based on his accomplishments at the company, won't be happy unless he receives the multi-millions he is used to taking home every year. (Photo --- Chrysler Hemi engine valve cover).
Press and LaSorda are said to be working under those same "performance-based" conditions. Because both LaSorda and Press are "car guys", Nardelli might find himself outvoted often by a 2-1, perhaps sending "Maximum Bob" looking for the door (and maybe another "golden parachute" the public does not know about).
Adding to the new Chrysler's distinctive "Toyota look" is Deborah Wahl Meyer,44, last week named vice president and chief marketing officer at Chrysler, where she will be responsible for the Chrysler, Dodge and Jeep brands while providing strategic direction for the company's global marketing activities. She had spent the past six years at Toyota Motor Sales, most recently as marketing vice president of Lexus Division. (Photo --- Bob Nardelli, who has the last word, at least right now, at Chrysler LLC).
We'll all take a deep breath and watch what happens ... But it will be strange to see Jim Press at next month's TOKYO MOTOR SHOW leading around a group of Chrysler execs, and not glad-handing the media at the mammoth Toyota exhibit space.
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