Chrysler Presses its luck

Cerberus Capital Management certainly isn’t wasting any time assembling a super group management team for Chrysler. Robert Nardelli as CEO seemed odd and perfect at the same time. Since that announcement a few others have come along, but Chrysler’s most masterful coup has been the talent raid on Toyota that nabbed them Jim Press, the King Midas of Toyota Motor North America. Press recently was named President and COO of Toyota Motor North America and was also the first non-Japanese to be named to the board of the Toyota mother ship back in Tokyo.

So why is Press leaving Toyota after 37 very successful years? It is likely that he chose to leave because he hit the ceiling. He’d probably have had zero chance of ever being CEO of Toyota Corporation. And if he can do for Chrysler what Carlos Ghosn did for Nissan, he will almost certainly be CEO of Chrysler eventually. Then there’s the money. Cerberus and other private equity firms often pay a (relatively) paltry salary but give the CEO a big cut of the action when things go well. So loyalty and sentiment aside, Press probably took the deal because he loves a good challenge and because it could be very lucrative for him personally.

But before he starts shopping for yachts, he’s got to roll up his sleeves and do the hard work. He has the title of Co-Chairman and Co-President, which he shares with former Chrysler boss Tom LaSorda. Press is the sales guy and LaSorda’s the manufacturing guy. They will have to work together to fill the gaps in Chrysler’s line-up. The company has few product hits (with the exception of the 300C and the Wrangler); they have no small cars, the minivans need tweaking, and their lineup of SUVs is behind the times.

Nardelli has a three-year plan to get Chrysler’s financial house in order and is looking ahead 10 years to anticipate drivers’ wants and needs. Having Jim Press in his corner is probably the best thing that could have happened to the new Chrysler CEO.