Tom LaSorda Speaks Out

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Tom LaSorda, president and CEO of the Chrysler Group, has a strong background in manufacturing, having spent years of his career involved in labor relations, lean manufacturing, and powertrain manufacturing. He joined General Motors in 1977, serving as president of Opel Eisenbach GmbH in Germany and ultimately as GM's vice president of quality and lean manufacturing. LaSorda moved from the GM camp to competitor DaimlerChrysler in 2000. He was named to DaimlerChrysler's Board of Management and rose to the position of chief operating officer of Chrysler Group, then to the company's top position in mid-2005. LaSorda is responsible for the worldwide operations of Chrysler, Dodge, and Jeep

GREEN CAR JOURNAL: There's growing concern these days about rising fuel prices and our substantial dependence on imported oil. How do you view the role of the auto industry in addressing these challenges, and the role of the federal government?

TOM LASORDA: "Our role in the automotive industry is to keep improving today's technology while also developing new solutions to achieve energy security and reduce the environmental impact of the automobile. Clearly, the federal government and the auto industry both have a leading role to play in achieving our energy and environmental goals. We stand our best chance of success when we work hand-in-hand to reduce our dependence on oil.

"Take the example of fuel cell technology. On the strength of government and industry partnerships, we've made good progress in advancing the technology. This kind of partnership will be absolutely vital to jumpstarting the investment necessary to develop both the technology and the infrastructure."

GCJ: What about the oil industry?

LASORDA: "Oil companies can re-invent themselves much as the automotive industry is doing. Investing in the growing biodiesel and flex-fuel infrastructure would be a smart move for oil companies - both for their own growth, and for our country's energy security."

GCJ: It's well-known that DaimlerChrysler's future focus is hydrogen. What are your thoughts on this?

LASORDA: "Hydrogen fuel cell technology is key to our vision of zero-emission mobility, and we're making progress on this front. As part of our testing and development, DaimlerChrysler already has put more than 100 fuel cell vehicles on the road around the world - more than any other automaker. Altogether, we have the largest and most varied fuel cell fleet in daily use which has logged more than two million miles with zero emissions."

GCJ: How do you envision hydrogen transportation unfolding?

LASORDA: "The transition to fuel cells depends not only on vehicle technology but also on the creation of an infrastructure for the fuel. Over the next several years, fuel cell vehicles will only be suitable for niche applications. Larger-scale introduction onto the market will be within the next 10 years, but it will likely be much longer before fuel cell vehicles become commonplace. By then, we should see necessary improvements to the technology and cost, and a well-developed supply infrastructure."

GCJ: What about alternative fuels for the near term?

LASORDA: "Biofuels like ethanol and biodiesel can be an important part of the near-term solution for achieving our energy and environmental goals, while also boosting our agricultural economy. Since 1998, the Chrysler Group has produced nearly 1.5 million vehicles that can run on E85, a mix of 85 percent ethanol and 15 percent gasoline. We plan to sell more than 250,000 flex-fuel vehicles in 2007 and nearly a half-million in 2008.

"We are also a strong supporter of biodiesel as part of our focus on modern clean diesel technology, which by itself offers improved fuel economy as well as reduced CO2 emissions. One of the advantages of biodiesel is that it can be blended with petroleum diesel for use in today's diesels without modifying the vehicles."

GCJ: How is your collaboration on hybrid development with GM and BMW working out?

LASORDA: "This partnership is working extremely well, and you'll see the result when the Chrysler Group introduces a hybrid version of the Dodge Durango in 2008. This new two-mode hybrid system leapfrogs traditional hybrid design by improving fuel economy not only in city drive cycles but highway speeds as well. The two-mode full hybrid represents a major milestone not only in technology but the cooperative efforts of three fierce competitors to build the world's best hybrid. The result is a fully integrated combination of electric motors with fixed-gear ratios that correct the inefficiencies of hybrids currently on the market."

GCJ: How important will hybrid technology be to the Chrysler Group lineup here in the U.S.?

LASORDA: "Very important, but keep in mind that there is no single powertrain answer. Hybrid technology will be an integral part of our advanced powertrain strategy along with alternative fuels, diesel, and eventually hydrogen. These choices will be to the benefit of both our customers and the environment."

GCJ: Can hybrids be manufactured affordably enough to make them mainstream?

LASORDA: "The two-mode system would be very expensive for any single company to produce on its own. By combining efforts with GM and BMW we can reduce costs in development and core components. These savings can be passed onto our customers. The new two-mode hybrid system will not only be environmentally friendly, it will also offer added value that will help justify any additional cost."

GCJ: How big a role will diesel play in the U.S. in coming years, and how does the Chrysler Group plan to respond to this?

LASORDA: "Diesel is an important part of our multi-technology powertrain strategy. Last year, the Chrysler Group became the first North American-based manufacturer to offer a modern clean-running diesel engine in a midsize SUV in the U.S. market, the Jeep Liberty. We initially expected to sell about 5,000 Liberty diesels, but have sold more than triple that number, showing that there is a growing receptiveness to diesels.

"The 2007 Jeep Grand Cherokee CRD will be the first diesel-powered full-size SUV in the U.S. market and it will offer up to 30 percent improvement in fuel economy. Its engine is based on technology developed by Mercedes-Benz, and the Chrysler Group will continue to leverage Mercedes' expertise in diesels in future years. This fall DaimlerChrysler will bring to the U.S. market BLUETEC, the cleanest diesel technology in the world, in the six-cylinder Mercedes-Benz E320.

"Keep in mind that in Europe, where fuel costs are substantially higher, consumers are familiar with the advantages of diesel, including better fuel economy and reduced greenhouse emissions. The regulatory environment - including vehicle emissions standards and requirements for cleaner fuel - also helps diesel achieve more than half of the European new car market, and about 60 percent of Chrysler Group sales in Europe are diesels. In the U.S., the requirement for ultra-low sulfur diesel that went into effect this fall will provide an important foundation for expanding the market for today's sophisticated, fuel-efficient diesel vehicles."

GCJ: Are we talking 45 state cars here, or do you expect your diesel products to be available in all markets in the United States?

LASORDA: "The 2007 Jeep Grand Cherokee CRD will be available in 45 states. But BLUETEC gives us the potential to meet 50-state emissions in the near future."

GCJ: With competition heating up and so many fuels and technologies at play, how do you see the auto market evolving over the next 10 to 20 years?

LASORDA: "The automotive market will continue to become even more competitive, with more global players offering more choices for consumers. The companies that thrive will be those that best anticipate and meet the demands of customers. At DaimlerChrysler, our vision for lessening the impact on the environment as well as our dependence on oil - while meeting the needs of our customers - includes a wide array of options, as I've discussed. Our customers will be the ones who ultimately decide the technologies they want and need to power their vehicles, now and in the future."