Chrysler LLC announced Thursday that it had poached a top executive, James Press, from Japanese rival Toyota as the newly independent US automaker seeks to re-energize its operations.
Press, a veteran auto industry executive, was formerly the president and chief operating officer of Toyota Motors North America. He spent 37 years working his way up the corporate ladder at the Japanese auto giant.
Press has been credited for overseeing Toyota's dramatic growth in the US, the world's largest vehicle market, where it is the number two auto manufacturer and threatening to steal the crown from market leader General Motors.
“Stealing an executive the caliber of Press from giant Toyota clearly demonstrates that the traditional playbook is out the window when a company is owned by a private equity firm, ready to do whatever it takes to succeed,” said Michelle Krebs, a senior editor at Edmunds' AutoObserver.com.
Chrysler was taken over last month by Cerberus Capital Management, a private equity firm headed by former US Treasury secretary John Snow, in a 7.4-billion-dollar deal with German auto group DaimlerChrysler.
The American car maker's fortunes have dwindled of late as it has struggled to maintain a profit, sales momentum and market share.
The US auto manufacturer, which is based in Auburn Hills, Michigan, is vying to shore up its performance, partly by overhauling its top management ranks.
Cerberus appointed Robert Nardelli, the former chairman of Home Depot, as its chief executive officer last month. Press, an American, will report to Nardelli in his new job as Chrysler's vice chairman and president.
“One of the most successful executives in the history of the auto industry has joined our leadership team at the New Chrysler,” Nardelli said.
Chrysler said Press will be tasked with overseeing the vehicle maker's North American sales, international sales, global marketing, product strategy, and service and parts operations.
The auto manufacturer said Tuesday that its US sales for August dropped 6.1 percent from a year ago to 168,203 vehicles amid fierce competition from Japanese and South Koran rivals.
Krebs said auto industry rivals would be watching closely to see if Press can help drive Chrysler back to profitability and boost sales.
Toyota shifted 233,471 vehicles out of its showrooms last month, marking a more modest 2.8 sales decline.
Chrysler's passenger car sales, however, leapt 18 percent, boosted in part by new models such as its Chrysler Sebring sedan and convertible.
Toyota said Press' departure will be effective on September 14. He will leave Toyota just months after being made its first foreign director.
Chrysler did not reveal how much Press would be paid, but his salary and benefits are likely to be lucrative.
And aside from his new executive suite at Chrysler, Press has also been appointed to a senior executive position at Cerberus.
US sales of Toyota's popular Prius hybrid, the luxury Lexus brand and the Camry sedan boomed under Press' leadership.
He is well-versed in managing auto manufacturing operations as he oversaw US sales and engineering and 15 manufacturing plants with 41,000 employees in North America for Toyota.
The Japanese car giant acknowledged Press' contribution in building Toyota's US footprint.
“Jim has played a significant role in strengthening Toyota's presence in the United States,” Toyota president Katsuaki Watanabe said in a statement.
Toyota said that Shigeru Hayakawa, an executive vice president at its North American group, will replace Press as head of Toyota Motor North America.
Press joins Chrysler as it seeks to mount a major expansion overseas, including a new partnership in China with Chery Motor.
The newly minted Chrysler executive will also gain a seat on the company's board of directors.
