A friend of mine came to Japan to visit The Tokyo Motor Show from U.S.A. He supplies me valuable information about the progress of world auto industry almost every day. As he sent me auto industry news as usual, I never thought of that he was in Tokyo. I received an e-mail from him informing me that he was in Tokyo. I met him this afternoon ten months after we had a lunch together in New York in December, last year.
As soon as we started talks, we realized that the world auto industry has changed in many respects in these ten months. He was the opinion of that the most active top executives during these months are Jacques Nasser, COO of Ford, Jurgen E. Schrempp, Chairman of DaimlerChrysler, Ferdinand Piechi, Chairman of Volkswagen and Rui Schweitzer, Chairman of Renault.
As soon as Nasser became COO, he recruited competent executives from outside source (such as from BMW) and bought the car division of Volvo. He is pushing forward the company's world wide restructuring plan named as "Ford 2000." Ford failed in South America and its European arm became comparatively weak against European manufacturers. But Ford has been successful in North America resulting in passing over GM very soon in production and sales of passenger cars there. He has a strong desire to get Subaru. It is said that he is now working on M and A with it.
Schrempp, chairman of DaimlerChrysler, got recently a full control of company, as Eaton, former chairman of Chrysler and co-chairman of DaimlerChrysler, will retire the next year as he said at the time of merger with Mercedes Benz. Furthermore, Thomas T. Stallkamp, President of DaimlerChrysler U.S.A., who contributed to their successful merger, resigned this fall. It is said Schrempp has interests in Nissan Diesel Company. (The last merger talks with it failed to get results.) My friend denied abruptly the rumors that DaimlerChrysler would move their headquarters to U.S.A.
Piechi, chairman of VW, is calm nowadays as he got Bugatti, Bentley. Lamborghini and Rolls-Royce..
Schweitzer, Chairman of Renault, has succeeded in revitalizing Nissan's Summerland plant in UK by allotting capital from his investment to Nissan.The plant has suffered from shortage of capital for renewing its production model. It was reported early this year that the plant tried to ask Premier Blair for aid from the government. (It was said one of the aims of Renault's investment to Nissan was to get this plant.)
Meanwhile he pointed out the actions by Jack Smith who would retire the next year and Wagoner, a young COO were too slow. The e-GM plan which was announced six months ago will never succeed, he said. Because there are too many barriers within the company. But he evaluated their latest strategy as realistic which is to utilize Suzuki and Isuzu at most in order to develop and manufacture small cars. He also said much attentions should be paid on their relation with Daewoo and also a joint venture factory in China. GM is going to start the production of high class cars at the plant. The successor to Jack Smith will be Wagoner and Ronald E. Zarella, President of North American Operation will become COO, he said. GM has a strong desire to get Subaru.
BMW is now in chaos. Due to the huge loss of Rover, the company was divided into two groups. A group who insisted to cut Rover was expelled from the company. But it lost many competent directors and managers.
We have not much difference of opinions today.