Chrysler's Press may exit this year

About a half-dozen dealers contacted by the Free Press said no one from Chrysler had told them when or if Press was leaving. One person familiar with Chrysler's new structure said Press' new role was meant to be temporary.

Fiat and Chrysler CEO Sergio Marchionne has implemented a flatter organization since Chrysler's June 10 bankruptcy exit. Where Chrysler operated before the bankruptcy with a chairman and two vice chairmen, Marchionne has implemented a structure based on four presidents for the company's Chrysler, Jeep, Dodge and Mopar replacement parts brands.

Fiat owns 20% of Chrysler. The UAW's retiree health care trust owns 67.7%, while the U.S. and Canadian governments own 12.3%.

Cerberus Capital Management, controlling investors in pre-bankruptcy Chrysler, lured Press away from Toyota Motor Corp., where he spent 37 years, eventually becoming Toyota's highest-ranking American.

In Auburn Hills, Press embraced the challenge of reviving Chrysler, which was caught with too many trucks and SUVs just as gas prices soared and consumers moved toward smaller vehicles. Press tried to reduce Chrysler's dependence on sales to rental companies and increase the percentage of sales to consumers, but it was an uphill struggle as the U.S. economy imploded.

Eventually Chrysler asked Congress and the Bush administration for financial assistance, which led to the government-backed bankruptcy sale. Press' main role in that process was to terminate 789, or 25%, of its U.S. dealerships. While the company said the move was necessary to strengthen the surviving 2,400 dealers, it infuriated some dealers.

More recently, Chrysler has contacted some of the dealers it terminated and asked whetherthey would like to compete for one of 140 new locations in what the company said are more attractive markets. link....