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October 23, 2007

Hats Off to the Two Jims

I'm excited about two changes in management at two American car companies: Ford Motor Co. and Chrysler LLC, now a U.S. company mainly owned by private equity firm Cerberus Capital Management. Two men named Jim have moved from Toyota to these two U.S. automakers. Both have been hired to act as catalysts of change in product development and new-vehicle marketing and advertising. Why are the appointments so interesting?

The two Jims left big jobs at Toyota in California and New York, respectively, to move to Ford and Chrysler headquarters near Detroit—in the middle of the Rust Belt. Jim Lentz, executive vice president of Toyota Motor Sales USA, said the move indicates "how highly the industry prizes the talent, knowledge and experience" of Toyota executives. It also shows that top automotive industry talent at Toyota is willing to move from a great car company to two once-great companies that need a boost.

Neither of the Jims left Toyota out of the goodness of his heart. Nor did the Jims leave their jobs because they missed working for American companies that make American cars and trucks. Both men, I'm sure, have been offered large salaries and stock options. Both have been given responsibility to help remold the images of Ford and Chrysler—and to create enthusiasm for Ford's Lincoln, Mercury,Ford, Land Rover, Volvo and Jaguar brands and for Chrysler's Jeep, Dodge and Chrysler nameplates.

Jim Press, 60, became co-president and vice chairman of Chrysler about a month ago. The more senior of the two Jims is nearly a legend in the automotive world. He's always been a car guy. Press built his first go-cart at age seven, owned his first car at 12 and began washing cars at his family's auto dealership in Kansas when he was 13. What's more amazing, according to media blogs, is that he worked for Toyota for 37 years and never owned a Toyota or Lexus model—although he says he owns a Yamaha motorcycle. (I'm sure that as a Toyota official, he has driven many Toyota and Lexus vehicles). Press is known for having led Toyota to its prominent place in the U.S. market and for bringing Lexus to the forefront of luxury brands in terms of initial and long-term quality, customer satisfaction and sales in the U.S. This savvy marketer most recently was president of Toyota North America operations in New York, and was the only American on Toyota's board of directors.


Jim Farley, 45, is known for spearheading Scion, Toyota's entry-level youth brand, which he made attractive to younger buyers by offering custom options and advertising it on the Internet. His career at Toyota spans 17 years. Most recently, Farley was general manager of Lexus. He will become Ford's vice president of marketing and communications in mid-November. He'll report directly to Ford's chief, Alan Mulally, who previously was a senior executive at Boeing. Farley's first car was a 1966 Mustang, which he rebuilt when he was 15 and drove from California to Michigan.

So what are the benefits of each Jim to their new employers?

Press' Benefits: Chrysler can learn a lot from Jim Press. Toyota and Lexus dealers say that Press is a great listener and always made sure their input was followed up with a visit from Toyota engineers from Japan to find out what customers wanted in their cars. Press, who shares the presidency of Chrysler with Tom LaSorda, recently said he "welcomes participating in the resurgence of a true American icon here and around the world." In a recent interview with a Detroit daily, Press hinted at some changes by using Jeep as an example of where the company is headed. Jeep's rugged, off-road image needs to be maintained even as it moves into new segments, Press said, noting, "If you want a crossover SUV that's really an SUV, it's going to be a Jeep." He reports to Chrysler's new CEO Robert Nardelli, former head of The Home Depot, who also calls himself a car guy and claims that his first car was a Dodge Dart.

Farley's Benefits: Jim Farley helped create Scion, which he once called an "Urban Brand." Farley's advertising strategies have helped lower the average age of Toyota buyers overall, according to J.D. Power and Associates research. As the most recent leader of Lexus in the U.S., Farley also put marketing punch behind the brand's hybrid flagship LS 600h L sedan, which is loaded with Toyota's top technology. He drove a tC while at Scion, and connects well with younger people. At Ford, he will work to connect more closely with customers through marketing, advertising, digital communications, and brand development. Also, he has been assigned to work with the global product development team to help create future cars and trucks that people want and value, according to Ford's CEO.

What can we expect from the two Jims right away? Since each of the Jims reports directly to the CEO of each automaker, it's likely that there will be quicker changes and quicker results. Even at this juncture, new ideas will be put in place faster to sell and promote new cars and trucks—so the best advertising out there won't be just about BMWs, Hondas or Toyotas. In the long-term, it also means future products from Ford and Chrysler will be geared to what younger consumers and car enthusiasts want. In other words, we'll see more hot models!

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