Posted on 03/18/2002 12:48:51 PM PST by GeneD
NEW YORK - Retirement ill suits the legendary Lee Iacocca, but he finds himself unable to reclaim his former throne. So, like Shakespeare's King Lear, he rages at the people who inherited his kingdom, these upstarts who flatter him but spurn his advice and shunt him aside. It's an old story and it will end in the usual way, with the former chief executive roaring in vain as his successors go about their business without his input.
Iacocca, the former Chrysler chairman, is now free to talk after the expiration of a five-year vow of silence that was part of the settlement relating to Kirk Kerkorian's attempted buyout of Chrysler in 1995, which Iacocca had supported. The 77-year-old Iacocca vented at length in yesterday's Detroit News, and his main target was DaimlerChrysler Chairman Juergen Schrempp, whose Daimler-Benz acquired Chrysler in 1998 from Iacocca's chosen successor, Bob Eaton.
Iacocca, who retired from Chrysler in 1992, now says that "going through a process that ended up with picking Eaton" was "the biggest mistake in my life." He says he should have chosen Bob Lutz, then a Chrysler executive, now at General Motors. At the time, however, Iacocca and Lutz were not getting along. "Lutz sure as hell would have been a lot better than what I did," Iacocca ruefully told the News. "I realized after Eaton came in that Lutz would eat him for lunch."
Chrysler began floundering soon after it was sold to Daimler. Seeing this, Iacocca approached Schrempp and offered to play a role in helping to turn his old firm around. Iacocca of course had done that before: He became internationally famous in the 1980s for steering Chrysler back into the black after it was forced to seek a bailout from the U.S. government just to survive. Perhaps Iacocca could work that same magic again. Certainly he was eager to try. "I'd give my right arm to do it, to be honest," he told the News. "Chrysler was my life. I really feel bad where it is today."
Schrempp apparently was willing to listen to Iacocca's advice, but unwilling to give the American a major role in the firm. "Schrempp doesn't want to be upstaged by even the aura of having me around," Iacocca told the News. "The guy doesn't want me, but I think I could give them some credibility. Who could represent Chrysler better than me?"
Nobody, but that's not the point. It's Schrempp's firm now, not Iacocca's. It seems very unlikely that Iacocca would have settled for being a mere figurehead, a TV pitchman for Schrempp's vision. Iacocca wants real power, and what chief executive in Schrempp's position would be willing to cede so much authority to such a high-profile underling?
It may well be that Iacocca is the best person to lead Chrysler back to profitability, but the world is not going to find out anytime soon--not unless Kerkorian wants to attempt a buyout of DaimlerChrysler and install his friend Lee in Schrempp's corner office in Stuttgart. Until that unlikely moment arrives, Iacocca will rage in vain against the perfidy of these young upstarts who refuse to be ruled by the retired lord of the realm. And they will keep right on ignoring him.
He's right: He should have appointed Lutz. By all accounts, Lutz was shoved aside because Iacocca didn't want someone even more popular than him to get the top job.
You may have never heard of Lutz, but pick up any car magazine and you'll find him idolized. People who appreciate good car design love Lutz; if you want an "interesting" car, he's one of the top people to make it for you.
Unfortunately, you paid in quality control, with Chrysler having easily the worst QC among the big three. In late 1999, I rented a brand new big Chrysler, one of the designs created during Lutz's tenure. I found it fantastic to drive, with great styling, but with 5550 miles on the clock the left power window mechanism was already grinding.
To be fair to Lutz, that was a problem that existed in Chrysler before Lutz. Some of the Iacocca K-cars were so bad that ... well, never mind. I think you get the idea.
Lutz is now at GM, attempting to breathe some new life into the company, with some of the industry's most mouldy products. I wish him luck.
D
Lutz is credited for a lot of the recent, pre-Daimler innovations at Chrysler.
But, Can Bob Lutz take GM out of its black hole?
(by Brock Yates, in the March 2002 Car and Driver)
It's a great read, especially for those of us who remember when GM was run by car guys.
2002: Lee who?
2012: Who is Jack Welch?
--- Clemenza (Proud owner of a 1999 GM Saturn)
That article looked interesting, but the second page isn't loading right now, so I'll have to finish it later. Thanks for the heads up.
In the mean time, Mamzelle's comment expresses my sentiments with a pithy elegance that leaves me virtually speechless :-).
D
Even though I hate 'em, if I were Lutz, I'd create an interesting SUV at the mid-sized (Toyota Camry) price point. People like SUVs and have been deserting cars in droves for them. Why cater to a declining market (family sedans)?
The people who designed the Aztek had a good overall idea, but bungled execution horribly, creating a creature so hideous even veteran SUV lovers (who are surely not against ugly vehicles) turned their heads away in shame. I checked out the Aztek when it first came out and discovered it used appallingly low quality materials compared to its competition.
Something on the same lines but with an attractive look and higher quality, might sell well.
D
Oh yeah, I know what you mean.
Turns out that it is based on the Montana minivan platform. They had some neat concepts, like built-in storage compartments in the back - except of course they used the cheapest plastic, with no hinges, just little tabs that stuck out to catch the plastic wall. Pathetic.
I thought the tent was a cool idea, though. Something like that, executed with quality materials and finish, might have some promise.
Unfortunately, I don't think GM understands the concept of using quality materials to create a nice atmosphere. I don't mean this thing has to be a Mercedes-Benz, but it could at least be a Honda Accord or Toyota Camry.
D
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