Tom LaSorda, vice chairman and president of Chrysler has a message for reporters: "We're not selling any brands, like a Jeep stand alone. We're just not doing that."What? Chrysler goes begging for taxpayer money from the government because it was on the brink of running out of cash to fund operations and then dismisses out of hand the idea of selling off brands to position itself to survive.
Mr. LaSorda's comments are indicative of the arrogance of the United States auto industry, and his lack of flexibility will probably be a major cog in the downfall of Chrysler. Why would he completely write off the idea of selling brands? Wouldn't it make more sense to evaluate every single option for saving the company?
Chrysler is in crisis mode, and Mr. LaSorda doesn't have the luxury of dismissing any ideas for shoring up the company's balance sheet.
He should be let go as a condition for the company receiving any more funding from the government.



Reader Comments (Page 1 of 1)
1-15-2009 @ 3:53PM
Nick Dube said...
To be fair Chrysler only has three brands; Chrysler, Jeep and Dodge and they share quite a bit of R&D costs between all three brands. Unlike GM who own multiple dealer brands in the United States alone Chrysler is in a position where they hold 3 brands which sell to three different markets. Cannibalizing of sales is far more common with GM when there are 5 or 6 very similar cars, quite different for Chrysler whose Jeeps are unlike anything else they offer.
Selling one brand would possibly do more harm then the "good" from a cash injection
1-15-2009 @ 4:28PM
Danny L. McDaniel said...
There is not a car manufacturer that exist today that will make a profit in 2009. Chrsyler can make it through this mild depression and come out smaller and profitable. Everyone who comments on the Big Three just repeat what the talking heads say in the media without thinking, even though there are hard times ahead, no company has to liquidate.
Danny L. McDaniel
Lafayette, Indiana
1-15-2009 @ 4:48PM
vanmanlocal110 said...
Where did the reporter get his info? There was a ten minute conference call about that situation this morning and a lot more was discussed and Mr.LaSorda pretty much said that rumor and a lot more was floating around.
1-15-2009 @ 5:06PM
xenogears728 said...
The suggestions so far for chrysler, is pretty unreasonable. How is the company supposed to survive really, it only has 3 brands, chrysler jeep and dodge.
If it were to sell even one of them. It would basically cut off an essential limb.Chrysler needs to do the right thing and admit that its going to need more than GM to help save it.
But nobody can afford to save chrysler right now. And it can't go out of business. I would dare suggest the government take it over completely. And use chysler as part of its stimulus program. It sounds like a crazy idea. But really is it?
Expanding chysler and make it a more eco friendly,Gas sipping eco cars, alternative fuel cars. Reductions in overall prices. And Most importantly expanding globally. This is a global economy after all. Plus government can make some of the money out of this whole venture to eventually help pay down the national debt.
1-15-2009 @ 6:44PM
antonio311 said...
This reporter is full of hot air! Where in the world is he getting this info??? Or is she making it up? Chrysler hasn't even tapped into the loan yet. And they won't sell of the Jeep brand...it's too intertwined into the other brands. Chrysler had the concept with the most attention at the auto show. They had the least amount of recalls in the industry in 2008. And they also sold 2 MILLION vehicles in 2008. I hope this puts this reporters panties in a bunch!
1-15-2009 @ 7:01PM
Rob said...
First off...to Zac, Chrysler has considered that idea already. You are naive to think they haven't. Tom Lasorda is telling you we're not doing it because it is not a smart move, not because he won't consider it. Secondly...to xenogears728, Chrysler is better positioned to survive than you think. Cerberus has made a lot of changes for the better since buying us in 2007. We are a year ahead of GM in making our turnaround. Just because we are smaller, doesn't mean we're destined to fail. Before the credit problems that started in the summer, we were beating all of our cost targets. The credit problem really is to blame for derailing the recovery process. Thirdly...I believe that because Cerberus keeps so much of our data away from the media, the media writes these kind of ignorant articles as a way to strike back. The media is writing things based on assumptions and it is hurting us. To the buying public...have confidence when buying a Chrysler product, don't believe jokers like Zac.
1-15-2009 @ 7:03PM
Bob said...
Dead skunk in the middle of the road.
1-16-2009 @ 6:06AM
Robin Brown said...
Do you know anything about the car industry?
1-16-2009 @ 1:24PM
Wathel Bloture Herness said...
Is Zac arrogant, lying, stupid, or all three?
If you pick any above choices to describe Zac you're probably correct.
Zac, Chrysler knows what they are doing better than you know your own job. You've never driven their vehicles so you really don't know about them. Back around 1980 they had stupid people like Zac wanted to kill Chrysler. Since then, Chrysler has been a major part of the US Economy. BTW the government made over $300 million dollars in profit off the Chrysler loan of 1980. The ones on here complaining hasn't paid any taxes in comparison to the Chrysler Workers.
Help make idiots of these stupid idiots like Zac. Buy yourself a high quality Chrysler, Jeep or Dodge.
1-16-2009 @ 7:20PM
Terdchaser said...
La Sorda needs to be canned. I can only see Chrysler going straight to the dumper with him at the helm. Does anyone remember his stint at Home Depot? OMG! LEE IACCOCA WHERE ARE YOU NOW! Zac needs to suck on an exhaust pipe of a 426!
1-16-2009 @ 11:18PM
dtxt4u said...
Hmmm - Least amount of recalls in 2008, im sure that is true, especially when you refuse to accept accountabilty for one of the biggest engine malfunctions (due to design) in history from past years. JUST A LITTLE HINT, INTEGRITY IS NOT ONE OF CHRYSLERS STRONG POINTS. . .again . . thanks Chrysler. . for making me pay for my concorde and its pitiful engine twice.
1-19-2009 @ 11:02AM
kevin said...
First off, Lasorda didn't "completely write off" the possibility of selling off brands, just denied that the company was in talks to do so right now.
Second, selling a brand like Jeep, will only strengthen their position if the deal is right. Obviously, right now there is no deal that is right. Hence, that's why they are not in talks with Nissan or anyone else anymore.
Third, part of the bailout agreement says that any sale of assets has to go through the Auto Czar, so any deal will be subject to government approval and hopefully the taxpayer's money will be respected in that manner.
Also- terdchaser, Tom Lasorda is the President of Chrysler, and he has been in the auto industry since the 70s. Bob Nardelli is the CEO and he came from Home Depot where the Board pushed him out for taking to much compensation, but the company did grow and perform well under his watch.
1-24-2009 @ 8:36AM
jh3w64133 said...
Well,
you got a guy that sold nuts & bolts all his life running a car company, and most of the exec's over 60, how you get any new fresh ideas out of that combo is beyond me....
1-24-2009 @ 9:46AM
Vince Marchisotto said...
Chrysler is offering 0% financing, Employee Pricing & Rebates on EVERYTHING THEY SELL!!! ( EXCEPT THE SPRINTER ) DAMN!!! IF ONLY I STILL HAD A JOB AND COULD AFFORD A NEW 6 SPEED HEMI CHARGER!! REALLY GUYS WHAT DO U WANT ? BLOOD?? GET CEREBRUS OUT OF THERE!! SELL CHRYSLER FINANCIAL !! LONG LIVE CHRYSLER!!! I MISS THE HELL OUT OF PLYMOUTH ROCK! HEY I'VE GOT THE ANSWER!!! AN ATOMIC POWERED PLYMOUTH ROAD RUNNER!!!! MAKE MINE PLUM CRAZY!! NO POWER CORD! NO REFUELING AND NO NOISE!!