Chrysler exec runs afoul of Uncle Sam, possibly lender

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Jim Press may be a good car salesman, but he’s apparently not much of an accountant.

The deputy chief executive of the automaker Chrysler Group, which recently emerged from bankruptcy, is in financial trouble of his own, according to public filings.

FOR THE RECORD:
An earlier version of this post stated that the Bush administration provided $15 billion in bailout funding to the troubled automaker. Both the Bush and Obama administrations provided financing to Chrysler as it restructured and ultimately filed for bankruptcy protection.

A recently unearthed lawsuit filed this summer alleges that Press owes a Long Beach lender, Western Federal Credit Union, $609,286. The alleged debt stems from an unsecured line of credit Press took out while working for Toyota Motor Corp. in Torrance.

Separately, Press’ six-bedroom home in Birmingham, Mich., has been slapped with a $947,410 federal tax lien because the auto executive failed to pay 2007 income taxes.

First reported by the Detroit Free Press and the Detroit News, the auto chieftain’s’s troubles provide a
rare glimpse of the financial doings of one of the prime players in the industry’s bailout. (The scoop after the jump.)

Late last year, Press appeared before Congress to plead for federal help in bailing out his beleaguered company, and he later played a key role in crafting the auto industry’s federal resuscitation. The Bush and Obama administrations ultimately handed Chrysler $15 billion in taxpayer funds to keep it afloat.

Chrysler ended up in bankruptcy anyway. It took a merger with Italian automaker Fiat to save the company, and the new chief executive, Sergio Marchionne, quickly cleaned out the executive ranks. He kept Press, however, making him his deputy chief executive.

Rumors have surfaced lately that Press, who came to Chrysler from Toyota in late 2007, would be leaving the Auburn Hills, Mich., automaker by year’s end. Press was considered a huge prize for Chrysler at the time of his hiring, and some reports have pegged his compensation at nearly $50 million, although those are unconfirmed.

While at Toyota, Press took out the line of credit, using the Toyota Federal Credit Union. That lender was subsequently acquired by Western Federal, which canceled Press’ credit line and asked for repayment.

According to a letter Press sent on Nov. 11, 2008, Press blamed his inability to pay on the fact that Chrysler had canceled executive bonuses as part of the bailout process, and that he was unable to refinance his home, according to the newspaper reports. According to Press, the matter was ‘just a cash flow issue at this time,’ according to the newspaper articles.

Tons more details, including information on Press’ multiple homes -- in New York, California and Louisiana -- in the Detroit papers, and soon to be papered all over the Internet.

--Ken Bensinger