Jim Press leaves Toyota to join Chrysler. I am surprised. I would imagine he is getting a huge amount of money. And I would guess it will encourage those that think you have to massively overpay executives or lose them to companies that will overpay them. I don’t think it is wise to pay huge sums to executives. If that means you lose some, fine, continue to manage your system well and things will still work out fine for you. And maybe pay has nothing to do with the move.
Press will team with current Vice Chairman and President Tom LaSorda as Chrysler’s executive team makes a push to wring out landmark health-care and pension concessions from the United Auto Workers.
I agree getting Press could help Chrysler a great deal. If they will actually let him change the system. If they just want to hire a couple of executives and basically keep the same mentality in place it won’t work. For those convinced it must be Chrysler sees the errors of its past management I would caution you. Typical management practice is to hire people from companies that have been winning. So hiring Toyota people is no real indication that Chrysler is thinking any differently than they have before – it might or it might not.