Lutz Stays at Chrysler, but Eaton Gets His Title

12/09/96

The Associated Press reported that Chrysler Corporation has announced a reorganization at the very top levels of its management. Chrysler says that its President, Robert A. Lutz, will work with the automaker past the company's mandatory retirement age, but Chrysler Chairman Robert Eaton will take over his title. Lutz will become vice chairman overseeing product development and report to Eaton. The company said that Lutz's operational duties as president will be divided among two vice presidents, Thomas C. Gale and Francois J. Castaing.

Lutz had been expected to step down as president and chief operating officer when he reaches 65 on Feb. 12. Until now, however, Chrysler had been tight-lipped about how it would reassign Lutz's current responsibilities. The changes will take effect on Jan. 1, and will give Eaton the same titles that his counterparts at Ford and General Motors use: president, chairman and chief executive officer.

Lutz, a former Ford executive, has been credited with playing a large roll in Chrysler's return to prominence, specifically with the successful redesign of the company's pickups, minivans and sport utility vehicles.

Lutz was expected to become Chrysler's chairman when Lee Iacocca retired in 1992, but instead the board passed him over for Eaton, who was GM's European president at the time.

Eaton praised Lutz when Chrysler announced its plans last week: "I believe that Bob Lutz will go down in history as the greatest president Chrysler has ever had. He played the lead role in forming the product strategy that resulted in Chrysler having the best product lineup in the industry."

Eaton said that in his new capacity as vice chairman, Lutz will focus on "making sure we retain our product edge well into the 21st century. He will continue as a member of the office of the chairman and as a director of the company and will continue to be involved in all major decisions."'

Paul Dever -- The Auto Channel