Chrysler Names Lutz President in Reorganization

Chrysler Corp. announced a reorganization that promoted Robert A. Lutz to president, a possible sign that he is in line to succeed Lee A. Iacocca as head of the troubled auto maker.

Lutz is an engineer who has worked for General Motors Corp., Ford Motor Corp. and the German auto maker BMW. He had been president of Chrysler Motors, a remnant of a former car- and truck-making subsidiary at Chrysler.

With the retirement of Bennett Bidwell last month as chairman of Chrysler Motors and Lutz’s new title, the old organization officially ceased to exist.

In its place is a new system of teams responsible for designing, engineering and marketing specific classes of vehicles. Each team reports through a vice president to Lutz.

In addition to responsibility for car and truck development, manufacturing and marketing, Lutz oversees Chrysler’s parts subsidiary, Acustar Inc., and its Mexican operations.

Lutz and Vice Chairman Robert S. Miller are now seen as the most likely successors to Iacocca. Generally, Lutz has product responsibility and Miller oversees Chrysler’s financial operations.

Last June, Iacocca said he would stay on past his planned retirement in December because of the sudden resignation of former Vice Chairman Gerald Greenwald.

Greenwald, Iacocca’s heir-apparent, left the auto maker to lead an unsuccessful bid by United Airlines’ unions to buy the airline.

In July, Iacocca worked out a new employment agreement--without an expiration date--with Chrysler’s board.

Lack of a clear successor to Iacocca, whose name has been synonymous with Chrysler for more than a decade, is seen by some industry analysts as part of a broader problem at the company, considered the weakest of the Big Three.

Chrysler’s sales, especially, have been hurt by a nationwide recession and relentless inroads by foreign competition.