Chrysler decision may take months, automaker says

Tom LaSorda

Automotive News / February 22, 2007 - 11:00 am / UPDATED: 2/22/2007 2:18 P.M.

Downloads: WORD DOCUMENT: Read Chrysler group CEO Tom LaSorda's email to employees

DETROIT -- DaimlerChrysler may communicate its future strategy for the Chrysler group only in weeks or months, the world's fifth-biggest carmaker said today.

In an email to employees on Wednesday, Feb. 22, Chrysler group CEO Tom LaSorda told employees that information on buyout and early retirement programs would be sent soon. The Chrysler group released the text of the email today.

In the email, LaSorda said he was writing to respond to the "frenzy of rumors" that has enveloped the automaker.

DaimlerChrysler CEO Dieter Zetsche said last week that all options were on the table for the Chrysler group.

In his note, LaSorda urged Chrysler staff to focus on carrying out that restructuring plan, which is aimed at restoring the automaker to profitability by 2008.

"Whatever fork in the road we may take, we first have to make sure we're on the road," he said.

LaSorda said Chrysler employees would begin to receive details on buyouts and early retirement incentives being offered in "the next few days."

But he cautioned that it would take longer for DaimlerChrysler to be able to provide answers on other issues related to a potential sale. "It may take weeks or months before official comments can be made on some issues," LaSorda said.

Chrysler group spokesman Jason Vines said LaSorda was also meeting with Chrysler dealers today to address the questions some of them had begun putting to executives.

Reports began to surface last week that General Motors was in negotiations to buy Chrysler outright, just days after DaimlerChrysler CEO Dieter Zetsche said all options were on the table for the Chrysler group, which represents the Chrysler, Dodge and Jeep brands.

"We simply cannot respond to these reports," LaSorda said in his staff email. "The board of management has a duty to consider all options, but while this process is ongoing, the board -- including myself -- can't comment on developments because of strict legal requirements."

LaSorda has made repairing strained relations with Chrysler's dealers a key priority after taking over direct responsibility for the automaker's sales operations late last year.

Several dealers have said the sudden prospect of a Chrysler sale had added a new note of uncertainty for their own staffers and potential customers.