Filed under: Chrysler, LLC., Earnings/Financials
Chrysler could make profit within 3 years, so says Cerberus
Chrysler's new owner, Cerberus Capital Management, expects the carmaker to return to profitability in roughly three year's time. In a recent interview, Cerberus boss John Snow told reporters "I think you'll see that Chrysler will be in much better shape within three years. This is a plan to get it back to profitability." To ensure that it actually happens, former Home Depot Chief Robert Nardelli has been appointed as the automaker's new Chairman and CEO. Though Nardelli made some major blunders at his former place of employment, his time spent at General Electric is the reason why he was picked for the new job.
His strength is his willingness to cut out a company's weak points, whether they are operations or actual staff, and basically give the entire management hierarchy a shake up. Not surprisingly, when he stepped in at Home Depot in late 2000, 24 of the company's 39 senior staffers either quit or got the boot. We suspect the same is going to happen at Chrysler.
[Source: Automotive News, sub. req'd]
Reader Comments (Page 1 of 1)
Tyk 2:35PM (8/07/2007)
The joke is on Cerberus, Chrysler doesnt have 3 years to START making money... esp. not when most of their sr. management are going to jump ship. I doubt Nardelli will even last that long.
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iQuack 2:50PM (8/07/2007)
The only significant losers here are Chrysler employees, most of whom will find replacement jobs after layoffs. Of course, if the company succeeds, it'll be good for the remaining employees.
As a shareholder of Home Depot, I can't say much favorable about Nardelli, but maybe his brand of management is needed at Chrysler now.
But why should any of us care? Because Cerberus is a private company, there aren't any outside shareholders taking any risks at all.
As for car buyers, well, they've been avoiding Chrysler vehicles for years and wouldn't miss the demise of Chrysler from bankruptcy or break-up and sale of its pieces if that's what's in store.
Loyalists can easily find a different brand to love in today's competitive market if the company doesn't produce compelling vehicles. And that's the bottom line here: Make vehicles people want to buy or disappear.
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Todd Hebert 3:01PM (8/07/2007)
http://www.barretire.com Let's see if the economy gets better first..
iQuack 3:05PM (8/07/2007)
Uh, Todd Herbert:
Nice job of injecting your spam website into the blog.
Will be happy never to buy anything from your website:-(.
Jason 3:03PM (8/07/2007)
What I want to know, is when will I be able to get one of those slick 3-headed dog hood ornaments for my 300.
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Mikel 3:55PM (8/07/2007)
Yeah put me down for one as well! We don't need no stinking winged logo... bring on the dogs of hellfire!
JC3 3:23PM (8/07/2007)
Nardelli will get rid of all the talent and hire no-talent part time bozos like he did at Depot.Yes the co. will look profitable in 3 years ON PAPER,but spirituallly it will have been gutted.Nardelli will once again escape will a mighty serverace package like He did at Depot.and Chrysler will be picked up or sold off in pieces.That's Nardelli's style
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jw 5:02PM (8/07/2007)
jc CHRYSLER HAS NO TALENT!!!!BLOW EM ALL OUT AND LETS START OVER!!!!
icu812ru469 3:40PM (8/07/2007)
Profitability after three years? Are they moving all operations to China in one year, then rebading all their vehicles as Lexas or BMUU?
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RDL 12:02AM (8/08/2007)
ROFLMAO!!!
TriShield 3:58PM (8/07/2007)
iQuack, are you claiming people don't love the 300, Charger, Challenger, Viper, HEMI and Jeep? People have been avoiding their products for years? Were they not the hottest American automaker just a few years ago?
For a company so unloved I sure see a number of their current products on the road, not to mention they still sell a substantial amount of vehicles.
Chrysler has a very rich history to draw on and great potential to be successful if it was managed correctly. Is Nardelli the right guy at the right time, or is he a puppet for Wolfgang Bernhard?
I guess we'll see.
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F451 4:02PM (8/07/2007)
Screw Cerberus, screw Nardelli, and pity Chrysler for being bought by dogs.
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Brendan Smith 4:45PM (8/07/2007)
Tell us how you really feel...
whofan 4:12PM (8/07/2007)
I wonder if Cerberus was serious about turning Chrysler around and building cars.
Cerberus might just chop the company up as first feared. They need a fall guy to but the blame on so it looks as if they found one.
God I hope this is not so!
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Tool 5:34PM (8/07/2007)
I'm really surprised at the level of comments here regarding the New Chrysler.
Who honestly believes that Cerberus is going to "chop up" the company into pieces and sell it off? Believe me, the parts aren't worth a whole heck of a lot, considering the state of the domestic auto industry.
I have a hard time believing that Cerberus would put its credibility on the line and kill-off Chrysler, which is an American Icon.
If anything, I think they are taking an EXTREMELY hardline response with the choice of Nardelli as CEO. While I question the wisdom of that, I've got to believe that they will shake things up in a very positive way.
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whofan 6:34PM (8/07/2007)
Tool,
Believe me, I hope your right. Chrysler is a great company with a great product that been lead astray. Chrysler must live. I just don`t think a slashing bean counter is the right leader to run the company and a greedy one at that.
Like I said before I wish Lee Iacocca was 40 years younger and hired by Chrysler. The Grandfather of the Ford Mustang and the man who brought the minivan concept to Ford first before Henry FordII rejected it and fired Iacocca. Lee Iacocca saved both Ford and Chrysler once before.
F451 6:34PM (8/07/2007)
Since Nardelli has proven how grossly ineffective he is with subordinate personnel how is it that Chrysler is making a hardline with him? I guess Chrysler could state, "Hey we hired an idiot as CEO, so don't blame us if he screws-upagain."
.03 5:38PM (8/07/2007)
you people are really something.
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F451 6:30PM (8/07/2007)
Aren't we though...special I'd say ;)
Reality Check 7:51PM (8/07/2007)
FYI, There is a big differance between puttng hammers on shelfs to sell then building a car! Start watching Leno this should be very funny, unless you work for Chrysler....
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