Chrysler CEO Tom LaSorda’s email to employees

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More updates on the potential break-up of American-German automotive giant DaimlerChrysler. DaimlerChrysler recently announced it might sell off the Chrysler group, viewed by some as going back on it’s word for commitment in making the partnership work. DaimlerChrysler issued a statement to the media today saying it’s future strategy for Chrysler’s could only be decided in weeks or months.

Chrysler CEO Tom LaSorda has decided to shed some light on the matter, whatever light he is able to shed without implicating himself legally of course. The full unedited email is available after the jump.

Tom LaSorda’s Email

Dear Colleagues,

I know you have many questions as a result of the DaimlerChrysler Annual Press Conference last week and the resulting rumors about the future of the Chrysler Group. Im sending this letter because I want to provide you the information that I can, and share with you my personal thoughts.

Journalists and analysts have been busy conjecturing over what will happen. To a certain extent, that is the nature of their business and we need to keep it in perspective. I know that youve been reading and discussing these stories, but I want you to keep in mind that Dieter Zetsche and the Board of Management strongly endorsed the Chrysler Groups new Recovery and Transformation Plan. Dieter added that the company will look into “further strategic options with partners beyond that business cooperation” that I outlined in the Recovery and Transformation Plan, which set off the frenzy of rumors.

We simply cannot respond to these reports. The Board of Management has a duty to consider all options; but while this process is ongoing, the Board – including myself – cant comment on developments because of strict legal requirements.
It may take weeks or months before official comments can be made on some issues. However, I can tell you that further information on the voluntary separation and early retirement programs for employees will be communicated in the next few days.

Meanwhile, our job is very clear. Our mission is to produce great cars and trucks, to take care of our customers and to restore profitability. Whatever fork in the road we may take, we first have to make sure were on the road – and the Recovery and Transformation Plan is that road. The plan is designed to make us profitable by 2008 and put us on solid footing to stay there. This is a sound plan that includes a substantial investment in our long-term competitiveness, and we must focus our attention on executing it.

The Chrysler Group has been around for more than 80 years and has been through difficult times before. We went through a restructuring in 2001, but our situation today is much different. For one thing, were leaner. Another important difference is that we have a full product pipeline with at least 20 new and 13 refreshed vehicles on their way from 2007 to 2009.

We also have achieved areas of operational excellence that are the benchmark of the world. Capacity for the fuel-efficient, four-cylinder World Engine in Dundee, Michigan, will increase to 840,000 units a year over the next few years, compared to the 260,000 we built last year. Our improvements in manufacturing productivity lead the industry over the past four years. Weve also made great strides in product quality – for example, the Chrysler Town & Country minivan led its segment in the 2006 Initial Quality Survey from J.D. Power, beating Toyota and Honda.

Importantly, we are continuing to invest in our future. In addition to the barrage of new products, we will invest $3 billion in new powertrains, including a new family of world-class V-6 engines and a new dual-clutch transmission that we are developing with Getrag.

To sum up, we are a much leaner and stronger organization than before, and we are continuing to make the necessary investments to be competitive into the future. We are a good company with great talent and a clearly defined plan of action. The best way to secure a successful future for the Chrysler Group is to focus on what we can control – that is the Recovery and Transformation Plan. Many of you may be familiar with the adage about accepting what you cannot change and taking charge of what you can control. We can learn a lot from this message.

We have an obligation to each other, to our shareholders, to our dealers and to our customers to make this plan successful. Your support and best effort have never been more important, and I thank you for your continued dedication to the job at hand. In the meantime, you have my promise that we will continue to communicate as openly and directly with you as possible.

Sincerely,
Tom

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After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • normal_user (Member) on Feb 23, 2007 at 4:01 pm

    Recovery and Transformation Plan – other words: production cost cutover via VSS, early retirement. Actually, I admire how American leaders motivate their employees in difficult times, and at the same time giving a hint of the lay-off (not treated as a big issue). They always react positively no matter how bad the situation is.

    Chrysler is too comfortable at home with market share eroded by the japanese makes. Its presence in Europe is also not that significant, the only notable is the Chrysler 300C.

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  • Celicazz (Member) on Feb 23, 2007 at 4:13 pm

    What happened in the 80's are happenning again… History is surely repeats itself…

    Chrysler is going down, again… who will be the next Lee Iacocca?

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  • Matthew Seleigh (Member) on Feb 23, 2007 at 4:46 pm

    Rick Wagoner.

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