Chrysler boss shakes up the company

DETROIT -- With sales down sharply and pressure to generate cash before government loans run out, Chrysler CEO Sergio Marchionne shook up his executive team yesterday, replacing two of his brand managers after just four months and splitting Dodge into car and truck units.

The changes show Marchionne's penchant for moving quickly and demanding performance, industry analysts say. But it's also a sign that all is not well inside the company's sprawling headquarters complex in the Detroit suburb of Auburn Hills.

"Something went wrong here," said Gary Dilts, a former Chrysler sales executive who is now senior vice president of global automotive operations for J.D. Power and Associates. "He's going to mix and match this team until he gets the chemical balance where he wants it."

Speed is crucial for Marchionne, who also runs Italy's Fiat Group SpA. It will be at least 18 months before Chrysler can launch a new car lineup based on smart, fuel-efficient Fiat designs. Until then, the third-largest U.S. car maker must survive with its current shaky lineup.

Marchionne, who led a stunning resurgence at Fiat, replaced Peter Fong, 45, as president and CEO of the Chrysler brand and Michael Accavitti, 50, as president and CEO of Dodge.

Both men appeared with Marchionne as the company's public faces just two weeks ago at the Frankfurt Auto Show in Germany.

But the moves come just four days after Chrysler reported a 42 percent drop in September sales, compared with the same month a year earlier. Through the first nine months of the year, Chrysler sales are off 39 percent, the largest drop of any major automaker.

Among Chrysler's problems is a weak lineup of midsize cars.

The future line will feature a replacement based on a Fiat compact that will be stretched and widened to a midsize car.

Marchionne promises to introduce a new lineup filled with Fiat small and midsize cars in November.

A separate Dodge truck unit could be sold off if Chrysler needs more cash. Although sales of the Ram pickup are down 27 percent for the year, it's still Chrysler's top-selling vehicle at 143,205 through September.