Chrysler May Want Iacocca in Its Future

Chrysler Corp.’s directors, rocked by a series of high-level resignations, are poised to discuss this week a contract extension for the auto maker’s charismatic chairman, Lee A. Iacocca, reports today said.

“I’m sure that will be discussed” at Thursday’s board meeting in New York, an unnamed Chrysler executive told the Detroit News.

The Detroit Free Press quoted “industry insiders” as saying the 64-year-old Iacocca may not retire when his contract expires in December, 1991, but plans to keep working until at least 1994.

Chrysler spokesman Steve Harris could not be reached for comment today but was quoted in the Detroit News as saying he knew of no change in Iacocca’s plan to decide on his future at the end of next year.

In the last month, Chrysler has lost three key figures--Vice Chairman Gerald Greenwald, Treasurer Frederick Zuckerman and Vice President Michael Hammes. In addition, the firm saw its earnings slip nearly 80% in the first quarter of this year.

“Right now, there are important constituencies within Chrysler’s dealers, employees, the financial community and shareholders that would like to see Iacocca stay on,” said Jack Kirnan, an auto industry analyst with Kidder Peabody & Co. in New York.

“I think it’s going to happen. I think it’s very critical to Chrysler’s future.”

Contributing to the pressure on Iacocca to remain at the helm is his popularity as Chrysler’s leading advertising spokesman.

The News quoted “sources familiar with Chrysler’s marketing plans” as saying the firm is having difficulty devising an advertising plan that does not include Iacocca.

The News also quoted sources as saying Greenwald’s departure has cast doubt on the retirement plans of Bennett Bidwell, the 63-year-old chairman of Chrysler Motors.