Chrysler Group COO Tom LaSorda Frames 'Moment of Opportunity' for Young Leaders to Shape the Future of the Automotive Industry

- LaSorda addresses engineering students at Kettering University during DaimlerChrysler Day - Challenges students entering the automotive industry to bring "the right skills, the right mix of experiences and the right attitude" - Encourages future industry leaders to embrace three key values: seek challenges, become fully flexible and understand and embrace diversity

FLINT, Mich., Aug. 17 -- In an address today, Tom LaSorda, Chief Operating Officer of the Chrysler Group, told students and faculty during DaimlerChrysler Day at Kettering University in Flint, Michigan, that there was never a better time to be in the auto industry.

"Out of this relentless storm of change, we're emerging as one of the most dynamic and innovative industries on the planet. As such, you face an unprecedented 'moment of opportunity' -- an opportunity to affect the future of an industry you truly love," he explained.

LaSorda encouraged students to remain positive about the future of the automotive industry.

"Many are still struggling to understand the auto industry that's emerging from this period of turmoil and change," he said. "That's evidenced by the many books and articles reporting a gloomy future for the industry, especially for the so-called domestics in Detroit."

"But rumors of our demise are exaggerated," he continued. "Never has the industry been as open to change and transformation as it is right now. Never has the industry been so close to pursuing nearly total re-invention. And never has the industry been as exciting for young, talented people just like you ... people who want to have a profound impact on the industry's future ... people who have the right skills, the right mix of experiences and the right attitude."

Flanked by four DaimlerChrysler Vice President Kettering alumni, LaSorda discussed the importance of schools like Kettering in developing future leaders of the industry.

"Kettering's emphasis on real-world knowledge through co-operative experiences is the right approach for 'arming' future technical and business leaders," he said.

"But, a viable, sustainable and successful career in the emerging automotive industry requires more."

LaSorda then outlined three key values students must pursue in their lives and careers: seek challenges, become fully flexible and understand and embrace diversity.

LaSorda related the story of Chrysler Group engineers who challenged themselves to out-innovate a supplier by improving the design of a critical part, in effect improving its quality at a price that was 70% lower than the lowest supplier quote.

"In the 2006 model year, we'll realize that savings on 2.8 million vehicles," LaSorda said. "That's not continuous improvement. That's breakthrough improvement. And it represents precisely what we're challenging our people to achieve, because we're quite sure, if properly challenged, they'll exceed our wildest expectations, and those of our customers."

To adopt the second key value -- "to become fully flexible" -- LaSorda encouraged students to embrace change. "You must learn from, but become unconstrained, by the approaches and processes of the past," he said. "And you must drive transformation -- your company's and your own -- by constant re-tooling."

LaSorda illustrated this point with an example from DaimlerChrysler's World Engine facility under development in Dundee, Michigan, in which two recent university engineering graduates took jobs as machine operators at the plant.

"Our Dundee World Engine plant represents the state-of-the-art for lean, flexible manufacturing," LaSorda said. "Their willingness to be flexible, to be unconstrained by traditional expectations, will expose them to ideas and applications found in very few places, uniquely complementing their technical knowledge."

The third value LaSorda encouraged students to pursue is to understand and embrace diversity.

"I use the word understand because it seems this very important concept called diversity suffers from too many opinions about what it means, especially in a business context," LaSorda said.

He continued, "Diversity is not a numbers game. It's not a program. It's a competitive imperative. Diversity is not just about hiring people who look like your customers. It's developing a well-rounded organization and culture with the capacity to anticipate changing expectations from anywhere in the marketplace. It's vital to the success of a business, which requires constant innovation in order to survive and thrive."

LaSorda pointed to the Chrysler Group's diversity initiatives, "Our approach to diversity is enterprise-wide. In other words, we manage diversity like it was part of the business, with focus, with discipline and with accountability. It's that important."

LaSorda concluded his remarks restating the opportunities students entering the automotive industry face today.

"Those who have the best opportunity to bring form, shape and meaning to this 'moment' happen to be here today. That's all of you," he said. "So, build the lives and careers you want. Seek challenge. Be flexible. Understand and embrace diversity. Most importantly, have fun, and help to create the industry of your dreams."