Thomas W. LaSorda
Encyclopedia
Thomas W. LaSorda, often known as Tom LaSorda, (born July 24, 1954, in Windsor
, Ontario
, Canada
) is a Canadian
-American
automobile industry executive who served as CEO
and President of the Chrysler Group.
LaSorda is the third generation of his family to work for Chrysler, being the son of a CAW union local official. He graduated from the University of Windsor
in 1977 with a dual degree (Bachelor of Arts
and a Bachelor of Commerce
), and earned an MBA in 1980.
In 1977 he joined General Motors
, working chiefly in manufacturing. He helped to launch the GM-Suzuki joint venture plant, CAMI Automotive
, in Ingersoll, Ontario
and he also served as president of Opel
's Eisenach plant in eastern Germany
.
In 2000, he joined the Chrysler Group as a Senior Vice President. He was first appointed to the board in 2004 when he became COO
. He was the architect of Chrysler's Toledo Supplier Park in Ohio
, which integrated suppliers in a close relationship with Chrysler to produce the Jeep Wrangler
.
On January 1, 2006, LaSorda succeeded Dieter Zetsche
, a German from the parent company DaimlerChrysler (now Daimler AG), as Chrysler's CEO, as Zetsche was promoted to chief executive of DaimlerChrysler Group as a reward for the turnaround of Chrysler. That same year, LaSorda became a U.S. citizen, while retaining his Canadian citizenship.
On August 5, 2007, there was the de-merger of Daimler and Chrysler, the latter being 80% purchased by Cerberus Capital Management
. In the resulting management shuffle, LaSorda was relegated to the number two position as President and Vice Chairman of Chrysler LLC, with Bob Nardelli succeeding him as Chairman and Chief Executive Officer
. Despite the appointment of a second Vice Chairman, Jim Press, LaSorda stayed on.
His titles at Chrysler LLC officially stated that he was in charge of manufacturing, procurement and supply, employee relations, global business development and alliances since August 2007. Despite his expertise in manufacturing, however, LaSorda's new role in the company was largely to find a new partner or buyer for Chrysler, leading to speculation that Cerberus Capital was less interested in rebuilding the auto manufacturer than it was to turning profit though a leveraged buyout
.
Out of the many auto companies that LaSorda contacted, only Fiat
agreed to a partnership. LaSorda counts current Fiat/Chrysler CEO Sergio Marchionne
, also Canadian raised and educated, as a close friend.
LaSorda told the Canadian House of Commons
finance committee that the initial GM-CAW deal was insufficient and that Chrysler would demand an hourly wage cut of $20, breaking the CAW
's negotiating pattern set by GM. He suggested that Chrysler may withdraw from Canada if it fails to achieve more substantial cost savings from the CAW. Fiat CEO Sergio Marchionne
has also threatened to walk away from the merger if the CAW did not make concessions, which the union eventually agreed to by cutting benefits. Chrysler LLC has since filed for bankruptcy, though Fiat would continue to implement the strategic alliance.
While Fiat asked LaSorda to stay on, he instead opted to step down as President and Vice-Chairman and retired effective May 1, 2009, as Chrysler LLC filed for bankruptcy.
Windsor, Ontario
Windsor is the southernmost city in Canada and is located in Southwestern Ontario at the western end of the heavily populated Quebec City – Windsor Corridor. It is within Essex County, Ontario, although administratively separated from the county government. Separated by the Detroit River, Windsor...
, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
) is a Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
-American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
automobile industry executive who served as CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
and President of the Chrysler Group.
LaSorda is the third generation of his family to work for Chrysler, being the son of a CAW union local official. He graduated from the University of Windsor
University of Windsor
The University of Windsor is a public comprehensive and research university in Windsor, Ontario, Canada. It is Canada's southernmost university. It has a student population of approximately 15,000 full-time and part-time undergraduate students and over 1000 graduate students...
in 1977 with a dual degree (Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
and a Bachelor of Commerce
Bachelor of Commerce
A Bachelor of Commerce is an undergraduate degree in commerce and related subjects. The degree is also known as the Bachelor of Commerce and Administration, or BCA...
), and earned an MBA in 1980.
In 1977 he joined General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, working chiefly in manufacturing. He helped to launch the GM-Suzuki joint venture plant, CAMI Automotive
CAMI Automotive
CAMI Automotive, originally known as Canadian Automotive Manufacturing Inc., was an independently incorporated joint venture of automobile manufacturing in Ingersoll, Ontario, Canada and formed the third step of GM's three-pronged initiative of the mid-1980s to capture and practice the Japanese...
, in Ingersoll, Ontario
Ingersoll, Ontario
Ingersoll is a town in Oxford County on the Thames River in southwestern Ontario, Canada. The nearest cities are Woodstock to the east and London to the west....
and he also served as president of Opel
Opel
Adam Opel AG, generally shortened to Opel, is a German automobile company founded by Adam Opel in 1862. Opel has been building automobiles since 1899, and became an Aktiengesellschaft in 1929...
's Eisenach plant in eastern Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
.
In 2000, he joined the Chrysler Group as a Senior Vice President. He was first appointed to the board in 2004 when he became COO
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
. He was the architect of Chrysler's Toledo Supplier Park in Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
, which integrated suppliers in a close relationship with Chrysler to produce the Jeep Wrangler
Jeep Wrangler
The Jeep Wrangler is a subcompact four-wheel drive sport utility vehicle and an off-road vehicle manufactured by American automaker Chrysler, under its Jeep marque – and now in its fourth generation. It is a successor to the famous World War II 'Jeep' vehicle by way of the Willys civilian...
.
On January 1, 2006, LaSorda succeeded Dieter Zetsche
Dieter Zetsche
Dieter Zetsche is a German businessman and the Chairman of Daimler AG and Head of Mercedes-Benz Cars since 2006 as well as member of the company's Board of Management since 1998....
, a German from the parent company DaimlerChrysler (now Daimler AG), as Chrysler's CEO, as Zetsche was promoted to chief executive of DaimlerChrysler Group as a reward for the turnaround of Chrysler. That same year, LaSorda became a U.S. citizen, while retaining his Canadian citizenship.
On August 5, 2007, there was the de-merger of Daimler and Chrysler, the latter being 80% purchased by Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
. In the resulting management shuffle, LaSorda was relegated to the number two position as President and Vice Chairman of Chrysler LLC, with Bob Nardelli succeeding him as Chairman and Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
. Despite the appointment of a second Vice Chairman, Jim Press, LaSorda stayed on.
His titles at Chrysler LLC officially stated that he was in charge of manufacturing, procurement and supply, employee relations, global business development and alliances since August 2007. Despite his expertise in manufacturing, however, LaSorda's new role in the company was largely to find a new partner or buyer for Chrysler, leading to speculation that Cerberus Capital was less interested in rebuilding the auto manufacturer than it was to turning profit though a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
.
Out of the many auto companies that LaSorda contacted, only Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
agreed to a partnership. LaSorda counts current Fiat/Chrysler CEO Sergio Marchionne
Sergio Marchionne
Sergio Marchionne is an international manager best known for his turnaround of the Italian automotive group Fiat and, more recently, for managing the US automotive group Chrysler from bankruptcy to profitability...
, also Canadian raised and educated, as a close friend.
LaSorda told the Canadian House of Commons
Canadian House of Commons
The House of Commons of Canada is a component of the Parliament of Canada, along with the Sovereign and the Senate. The House of Commons is a democratically elected body, consisting of 308 members known as Members of Parliament...
finance committee that the initial GM-CAW deal was insufficient and that Chrysler would demand an hourly wage cut of $20, breaking the CAW
Canadian Auto Workers
The Canadian Auto Workers is one of Canada's largest and highest profile social unions. While rooted in Ontario's large auto plants of Windsor, Brampton, Oakville, St...
's negotiating pattern set by GM. He suggested that Chrysler may withdraw from Canada if it fails to achieve more substantial cost savings from the CAW. Fiat CEO Sergio Marchionne
Sergio Marchionne
Sergio Marchionne is an international manager best known for his turnaround of the Italian automotive group Fiat and, more recently, for managing the US automotive group Chrysler from bankruptcy to profitability...
has also threatened to walk away from the merger if the CAW did not make concessions, which the union eventually agreed to by cutting benefits. Chrysler LLC has since filed for bankruptcy, though Fiat would continue to implement the strategic alliance.
While Fiat asked LaSorda to stay on, he instead opted to step down as President and Vice-Chairman and retired effective May 1, 2009, as Chrysler LLC filed for bankruptcy.