Chrysler president to quit straight away

Chrysler president and vice chairman, Tom LaSorda, is leaving the carmaker immediately, it has been announced.

Mr LaSorda said when Chrysler filed for Chapter 11 bankruptcy protection that he planned to retire, but a date was not set. Chrysler announced late last night that the 54-year-old’s retirement will be immediate.

The company did not name a successor.

Mr LaSorda joined Chrysler in 2000 and was the company’s top manufacturing executive. Before starting at Chrysler, he worked at General Motors in several roles, including heading its European unit, Opel.

Chrysler CEO Robert Nardelli has said he will step down when Chrysler’s bankruptcy is complete. The company plans to emerge from court protection in 30 to 60 days.

Meanwhile, a parts shortage resulting from Chrysler’s restructuring under US bankruptcy protection has forced the company’s Canadian branch to halt its assembly operations indefinitely, a spokeswoman said last night.

Mary Gauthier said a number of suppliers have stopped shipment of parts to its Canadian manufacturing facilities after its parent company Chrysler LLC said on Thursday that it will shut down its US plants for 30 to 60 days while it completes a technology-sharing alliance with Fiat.

Chrysler Canada is not involved in the bankruptcy filing, but the parts shortage forced the closure of its plants as well.

Ms Gauthier said Chrysler’s two southern Ontario plants ceased production yesterday and would remain closed “until further notice,” putting about 8,700 people out of work indefinitely.

The news came as documents in Chrysler LLC’s bankruptcy case revealed the carmaker has plans to close five more of its US plants permanently by the end of next year.

Chrysler Financial said it is temporarily suspending financing for Chrysler dealers, effective immediately.

The financial arm of Chrysler LLC said last night that the move is a result of the carmaker’s filing for bankruptcy reorganisation protection.

In its court filings, Chrysler said that GMAC Financial Services, the financing arm of General Motors, will become the preferred lender for Chrysler’s customers and dealers.

As part of the deal, GMAC will be able to exclusively offer Chrysler customers certain discount financing offers.

In January, Chrysler Financial received a federal loan designed to help it weather the economic downturn and tight credit markets.