DETROIT -- Mike Donoughe, a top engineer at Chrysler LLC who was leading a key development team, has left the company unexpectedly, a company spokesman confirmed.
Mr. Donoughe was heading "Project D," a crash effort to develop a new generation of midsize cars that can compete with the segment leaders, the Toyota Camry and Honda Accord, but clashed with senior management, people familiar with the matter said.
The Project D team will be taken over by Mark M. Chernoby, who had been head of vice president of core components, processes and international engineering, Chrysler spokesman David Barnas said in a statement.
Mr. Barnas declined to discuss why Mr. Donoughe left, but said there was no clash with management. People familiar with the matter said Mr. Donoughe's departure was prompted by disagreements over the direction and pace of the project.
James Issner, who had been heading advanced vehicle engineering, will take over responsibility for core components, processes and international engineering, Mr. Barnas said. Chrysler's advanced engineering will now be run by Lou Rhodes, who is also in charge of ENVI, a group developing hybrids and electric vehicles, Mr. Barnas said.
Mr. Donoughe was seen as one of Chrysler's best engineers. He had previously been in charge of the company's "body-on-frame" trucks, such as the Dodge Ram, Jeep Wrangler and Dodge Durango-some of its highest selling and most profitable models.
After Chrysler was acquired last summer by private-equity group Cerberus Capital Management LP, the new management team under Chief Executive Robert Nardelli and Vice Chairman Jim Press concluded Chrysler needs to be much more competitive in midsize cars, known in the auto industry as the "D" segment.
The company's current midsize sedans, the Chrysler Sebring and Dodge Avenger, have sold poorly and are often sold now to rental car companies. Both Mr. Nardelli and Mr. Press have publicly criticized the interiors of the vehicles.
Last fall they named Mr. Donoughe to head a new effort to find a way to make Chrysler more competitive. The Project D initiative had been examining how Chrysler went wrong with the Sebring and Avenger and what the company could do to become more competitive. The ideas under consideration include partnering with other auto makers and developing rear-wheel drive models.
New versions of the Sebring and Avenger aren't expected to come to market well until 2010 or 2011.
Mr. Donoughe's departure comes at a time when Chrysler is making moves to boost its product lineup, particularly models slated to hit showrooms in the next upcoming years. Mr. Donoughe spent more than 24 years with the auto maker.
http://online.wsj.com/article/SB120647538463363161.html?mod=googlenews_wsj
Mr. Donoughe was heading "Project D," a crash effort to develop a new generation of midsize cars that can compete with the segment leaders, the Toyota Camry and Honda Accord, but clashed with senior management, people familiar with the matter said.
The Project D team will be taken over by Mark M. Chernoby, who had been head of vice president of core components, processes and international engineering, Chrysler spokesman David Barnas said in a statement.
Mr. Barnas declined to discuss why Mr. Donoughe left, but said there was no clash with management. People familiar with the matter said Mr. Donoughe's departure was prompted by disagreements over the direction and pace of the project.
James Issner, who had been heading advanced vehicle engineering, will take over responsibility for core components, processes and international engineering, Mr. Barnas said. Chrysler's advanced engineering will now be run by Lou Rhodes, who is also in charge of ENVI, a group developing hybrids and electric vehicles, Mr. Barnas said.
Mr. Donoughe was seen as one of Chrysler's best engineers. He had previously been in charge of the company's "body-on-frame" trucks, such as the Dodge Ram, Jeep Wrangler and Dodge Durango-some of its highest selling and most profitable models.
After Chrysler was acquired last summer by private-equity group Cerberus Capital Management LP, the new management team under Chief Executive Robert Nardelli and Vice Chairman Jim Press concluded Chrysler needs to be much more competitive in midsize cars, known in the auto industry as the "D" segment.
The company's current midsize sedans, the Chrysler Sebring and Dodge Avenger, have sold poorly and are often sold now to rental car companies. Both Mr. Nardelli and Mr. Press have publicly criticized the interiors of the vehicles.
Last fall they named Mr. Donoughe to head a new effort to find a way to make Chrysler more competitive. The Project D initiative had been examining how Chrysler went wrong with the Sebring and Avenger and what the company could do to become more competitive. The ideas under consideration include partnering with other auto makers and developing rear-wheel drive models.
New versions of the Sebring and Avenger aren't expected to come to market well until 2010 or 2011.
Mr. Donoughe's departure comes at a time when Chrysler is making moves to boost its product lineup, particularly models slated to hit showrooms in the next upcoming years. Mr. Donoughe spent more than 24 years with the auto maker.
http://online.wsj.com/article/SB120647538463363161.html?mod=googlenews_wsj
