Jim Press

Jim Press was once known as a reputable executive in the auto industry. However, his experience at Chrysler was not something to be proud of. After joining Chrysler, the Auburn Hills company went into bankruptcy and Press was unable to work out a deal with Fiat SpA.

Word leaked yesterday that Press, 63, has been working as a consultant to Renault-Nissan for the past four months. Press, who has a lot of useful knowledge on sales and marketing, has been visiting dealers in the United States, Europe and Japan.

Speculations has it that Press’s return to the game could cause a reshuffling inside Renault-Nissan, possible setting the stage for the eventual retirement of current CEO Carlos Ghosn. Will Press take over? Who knows?

All we know is that Toyota, Press former employer for 37 years, isn’t to happy watching him play on the enemy’s side.

- By: Omar Rana

Source: CNNMoney

Jim Press, the first American member of ToMoCo”s board of directors, said Today that Akio Toyoda was the right executive to save his family”s company from “˜financially oriented pirates.” “The root cause of their problems is that the company was hijacked, some years ago, by anti-family, financially oriented pirates,” Press said.

Press went on to sing Toyoda”s praises, even saying that he is the only man for the job and that “˜he embodies the virtues and character that built this great company.” According to Press, Toyoda did not wish for him to speak out on his behalf, but he could not stand idle any longer.

Toyoda blames the company’s problems on a rapid rate of growth, and has vowed to put in place new quality controls, and heed more input from its American executives on matters of recalls.

– By: Stephen Calogera

Source: Free Press

Jim Press, who will retire as deputy CEO by the end of this year, owes almost $1 million in back taxes and is being sued by his credit union for defaulting on a $609,000 loan, according to records obtained by The Detroit News.

The IRS has filed a tax lien for $947,409.63 on a house Press owns in Birmingham, Michigan. On the other hand, Western Federal Credit Union says that Press has defaulted on a $609,286 loan. The company filed a suit against him earlier this summer.

The Detroit News says that Press blames his money problems on Chrysler’s decision to end year-end bonuses for executives.

In a letter sent to Western Federal Credit Union Press wrote: In this terrible credit environment, I have exhausted other avenues of getting a new loan which would allow me to pay you off. My last and least desirable alternative is to notify you of the situation.”

“I am not able to make the November and February payments due to the elimination of bonuses, which was just announced by my company,” Press wrote.

Press and Chrysler spokeswoman Shawn Morgan declined comment.

- By: Stephen Calogera

Source: Detroit News

According to a report by The Wall Street Journal, Chrysler’s Deputy CEO Jim Press is planning on leaving the company by the end of 2009. Sources told the publications that Press, 62, will leave before the end of December.

Chrysler spokesman Gualberto Ranieri declined to comment on the report.

When Fiat took control of Chrysler Group after it emerged from bankruptcy, Press stayed on as an adviser to new CEO Sergio Marchionne. Press joined Chrysler in 2007 after working for Toyota for 37 years, reports Automotive News.

- By: Omar Rana

Today General Motors CEO Fritz Henderson and Chrysler president Jim Press defended their decision to cut a total of almost 3,000 dealers. The two executives submitted their prepared remarks to the Senate Commerce Committee ahead of a hearing scheduled for this afternoon.

The “decision about which of the company’s 3,181 dealers would be brought forward to the new company was gut wrenching, but it was an absolutely necessary part of our effort to assure the long-term viability of the new Chrysler Group,” Chrysler’s Jim Press said.

Henderson said that GM could reduce 2,300 to 2,600 dealers leaving it with 3,500 to 3,800 dealers by the end of 2009.

“This is our last chance to get it right — to fix permanently those parts of the business that have diverted us from consistently building winning cars and trucks and the consumer experience to match. Because of today’s global, economic crisis we are out of time and money,” Henderson said in his testimony.

Nonetheless, Senators are looking more from GM and Chrysler.

“Nearly 2,000 dealerships are closing throughout America and over 100,000 jobs are at risk,” Rockefeller said. “We have to do better. We can save some of these jobs and help these communities,” said Senator Jay Rockefeller, D-W.Va., chairman of the Senate Commerce Committee.

Rockefeller said that the two automakers ”should not be allowed to take taxpayer funds for a bailout and then leave local dealers and their customers to fend for themselves with no real notice and no real help. That is just plain wrong.”

What are your thoughts?

- By: Omar Rana

Source: Detroit News

During our live blogging session earlier this morning, Chrysler CEO Bob Nardelli said that he will be stepping down from his position after the company emerges from bankruptcy. He made it clear that the decision was his own and that the U.S. Treasury had not asked him to resign.

According to AutoObserver, Nardelli will return as an advisor to private equity firm Cerberus Capital Management, which owned Chrysler before the Fiat deal was announced earlier today.

Former CEO Tom LaSorda, who is currently vice chairman and president, said that he will be retiring. While LaSorda did not provide an official date, he said that he will not stick around and watch Chrysler go through Chapter 11 bankruptcy.

Chrysler’s President Jim Press said that he has had no discussion regarding his future role in Chrysler. 

Earlier this morning we learned that following Chapt. 11, the U.S. government will select six board members, while Fiat will select three. The new board will then select a new CEO for the new alliance.

- By: Omar Rana

Source: AutoObserver

While some of you are wondering where our visitor zermatt is (zermatt being a very analytical individual who we feel is a great addition to our community), we’re guessing he’s unwinding after a very tiring visit to Detroit on Monday where President Obama’s auto task force visited General Motors and Chrysler.

Either way, the auto task force has left Detroit and we’re all left wondering – “so what did they think?” Are they going to call back $17.4 billion or are GM and Chrysler going to get additional loans that can total up to $21.6 billion.

According to AutoObserver, the auto task force, none of whom have any auto industry experience and happen to own foreign made vehicles, are not providing any hint about their thoughts on their Detroit visit or what they plan on doing for GM and Chrysler’s financial situation once the March 31 deadline arrives.

All we know is they visited GM executives and test drove a Chevrolet Volt, visited Chrysler’s Nardelli/LaSorda/Press and a Dodge pickup plant, followed by a two-hour meeting with UAW President Ron Gettlefinger.

Obama’s administration told reporters that the trip “was a success and the White House understands the need for urgency and deliberation and the task force will work ‘around the clock’ on industry issues.”

GM’s said that it was “pleased to host the task force so they could experience firsthand the new products and technologies that are an integral part of GM’s near- and long-term competitiveness. We look forward to continuing to support the efforts of the task force as they move quickly to address their critical tasks.”

Guess we’ll all find out the outcome on March 31.

Source: AutoObserver