Gary Lashinsky
Enthusiast
NEWSMAKER-Chrysler chief known for humor, love of cars
By Debra Sherman
DETROIT, Nov 14 (Reuters) - With the expected ouster of Chrysler President James Holden, Germany's DaimlerChrysler AG <DCX.N><DCXGn.DE> loses not only its highest profile American executive but a man known for his razor-sharp sense of humor and love of rebuilding classic cars.
Holden, 49, likely will be removed as head of Chrysler and replaced by Dieter Zetsche, head of DaimlerChrysler's commercial vehicle unit, during Friday's supervisory board meeting, company sources said.
Holden's expected ouster and Zetsche's ascendancy puts Chrysler more tightly under German control almost two years after the $36 billion acquisition of Chrysler by Germany's Daimler-Benz.
Holden's removal will end his brief tenure, during which Chrysler went from being viewed as one of the industry's most profitable automakers to one that lost $512 million in the most recent quarter and is struggling to cut costs.
Just two months ago, Holden, who sits on the automaker's management board, said he had the full support of Chairman Juergen Schrempp and the board.
"I know there's a lot of confusion or suspicion on who's calling the shots," he told Reuters. "We're set up so that I'm developing the management team that's going to lead (Chrysler) through the next decade."
Since then, Chrysler has struggled with rising costs and U.S. consumer incentives, slowing sales and aging products. Last month, Reuters learned the automaker planned to cancel or delay several new products beyond 2004.
However, some industry observers and company insiders said Holden is being made a scapegoat and is not to blame for Chrysler's deterioration. They said the problems would have occurred even if the company had never been acquired.
Many felt Holden, who has held 15 jobs in 20 years at the company, was the right man to lead Chrysler after his predecessor, Thomas Stallkamp, was ousted in a boardroom coup in September 1999.
Holden's sales background also made him a favorite among Chrysler dealers.
"It's clearly disappointing," Denver dealer John Schenden said of Holden's expected exit. "Jim is excellent among the dealers. The dealers know him, they trust him. He's the ultimate car guy. He understands our business."
UBS Warburg analyst Saul Rubin said Holden's affable nature as opposed to Stallkamp's outspoken approach, which many believed is what got him forced out, may have hurt the Canadian-born executive. Holden is a naturalized U.S. citizen.
"Stallkamp was his own man," Rubin said. "He challenged what (German executives) said, the decisions they made. Holden is more willing to toe the line. He wasn't the kind of guy who would go up against Schrempp and tell him he's wrong."
The former sales and marketing executive proved his mettle in 1990 as he juggled earning a Master's degree at night business school with managing revenue on an almost-hourly basis at cash-strapped Chrysler, friends and company officials said.
His leadership qualities were also apparent when he called for the death of Chrysler's struggling Eagle and Plymouth brands, in 1996 and 1999, respectively. He also revamped executive compensation schemes, wrote the dealer consolidation plan used to strengthen the U.S. brands and spearheaded the adoption of quality standards at company plants.
Ironically, it was Holden who in 1996 helped scuttle a planned joint venture with Daimler-Benz in the developing markets in Asia, Eastern Europe and Latin America, where neither company had a strong presence.
After visiting those areas, Holden recommended against the project - code-named "Lone Star" - and it was eventually deemed too complicated. That set the stage for the later acquisition.
Wall Street welcomed his appointment. Analysts credit him as one of the people responsible for Chrysler's success.
However, he may have been hurt by his lack of experience in other areas, University of Michigan professor David Cole said.
"He does not have the technical depth that is typically consistent with a Mercedes executive," Cole said. "Particularly in Germany and Japan, technical credentials are extremely important. Those are the people that run companies."
Holden is admired for his humor. "They're not too many people that want to cross swords with that wit," long-time friend Tom Reiss said last year, citing the balding Holden's jest that Germans call him "Herr Holden," giving him the hair he lacks.
Reiss added the Windsor, Ont.-native is devoted to his three children and wife Patti, with whom he recently celebrated a 26th wedding anniversary.
Holden also has found the time to attend University of Michigan football games with son Patrick, a sophomore, and rebuild classic cars, such as a red 1957 Ford Thunderbird convertible with younger teenage son Michael.
17:07 11-14-00
Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL.
By Debra Sherman
DETROIT, Nov 14 (Reuters) - With the expected ouster of Chrysler President James Holden, Germany's DaimlerChrysler AG <DCX.N><DCXGn.DE> loses not only its highest profile American executive but a man known for his razor-sharp sense of humor and love of rebuilding classic cars.
Holden, 49, likely will be removed as head of Chrysler and replaced by Dieter Zetsche, head of DaimlerChrysler's commercial vehicle unit, during Friday's supervisory board meeting, company sources said.
Holden's expected ouster and Zetsche's ascendancy puts Chrysler more tightly under German control almost two years after the $36 billion acquisition of Chrysler by Germany's Daimler-Benz.
Holden's removal will end his brief tenure, during which Chrysler went from being viewed as one of the industry's most profitable automakers to one that lost $512 million in the most recent quarter and is struggling to cut costs.
Just two months ago, Holden, who sits on the automaker's management board, said he had the full support of Chairman Juergen Schrempp and the board.
"I know there's a lot of confusion or suspicion on who's calling the shots," he told Reuters. "We're set up so that I'm developing the management team that's going to lead (Chrysler) through the next decade."
Since then, Chrysler has struggled with rising costs and U.S. consumer incentives, slowing sales and aging products. Last month, Reuters learned the automaker planned to cancel or delay several new products beyond 2004.
However, some industry observers and company insiders said Holden is being made a scapegoat and is not to blame for Chrysler's deterioration. They said the problems would have occurred even if the company had never been acquired.
Many felt Holden, who has held 15 jobs in 20 years at the company, was the right man to lead Chrysler after his predecessor, Thomas Stallkamp, was ousted in a boardroom coup in September 1999.
Holden's sales background also made him a favorite among Chrysler dealers.
"It's clearly disappointing," Denver dealer John Schenden said of Holden's expected exit. "Jim is excellent among the dealers. The dealers know him, they trust him. He's the ultimate car guy. He understands our business."
UBS Warburg analyst Saul Rubin said Holden's affable nature as opposed to Stallkamp's outspoken approach, which many believed is what got him forced out, may have hurt the Canadian-born executive. Holden is a naturalized U.S. citizen.
"Stallkamp was his own man," Rubin said. "He challenged what (German executives) said, the decisions they made. Holden is more willing to toe the line. He wasn't the kind of guy who would go up against Schrempp and tell him he's wrong."
The former sales and marketing executive proved his mettle in 1990 as he juggled earning a Master's degree at night business school with managing revenue on an almost-hourly basis at cash-strapped Chrysler, friends and company officials said.
His leadership qualities were also apparent when he called for the death of Chrysler's struggling Eagle and Plymouth brands, in 1996 and 1999, respectively. He also revamped executive compensation schemes, wrote the dealer consolidation plan used to strengthen the U.S. brands and spearheaded the adoption of quality standards at company plants.
Ironically, it was Holden who in 1996 helped scuttle a planned joint venture with Daimler-Benz in the developing markets in Asia, Eastern Europe and Latin America, where neither company had a strong presence.
After visiting those areas, Holden recommended against the project - code-named "Lone Star" - and it was eventually deemed too complicated. That set the stage for the later acquisition.
Wall Street welcomed his appointment. Analysts credit him as one of the people responsible for Chrysler's success.
However, he may have been hurt by his lack of experience in other areas, University of Michigan professor David Cole said.
"He does not have the technical depth that is typically consistent with a Mercedes executive," Cole said. "Particularly in Germany and Japan, technical credentials are extremely important. Those are the people that run companies."
Holden is admired for his humor. "They're not too many people that want to cross swords with that wit," long-time friend Tom Reiss said last year, citing the balding Holden's jest that Germans call him "Herr Holden," giving him the hair he lacks.
Reiss added the Windsor, Ont.-native is devoted to his three children and wife Patti, with whom he recently celebrated a 26th wedding anniversary.
Holden also has found the time to attend University of Michigan football games with son Patrick, a sophomore, and rebuild classic cars, such as a red 1957 Ford Thunderbird convertible with younger teenage son Michael.
17:07 11-14-00
Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL.
