UNIVERSITY DAILY KANSAN
Tuesday. January 11. 1994
9
CHRYSLER: Eaton builds on his current success with a vision for the future
Continued from Page 1.
and as social director of Kappa Sigma fraternity.
In the early 1960s, Eaton used his leadership qualities to persuade about 25 fraternity brothers and other KU students to work at a pea cannery in Athena, Ore. Eaton served as night manager at the cannery for several summers.
Larry Forman, Forman's son and a biology professor at Rockford College in Rockford, Ill., was one of the students who accompanied Eaton in the summers of '61 and '62 to Oregon.
Eaton was easygoing, Larry Forman said, but he knew how to get the most out of his workers.
"I think I was impressed because even as a college student, this guy knew how to get the job done right," Forman said.
Eaton said the experience had helped him grow up and grow out of a small-town environment and philosophy.
One goal. one interview
"So for someone from a small town, I guess I had a broader view of the world than most people might have had."
"I came from a very narrow background," he said. "But on the other hand, by the time I got out of college, I had worked in Oregon, Washington and California.
Throughout college, Eaton said, he was sure that he would go into the automotive business. So sure, in fact, that he didn't bother searching for jobs in other fields.
"At that point in time, many companies came to KU and interviewed," he said. "Well, you know how a typical senior applies with a lot of companies and has a lot of interviews? I had only one. And that was with General Motors."
Eaton signed with General Motors Corp. in 1963 as a college graduate-in-training with Chevrolet's engineering center in Warren, Mich. Eaton said he appreciated the willingness of the company to expand his role.
"I suspect it is reasonable to say I demonstrated leadership capabilities fairly young," he said. "Within the first two years I was at GM, I was on design teams. I was in a laboratory — a proving ground of sorts — three manufacturing plants and an engineer's office. So very quickly I got a broad view and a fairly good understanding of the automotive business."
The division managers at GM gave him increasing responsibilities early in his career. They trusted him.
While he was a senior research engineer at Chevrolet not exactly a management position—he was in charge of a group of 15 people.
"I had a lower title than they did, and I made a hell of a lot less than they did," Eaton said. "But there wasn't any question among any of the 15 who was running the show."
When he began his career, Eaton said, he never imagined that he eventually would shift from engineering and designing to managing teams and entire divisions.
"There was never a specific decision point — I'd say the shift was a natural progression," he said. "It was never a conscious thing. I don't believe."
Eaton advanced quickly with GM. In 1982, for example, he was appointed vice president of GM's advanced engineering staff, not even a full year after being named Oldsmobile's director of quality and reliability.
Six years later, Eaton became president of GM Europe, which is based in Zurich, Switzerland. There, Eaton would attract Chrysler's attention by turning record profits and revitalizing the European sale of cars produced by American companies.
There are many similarities between today's Chrysler and the GM Europe that Eaton took over in June 1988. That division had fallen on hard times in the late '70s. Things were so bad that German schoolchildren derided its German-made Opel car, chanting a rhyme that went in part: "Every yoke driver an Opel."
But when Eaton arrived, GM Europe was already on the mend — as some analysis thought about Chrysler when Eaton became CEO. Cars began to show profits, even the belittled Opel. During Eaton's tenure, GM Europe's market share grew to 11.7 percent in 1991, up 1.3 percent from 1988. And although GM's total losses in 1991 were about $4.5 billion, Eaton's GM Europe division racked up its fifth straight year of profits — netting $1.89 billion, a margin of 7 percent on sales of $25.4 billion.
Iacocca, who led the effort to get Eaton out of Europe and to Chrysler's executive round table in Highland Park, Mich., credited Eaton with boosting GM Europe's auto
Trimming expenses and developing cost-efficient lines of cars were crucial elements in Chrysler's decision to hire Eaton.
"He fits in with the management and team philosophy that we've built here at Chrysler," Iacocca said at the press conference announcing Eaton's appointment.
quality by 50 percent and making it Europe's lowest-cost producer.
"I would always take all of the responsibility that anyone would give me," he said.
Eaton, in looking back on his career, said that he had set and followed his own rules.
"On the other hand, if you're focused on money and positions, you've not focused on anything that is of value to the company, and you probably won't progress."
A life of intensity
Eaton, like any CEO of a multinational corporation, is a busy man.
A large amount of his time is spent traveling to receptions and auto shows or giving speeches.
On days that he is in the office, "he's in at 7:30 and doesn't leave until 6:30 at night," said a Chrysler representative who arranges Eaton's interviews.
"I travel way too much," Eaton said. "I would suggest — it's less than when I was in Europe — I'm averaging four to five flights a week."
When asked if his travel took away from the time he spent at home in Bloomfield Hills, a Detroit suburb, with his wife, Connie, Eaton paused.
"Yes and no. Some of that travel is out and back the same day, therefore I'm home in the evenings. On the other hand, I'm gone a few days per week." he said.
But not all of that travel time is spent on business.
Eaton, who admits having "more hobbies than time," is an outdoor enthusiast.
He said he had three rules regarding the outdoors that he followed every year. "I try to ski one week, scuba dive one week and hunt for at least one week.
"I've got far, far far too many hobbies. And I'm not terribly proficient at any of them."
The impression Eaton gives, though, is that he plays as hard as he works.
In mid-November, he spent a week deer hunting in northern Michigan and spent the next duck hunting in Canada.
To Eaton, time out of the office is precious — so precious, in fact, that it doesn't matter what the destination, just so long as it's outdoors.
Chrysler's decision to look outside the corporation for a new chairman was met with mixed reactions in the automotive industry, not to mention inside Chrysler.
"I've made it a point not to cut back on any of my hobbies since I've been here," he said.
Bittersweet success
In recruiting Eaton, Chrysler board members skipped
Brad Stertz, automotive editor of The Detroit News and a former reporter for The Wall Street Journal, said that Eaton's appointment might have bruised Lutz's ego for a short time.
"I think it's safe to say Lutz was a little jealous," Stertz said. "But he probably thought it would have been pointless to fight it or leave.
over President Robert Lutz, 61, considered the favorite to succeed Iacocca.
"He only has three or four years to go until retirement anyway. He figured, 'What's the point?'
Stertz said that Eaton had smoothed the transition by letting Lutz handle marketing projects, like the hot-selling "LH" sedan line, which includes the Chrysler Concorde, Dodge Intrepid and Eagle Vision. Chrysler sold 138,723 "LH" units in the first model year.
Eaton, on the other hand, is more interested in manufacturing and production at Chrysler, Stertz said.
"It's just like Eaton that, whenever he has questions or wants input on engine testing, for example, he'll roll up his shirt sleeves and go and check it out with the engineers," he said.
Although recovery already was under way at Chrysler before Eaton arrived, thanks to several new lines of cars and cost-cutting measures that were in place, Chrysler still has a way to go. Stertz said.
"Chrysler's problems, though, are suited to Eaton's talents: keep studying a system and learn how to do things efficiently while demanding quality." Stertz said.
And Chrysler numbers have improved every quarter since Eaton took over.
Chrysler earned about $1.8 billion last year and expects a $2.1 billion profit this year. Just two years ago, Chrysler reported a net loss of more than $665 million.
Ford Motor Co. and GM also have reported rising sales, a stark contrast to even a year ago.
Eaton, along with Ford's Alex Trotman and GM's Jack Smith, have brought a new ideology and a renewed vigor to Detroit.
The December issue of Time magazine credited the CEOs with building a "different Detroit...
"Modesty, humor (especially of the self-defating variety), open discussion, candor and team play are all in. Pomp, protocol, pretension, and paperwork are distinctly out."
For too long, Eaton admits, American automakers have taken it on the chin from critics, consumers and a multitude of foreign competitors.
That, Eaton said, is changing.
"A nice fella" holds his ground
In September, Eaton appeared on NBC's "Today" show and talked with host Bryant Gumbel about the Neon, Chrysler's new four-cylinder compact car that was on display in Germany at the Frankfurt Auto Show.
Gumbel pressed Eaton three or four times for details about the vehicle price, which had not been released. Eaton wouldn't budge.
Eaton's composure and resolve impressed Larry Forman.
"You could see Bob getting a little defensive—not trying to be difficult—but rather, holding his ground, not letting anybody get the better of him," he said. "Bob is tough."
But refusing to talk about issues in Detroit has seldom been the case, especially at Chrysler.
Eaton, like lacocca, is vocal about issues that affect any Big Three automaker. Trade is a particularly significant issue to Eaton.
Eaton considered the North American Free Trade Agreement a "watershed" and "a giant step in the right direction for America.
"Chrysler will be adding jobs because of NAFTA. We will be exporting 12 to 15 times more vehicles next year, compared with 1993."
He said that if a trade agreement could not be reached soon with Japan, the United States would have to impose unilateral sanctions to reduce the trade gap.
"Sometimes you need to set those rules yourself," he said.
Eaton gave the remarks during a speech to the International Relations Council in early December at a downtown Kansas City, Mo. hotel.
Earlier in the evening he had attended a KU Engineering Society reception at a downtown club.
Holly McQueen / KANSAN
KU graduate Robert Eaton, chief executive officer or Chrysler, speaks to the Kappa Sigma fraternity. Eaton is a member of the fraternity.
Carl Locke, dean of the School of Engineering, said Eaton had kept in touch with the school, at one time serving on the school's advisory board.
He said Eton was responsible for GM's five-year,
$200 000 grant to the school to create these computer labs.
Locke said Eaton remained sincere and dedicated to keeping his ties with the school open.
"He is just a high quality individual," Locke said. "You always like to see people following through with their talents, and to have the CEO of Chrysler be a graduate of KU is something special."
Those close to Eaton were not surprised by his appointment as CEO of Chrysler nearly two years ago. Nor have they been surrised by the results.
Steve Ross, a longtime friend and one of Eaton's fraternity brothers at the University, is one of those people.
The time spent with Eaton in college was valuable, Ross said.
"Bob always liked a challenge," said Ross, who lives in Arkansas City.
His college buddy went "out of his way," Ross said, to make him feel special.
"He would offer to double date with me since I didn't have a car," he said. "Other times he helped me with other stuff I might have been having trouble with.
"Bob's just a nice fella."
Ross also was one of the fraternity brothers who went with Eaton to work at the Oregon cannery.
"To tell you the truth, I never expected a friend of mine who worked with me at a pea cannery would end up leading Chrysler," Ross said. "But then again, it doesn't surprise me.
"Bob has been an influence on me because of who he is personally. And I'm sure that's the case with others around him.
"The guy has such a great enthusiasm for life."
Eaton, during his address in May at Arkansas City High, offered advice to the graduates who grew up in his home town. The words pride and responsibility were mentioned more than a dozen times in the speech.
"Some people go through life ducking responsibilities," he said. "They think of them as burdens they want to avoid."
"Others spend their lives actively seeking them. They can never get enough. They see each responsibility as a new opportunity. They want responsibility and accountability because they want the rewards that come with it.
"They are usually called winners."
---
Lawrence's Newest
COLLECTIBLE
USED BOOK STORE
8500 Old Books
VAGABOND BOOKMAN
1113 Mass
842-BOOK
Hours : Mon-Sat 10-6
We buy and sell old hardback books
WE'VE GOT IT ALL!
We've Got R All At One Location
- UPS Authorized
- PYRUS Distribution
- Priority Mail Collection
- Personal & Business Packaging Supplies
2540 Iowa St., Suite J
NE 141814
Fax Services
(Sand) Receive 30hrs
Notary Service
Panoport Photos
& Applications
Pharmac (913) 865-3636
Fax: (913) 843-9905
- Next to Applebee's -