CEO: Chrysler will make it

[ From Lansing State Journal ]

Automaker continues to invest in new products, LaSorda says By Tom Krisher Associated Press AUBURN HILLS - Chrysler Group Chief Executive Officer Tom LaSorda has spent the past few days soothing the nerves of employees and dealers. That has come as stories swirl about a possible sale of the automaker. In a conference call Thursday, LaSorda told the company's U.S. and Canadian dealers that Chrysler, owned by Germany's DaimlerChrysler AG, will make it through the current tough times

He said the company will continue to invest $5.7 billion to $6 billion a year on future products, rolling out 20 all-new vehicles during the next three years and 12 updated ones between now and 2009. It also will invest more than $3 billion in new powertrains, including a new clutch system for better fuel economy, new axles and a new family of V-6 engines.

"Do these sound like the actions of a company uncertain about its future?" he asked. "Obviously not."

On Wednesday, LaSorda sent an e-mail message to workers saying that he knows there have been a "frenzy of rumors" since last week's announcement that DaimlerChrysler is seeking partners and strategic options for its U.S. operations.

Chairman Dieter Zetsche wouldn't rule out selling Chrysler, and late last week, reports surfaced that Detroit rival General Motors Corp. was among the entities interested in buying the company.

In his e-mail, LaSorda said he couldn't respond to the reports because of legal requirements, but said the DaimlerChrysler Board of Management has a duty to consider all options.

"It may take weeks or months before official comments can be made on some issues," the e-mail said, adding that the DaimlerChrysler board has strongly endorsed the struggling Chrysler's recovery plan.

"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," he said in the e-mail.

"Whatever fork in the road we may take, we first have to make sure we're on the road - and the recovery and transformation plan is that road."

Last week the company announced plans to shed 13,000 jobs, including 11,000 production workers and 2,000 salaried employees as it trims expenses and factory capacity to match declining sales. It also announced the closure of one plant and layoffs at several others.

LaSorda said in the e-mail that information on voluntary separation and early retirement programs will be communicated to employees in the next few days.

Speaking to the dealers, LaSorda said he knows that many of them have concerns, but he encouraged them to keep investing in their businesses just as Chrysler will continue to invest.

He said he is a fourth-generation Chrysler employee, working for a company that has been around 80 years.

"History and heritage both in dealerships and a company mean a lot, and it's something we need to keep for the future," he said.

"The Chrysler Group will return to profitability. We need you. You are our customers. You're the only avenue that brings in revenue," LaSorda told the dealers.

DaimlerChrysler's U.S. shares fell 86 cents, or 1.21 percent, to $69.98 on the New York Stock Exchange. GM's shares also dropped, by 74 cents, or 2.09 percent, to $34.63.

GM won't comment on reports that it is interested in buying Chrysler, calling them speculation. But officials haven't denied the reports, either.

Chrysler last week announced a 2006 operating loss of $1.475 billion and said it expects to show losses through 2007. DaimlerChrysler earned $4.26 billion in 2006.