The day after DaimlerChrysler AG said it might sell Chrysler, the American division's CEO Tom LaSorda gathered 200 of his top executives in the vast auditorium at the automaker's Auburn Hills headquarters. Chrysler's fate lies in their hands, he told them, according to managers who attended the meeting. "If we don't deliver, all bets are off."
But LaSorda warned them it wouldn't be easy to turn the company around. As Chrysler embarks on a second restructuring in six years, its management will be dealing with recalcitrant union representatives, demoralized employees and cutthroat competition.
Job cuts had been expected after Chrysler's results slumped in 2006. But employees were stunned Wednesday when DaimlerChrysler CEO Dieter Zetsche -- who ran Chrysler for nearly five years -- confirmed that the Stuttgart, Germany-based company was considering all options for its U.S. division, including a sale.
"The bombshell was the talk about the possibility of getting sold," said a salaried employee.
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