Lean Leadership in marketing and sales
Why does Jim Press send dealers and co-workers into raptures at the mere mention of his name?
What is known are legends about his phenomenal attention to detail and to dealers, which is probably why CEO Bob Nardelli (the new Chrysler) hired the former Toyota North America "big boss" as president. Press (60) will manage international and North American sales, global marketing, product strategy, service and parts.
By bringing Press to Chrysler, Nardelli lands the industry's supreme icon – at least by reputation. He is a high-energy executive who focuses relentlessly on the importance of a good relationship with the retail network.
During his business trips, Press became famous for aborting trips to the airport to make an unscheduled visit to a Toyota dealership. His first stop was never the general manager's office. Instead, he went straight to the service bays to talk to the mechanics and find out what was really happening with the company's cars.
Above all, he is a good listener, and according to Chrysler's demoralized dealers, for years no one from headquarters had sat down and really listened to their concerns.
Tom La Sorda, former Chrysler CEO and now vice chairman, tried to repair those relationships last December. He fired the unpopular Joe Eberhardt, global sales chief, and cut production to reduce the large inventories that were devouring dealers. But there is still much to be done.
A car guy, too
Press must also develop a product plan to bring customers back to the showrooms. Dealers think Press is capable of handling everything mentioned above.
Although he is not an engineer, he is known for his deep knowledge of the technical details of vehicles. He is able to hold detailed conversations with product planners, engineers and designers.
Press was named COO of Toyota Motor - USA last year and the first American appointed to the board of Toyota Motor Corp. But in his new position in New York, Press was dealing with Wall Street bureaucrats. For an executive so energetic and famous for very long working days, Press may have felt underused, Toyota insiders say.
"He may have seen the end of the line in his career at Toyota, and Jim is not the kind of person who is going to retire and spend his time on his boat," said one insider.
After graduating from Pittsburg State (Kansas), Press worked for two years at Ford Motor Co., mostly in Portland, Oregon. Press spent most of his career in Los Angeles, but he is no stranger to Detroit either. He is a board member of the College for Creative Studies and of the Boy Scouts of America council in Detroit. He is also a member of the Detroit Athletic Club.
Culture change
Chrysler's dealership culture is undergoing major changes, says Earl Hesterberg, chairman of Group 1 Automotive Inc., the country's fourth-largest dealer group.
"I still haven't met with Tom LaSorda," says Hesterberg, "but I guarantee that by the end of the day tomorrow I will have heard from Jim Press."
Hesterberg suggests that Press might start by scaling back volume bonuses, an incentive that rewards some dealers for reaching targets set by the company. Dealers complain that the incentives reward some and penalize others; in effect, it is a two-tier pricing system.
"This is the most dealer-hostile, most controversial and corrosive approach that any of the manufacturers have today," said Hesterberg. "There are a variety of things that have created a lot of distrust.
Dealers complain that the regional sales offices have been hit by high staff turnover and a lack of experience. All of that could change with Press, says Hesterberg: "He can have an impact on morale in the dealer network almost immediately.
Matching Toyota's success will not be easy. Ed Parker, owner of Champion Chrysler-Jeep in Independence, Mo., said: "For Press, it is one thing to sell the more desirable Toyota and Lexus vehicles, and another to switch to Chryslers, Dodges and Jeeps, which require large incentives.
But industry watchers say that if anyone can do it, that someone is Press.
"I have always been surprised that the domestic manufacturers never recruit from Toyota, Nissan or Honda," says Yale Gusze, who was Press's predecessor as executive vice president of Toyota Motor Sales USA Inc. "This shows that Chrysler is committed to making changes."
Mike Jackson, chairman of Auto Nation Inc., the country's largest dealer group and one of the most vocal critics of Chrysler's business practices, called Press "a transformational executive."
"The biggest challenge for Chrysler is to reinvent its business, moving from factory "push" to market "pull"," said Jackson. "This requires a complete reinvention of its business model, and no one understands this better than Press."
*Based on "Chrysler's plan: Press for success". Automotive News, September 10, 2007
