• by Karl Greenberg , August 15, 2008

The mood might not have been bonny among automakers and industry observers, but Tom LaSorda, Chrysler LLC's Vice Chairman and President, was optimistic about the company's future in a speech this week at the Center for Auto Research's Management Briefing Seminars in Traverse City, Mich.

Why? Because of Brazil, Russia, India and China--the four countries that, per LaSorda, will drive global automotive sales in coming years.

Those countries, he said, would be the source of 80% of new auto sales over the next 10 years. He said the countries are forecast to account for the sale of 15.4 million additional vehicles in 2018 compared to 2006, "far outstripping the 2.1-million unit growth in NAFTA over the same 12-year period," he said. By 2018, LaSorda said, sales in the four countries will reach a combined 27 million units per year. "That's almost double what we'll do in the U.S. this year," he said.

The key, said LaSorda, will be global partnerships with suppliers and other automakers. "You are probably familiar with our partnerships with Nissan, under which we will get a version of the ... [Nissan] Versa for South American markets beginning in 2009." He said the deal will give Chrysler a small car for North America, Europe and other markets in 2010, while Chrysler will manufacture a full-size pickup for Nissan starting in 2011. "Over in Windsor [Ontario], we build the minivan that Volkswagen will market as the 2009 VW Routan."

Other predictions LaSorda made: more industry consolidation, especially among suppliers; Chinese automakers exporting vehicles to North America, and European manufacturers bringing their small cars here to manufacture and sell here as well as to export back home to take advantage of the weak dollar.

And his warning: strong brands will survive. "The bottom line is that anyone making a raw commodity is vulnerable. You're no different than a generic car that has no brand loyalty. The companies that will survive are those who make products that help create a distinct brand image for the vehicle."