Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 17, 1992 TAG: 9203170089
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
SOURCE: Associated Press
DATELINE: HIGHLAND PARK, MICH. LENGTH: Medium
Robert J. Eaton's appointment as chief executive marked a personal triumph for Iacocca, who plans to relinquish full control at the end of 1992. Iacocca had lobbied for the talented outsider to help steer the troubled automaker through turbulent times, just as Iacocca himself was hired to do 14 years ago.
Iacocca also apparently retained the loyalty of President Robert Lutz, widely considered the favorite to succeed him. There had been speculation that Lutz would have quit if passed over, adding to an executive brain drain that has been one of Chrysler's nagging problems in recent years.
Eaton, 52, a rising star caught in a crowd of highly regarded GM executives, had been talking with Chrysler for months.
He accepted the offer of vice chairman and chief operating officer Saturday night. He will become chief executive and chairman on Jan. 1.
"Having the chance to lead Chrysler at this particular point in time has to be the best job in the whole auto industry, period," Eaton told reporters.
The announcement capped weeks of speculation about who would replace Iacocca.
Iacocca, 67, an outspoken corporate statesman whose name became synonymous with Chrysler, will remain a director and chair the board's executive committee.
Eaton, who has spent the last four of his 29 years with GM in Europe, was responsible for generating $1.76 billion in profits last year for GM, which overall lost a record $4.5 billion.
The Chrysler board held a series of secret meetings in New York over the weekend to vote on Eaton. Iacocca said the vote was 11-0 with himself, Lutz and Chief Financial Officer Jerome B. York abstaining.
Lutz was credited with responsibility for Chrysler's biggest launch of new vehicles since the 1970s, said he accepted the reasoning for Eaton's appointment.
He said he was disappointed. But, "Being a team player, which I like to think I am, means that you don't sulk or quit when the decision is made that somebody else should be the captain of the team."
Lutz said he plans to stay at Chrysler for "as long a haul as it can be when you're age 60. I am certainly going to give this my absolute best."
Doug Laughlin, an auto industry analyst with Bear, Stearns and Co. in New York, said Lutz "would have made a great chairman," but promoting him would have meant a net loss in top management with Iacocca's retirement.
Chrysler has lost several top executives in recent years, including Chief Financial Officer Robert Miller earlier this month and former Vice Chairman Gerald Greenwald in 1990. Iacocca confirmed that Greenwald had wanted to return and was one of the "dirty dozen" under consideration.
by CNB