Spy Shots: '07 Ford Escape
2007 Ford Escape
Chrysler Revamps Healthcare Benefits
Chrysler Group CEO Tom LaSorda will see a nine-fold increase in his health insurance premiums, as part of sweeping changes in medical care at the DaimlerChrysler AG subsidiary. Like all Chrysler salaried employees, LaSorda is currently paying $1000 a year towards his medical coverage, plus various out-of-pocket expenses. That will jump to $9000 under the new policies, which will impact about 17,600 retirees and 14,900 active white-collar workers. "We all have to do our part going forward," LaSorda said, in a letter addressed to Chrysler workers, "and we have to do it in a way that is innovative, competitive, equitable, and provides a long-term solution."
In 2005, Chrysler laid out $2.2 billion to cover
healthcare for its white- and blue-collar workers - significantly more than its
$1.8 billion profit. Overall costs have nearly doubled since 2000, and are
expected to climb to $2.3 billion this year. Like its cross-town rivals, the
number-three domestic automaker is struggling to reign in those costs.
The company's new approach will take into account such factors as age, income, and rank. Administrative workers will see little to no increase, but among 9400 mid-level managers, healthcare premiums will jump an average $450 annually. Among executives, the increase will run $1500, and at the top level of the company, senior execs, such as CEO LaSorda, will pay most or all of their own insurance premiums, currently $9000 annually. White-collar retirees, meanwhile, will pay more, as well. The biggest impact will be on those under the age of 65, who will pay a share of increasing medical coverage, depending on how much they made at the time they retired.
Chrysler "may have to revisit" the idea of increasing co-pays and deductibles in the future, said Kate Kohn-Parrott, the director of the automaker's healthcare operations. And Chrysler is still seeking concessions from its union workers similar to those granted rivals General Motors and Ford Motor Co. last year. -TCC Team
Chrysler Tempers Bad News with Good
There should be no need for white-collar layoffs at the Chrysler Group, despite the headcount reductions mandated by the automaker's German-based parent, DaimlerChrysler AG. In January, DC CEO Dieter Zetsche announced plans to trim 6000 salaried slots in the coming year. But Chrysler's chief executive, Tom LaSorda, revealed a "no-layoff strategy," since it appears the American side of the company can meet its unspecified job cut target through voluntary reductions. That announcement came the same day Chrysler revealed a new, white-collar healthcare program that could see significant increases in salaried employee costs, depending on age, income, and corporate rank. But as another sop to an angry and frustrated workforce, Chrysler officials revealed a much-expanded employee leasing program, which will provide thousands more white-collar workers access to up to two cars annually. "We think this will be a real big morale booster," asserted Chrysler's top spokesman, Jason Vines. -TCC Team
Zetsche Focuses on Bribery Scandal
by Joseph Szczesny
New CEO sets the Schrempp era aside.
Chrysler Names Gillies Design VP
The lead designer of Chrysler's brassy 300C/Magnum siblings is getting a big promotion. Starting in April, you can call Ralph Gillies vice president of Jeep/Truck and Component Design. Gillies will replace Ricardo Aneiros. A Chrysler employee since 1992, Gillies is credited with the design of the Chrysler sedan and Dodge wagon, which have captured numerous Car of the Year awards.
UnitedAuto President DiFeo Retires, Kurnick Promoted
One of the UnitedAuto Group's (UAG) first dealers, Samuel X. DiFeo, is retiring as president and COO of the second-ranked megadealership network. DiFeo, 56, said he would remain active as a UAG consultant for five years and assist with its international operations. DiFeo's group of BMW and Japanese-brand dealerships in northern New Jersey were among the first to be purchased by UAG's predecessor group, Penske Corp., in the mid-1990s.
UnitedAuto Group Chairman and CEO,
Roger S. Penske, said that an executive vice president of the Bloomfield Hills,
Michigan-based company, Robert H. Kurnick, Jr., has been appointed vice
chairman. Kurnick, 44, also serves as general counsel of UAG and president
of Penske Corp, which owns a privately held group of dealerships in southern
Lexus Prevails for 48-Year Ford Dealer
A rare Ford dealer with a Lexus
franchise is giving up the Ford franchise April 1 after a 48-year run in the
FROM THE SOURCE headlines from the latest press releases
American Suzuki Motor Corporation (ASMC) today announced the additions of Gene Brown and Chuck Halper to its talented executive management team. With more than five decades combined of industry knowledge and experience, Brown and Halper arrive at ASMC at a time of record growth. In 2005, Suzuki sold 82,101 vehicles - the most in company history. This year, ASMC continues its impressive sales growth, selling an all-time monthly best 7210 and 8542 vehicles in January and February respectively.
|American Axle & Mfr. Holdings Inc.||AXL||15.71|
|Ballard Power Systems Inc.||BLDP||6.22|
|DaimlerChrysler AG (ADR)||DCX||57.86|
|Dura Automotive Systems||DRRA||2.10|
|Ford Motor Company||F||7.85|
|General Motors Corporation||GM||21.50|
|Goodyear Tire & Rubber||GT||13.27|
|Honda Motor Co. Ltd. (ADR)||HMC||30.66|
|Johnson Controls Inc.||JCI||74.57|
|Magna International Inc.||MGA||75.32|
|Nissan Motor Co. Ltd. (ADR)||NSANY||23.36|
|Sonic Automotive Inc.||SAH||27.67|
|Sirius Satellite Radio||SIRI||4.48|
|Toyota Motor Corporation (ADR)||TM||108.39|
|TRW Automotive Holdings||TRW||24.96|
|Tower Automotive Inc.||TWRAQ.PK||0.058|
|United Auto Group Inc.||UAG||44.68|
|XM Satellite Radio Hold.||XMSR||20.55|