Chrysler is prepared to stand on its own again after nine years but will still work with its former parent in developing advanced technologies, Chrysler's chief executive said.
Tom LaSorda met reporters on Tuesday at the company's headquarters in Auburn Hills a day after DaimlerChrysler AG announced it was selling an 80.1 percent interest in Chrysler to private equity firm Cerberus Capital Management LP.
Chrysler intends to continue to work with Germany-based Daimler and its various divisions on projects including clean-fuel programs, LaSorda said.
The announcement on Monday brought to a close the US$36 billion "merger of equals" that in 1998 attempted to create the ultimate global automotive powerhouse.
LaSorda said he was excited at the prospect of building a North American car company with Cerberus.
"We're going to rebound and come back," LaSorda said. "We're on our way as a stand-alone company."
He said going private will mean running the company "the way we want to run it." He stopped short of criticizing the Daimler side of Chrysler but said being independent will allow the company to take a longer-term outlook.
Still, he said, that will not prevent Chrysler from tapping Daimler's technological resources. For instance, the companies will continue to develop a new line of clean-burning diesel engines.
Chrysler also is seeking the guidance of Wolfgang Bernhard, its former chief operating officer who recently joined Cerberus as a senior executive.
LaSorda, who planned to meet with Bernhard later on Tuesday, said Bernhard can help with product development and the cost side of the business.
LaSorda said Cerberus has endorsed Chrysler's restructuring plan announced in February, which LaSorda called the company's "bible."
"They'll be patient as we continue to move this company toward profitability," LaSorda said. "They see growth here."
LaSorda said Cerberus' investment and global roster of employees will also help Chrysler continue or create other alliances where it makes sense, particularly to help expand into untapped or undertapped markets such as southeast Asia and Russia.
He was also pleased that the Cerberus deal had the support of union leaders, first from United Auto Workers president Ron Gettelfinger and then from Canadian Auto Workers president Buzz Hargrove. Both initially opposed a sale to a private equity firm because of an expectation that jobs would be cut to boost profits for investors.
Hargrove met LaSorda on Tuesday morning and Cerberus leaders to discuss details of the sale. Hargrove said afterward that he no longer thought the firm's goal was to "slice and dice" Chrysler.
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