Chrysler builds for future

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The car maker will continue to expand outside of North America, said Eric Ridenour, a management board member, speaking at the Shanghai motor show. He declined to provide details on negotiations with possible buyers.

Chrysler’s vision doesn’t change,” Ridenour said. “We’ll continue to focus on expansion outside North America, and this is a key part of our transformation strategy.”

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DaimlerChrysler Chief Executive Officer Dieter Zetsche said on Feb. 14 “all options are open” on the future of Chrysler, which is scaling back the work force by 13,000 people and closing a plant, and said April 4 that the carmaker is in talks on a sale.

The unprofitable unit has a 2009 operating-profit goal of 2.5 percent of sales, helped by the reorganization and new models.

Chrysler will begin selling the Dodge brand in both China and Japan this year. In the U.S., reliance on pickup trucks like the Dodge Ram and sport-utility vehicles such as the Jeep Commander have contributed to a declining market share for Auburn Hills, Michigan- based Chrysler, which lost $1.5 billion in 2006.

The U.S. division wants to tell its workers as soon as possible about plans for the automaker, Ridenour said. Employees are feeling “uncertain” at the moment and this is affecting morale, he said.

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The announcement was made at the recent i2 Planet 2002 Conference in Las Vegas. Chrysler Group is working with the technology vendors i2 Technologies and IBM on the development and implementation of IVP.

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Chrysler LLC hired Brian Hall’s leadership development company, which he runs with two partners out of his Colorado Springs home, to implement a training program for 300 top executives.

Hall unveiled the plan in Detroit Aug. 28 and 29 at a summit his company, Impact Leadership Development Group, designed and led.

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“Our intent was to create a different experience from previous management meetings. We wanted to engage all participants and get their input on creating the new Chrysler,” said Jeff Evans, organization development consultant for Chrysler LLC. “Impact Leadership brought a fresh perspective and a seasoned team to the project. They partnered with our team to accomplish a very successful event.”

Although Hall’s clients include such global giants as Prudential Financial, AOL, Liz Claiborne Inc. and Abbott Laboratories, a phone call in June from Chrysler’s Detroit headquarters came as a surprise to Hall, president and chief executive of Impact Leadership.

Chrysler executives were mapping out a new strategic direction as the company was poised to be sold, and they wanted to sell managers on how to carry out the plan. Hall’s company surfaced from a referral by one of his New York clients, Pepsi-Cola.

All it took was one meeting with Tom LaSorda, then Chrysler’s chief executive and now co-president, for Hall’s company to add Chrysler to its client roster.

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“He asked my philosophy about how to engage the senior leadership in driving a company turnaround. I gave him my thoughts, he liked them, and we went from there,” said Hall, who used to teach leadership and character development at the U.S. Air Force Academy.

“For a small firm from Colorado Springs to be picked to do something of this size and scope is exciting,” he said.

DaimlerChrysler sold the majority of its Chrysler Group to New York-based Cerberus Capital Management LP. The $7.4 billion deal was announced May 14 and finalized Aug. 3. Since then, several management positions have changed, including the chief executive.

Hall hired and led a team of six experts, who devoted six weeks to customizing a program identifying leadership attributes needed to drive Chrysler to success.

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In a separate move, Honda Motor Co. said it was recalling more than 180,000 Civics from the 2006-2007 model year to fix a wheel- bearing seal that could leak and lead to a wheel falling off the car.

The Chrysler recall involves more than 156,000 Jeep Grand Cherokees and Commander SUVs from the 2006-2007 model years, more than 90,000 2007 Jeep Wrangler SUVs and nearly 50,000 2007 Dodge Nitro SUVs.

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