Chrysler has been through more changes in the past six months than any automaker in recent memory, and the announcement of former Home Depot CEO Bob Nardelli as Chrysler's head honcho is just another sign that the auto business in Detroit is rapidly changing. Nardelli was booted unceremoniously at America's home improvement store due to poor stock performance and an outlandish executive salary. He has no automotive experience, but he's the guy Cerberus wanted to lead Chrysler now and in the future. Former CEO Tom LaSorda is staying onboard the Pentastar as vice-chairman and President, and he'll continue to lead the crucial UAW contract talks.
Follow the jump for more analysis and video of Nardelli's press conference.
Based on the pessimistic (more so than usual) questioning from the press corps, the media is probably thinking this new one-two punch of LaSorda and Nardelli will be a short-term one. Judging from your comments here, you agree, too. On three different occasions, the press hammered at Nardelli about his pay, and each time the question was averted. One reporter asked if UAW President Ron Gettlefinger brought up the new boss' compensation and Nardelli tried to duck the question by stating that Gettlefinger said he didn't care about refrigerators, he cares about cars (we're with you on that one, Ron). When the reporter redirected by stating that Mr. Gettlefinger didn't discuss pay, Nardelli said "now I didn't say that."
Executive pay has been a huge thorn in the side of the rank and file for some time now, and adding the highly-paid ex-retail czar into Chrysler in the middle of contract talks was more than bad timing. That's where keeping LaSorda in the fold makes sense for Cerberus. He has the respect of Union officials, and the manufacturing knowledge to hold his own with just about anyone. After the UAW and Cerberus settle on the deal, however, there may be little need to keep LaSorda around. The last thing Chrysler needs right now is a split leadership team, and one chef will need to leave the kitchen.
We had video rolling during the Nardelli press conference. Try not to vomit in your mouth when Nardelli calls Lasorda "Tommy" like he's his kid brother or something.
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Reader Comments (Page 1 of 2)
ryan @ Aug 7th 2007 11:50AM
this really shouldn't come as much surprise to cerberus, chrysler, or the UAW. why WOULDN'T the press question the man who was involved in such a large comp package with Home Depot and assume that he's getting his share from chrysler now?
were they thinking that it wouldn't be questioned or brought up?
F451 @ Aug 7th 2007 11:55AM
What a difference this little press interview would have been had Home Depot personnel been there to ask questions, but more so to give answers. Nardelli is sooooooo wrong for this position.
Tool @ Aug 7th 2007 11:56AM
Here's what I am wondering:
What REALLY happened that Wolfgang Bernhard did not become Chairman? Who really believes that his family did not want to move to Detroit (which is the reason the WSJ cited). I mean Detroit is a shithole, but what Type-A CEO would use that as an excuse?
Made In Detroit @ Aug 8th 2007 12:05AM
Oakland County is the 6th wealthiest county in the nation. Shithole? I'm sure the cheapest house in Southfield, MI is nicer than the port-a-potty you call a home dicklips. ;)
Mike G @ Aug 7th 2007 12:02PM
I don't get all the adoration for Bernhard that I see on these posts. Wasn't he a part of Chrysler over the last few years - apparently his presence did not help much.
Sure he has great hair and looks fancy, but he did not perform when he had the chance. Now the new owners are giving a new manager the chance. Guten tag, Herr Wolfgang!
JC3 @ Aug 7th 2007 12:08PM
Nardelli's a symbol of lackey corporate culture.He's the CEO of the lackeys.he's just there to bleed every cent from Chrysler as it is slowly, methodically deconstructed and sold off.
Don @ Aug 7th 2007 1:21PM
He's there to return a profit to Cerberus...nothing more. This isn't a car guy.
JC3 @ Aug 7th 2007 5:30PM
I believe He'll return a short term profit for Cerberus but ultimately He will eviscerate the company's talent pool with job cuts, layoffs etc. which is nothing to celebrate.Long term forcast for a heathly stand alone Chrysler is not good.
geo.stewart @ Aug 7th 2007 12:21PM
LaSorda will be kept until the union contracts are done and then he will be gone, and the whipping boy for all the problems for the next two years.
always happens this way
Artie43 @ Aug 7th 2007 12:49PM
Sounds like Nardelli is being hired to 'clean house' so to speak. Chrysler is in serious trouble and needs complete new management if they want to save the company. It is obvious that the old management was 'corrupted' by all of the years of bad management. Let's hope he can clean quickly.
Don @ Aug 7th 2007 1:20PM
"It is obvious that the old management was 'corrupted' by all of the years of bad management."
Wow. That's insightful.
JohnAngelo @ Aug 7th 2007 1:44PM
Chrysler is not known for innovation; Mulally has been able to effect significant change at Ford.
He had no auto experience.
Nardelli could be a good choice, except for the aroma surrounding his HD departure.
And if it comes out that his compensation is regal, Cerberus is a private company and it's their money...
Jruhi4 @ Aug 7th 2007 1:54PM
The Car Connection website today commented that it may have been issues with his recent Volkswagen contract and not the admittedly lame "family issues" excuse that kept Wolfgang Bernhard from the Chrysler chairmanship.
iQuack @ Aug 7th 2007 2:19PM
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.
Whatsinaname @ Aug 7th 2007 5:45PM
This is just the first step in getting rid of LaSorda and Cerberus having its own people in the top management ranks at Chrysler. There's already meetings going on internally at Chrysler with some people, the 8:00-5:00 engineers, who are worried that Cerberus is going come through the aisles with a broom... and trust me, they NEED to do that. There is so much dead weight in the engineering rank and file and Chrysler that its disgusting to some us.
The new Dodge Carvan is in some serious trouble too and it hasn't even hit the dealer lots. There are a lot of technical issues with those cars (or RT's as they are known within Chrysler). Chrysler is doing a lot of reworking cars at the Windsor and St Louis plants...
Why are there so many issues? Becuase of all the dead weight in their engineering staff who do nothing but oppose productivity day after day, after day.
Takaboy @ Aug 7th 2007 6:52PM
Nardelli looks a bit like Jack Benny in that pose. "I'm thinking, I'm thinking." Perhaps hehopes for another $210 million golden parachute after a couple of years.
DJ @ Aug 7th 2007 7:39PM
I have liitle doubt that Nardelli was brought in to slash costs and prep Chrysler for sale to one of the Chinese concerns. He did absolutely nothing worth a shit at Homely Depot, other than pay himself a boatload of cash, overpay for aquisitions, and allow the stores to become the dumps they are today. Worst of all, he provided NO, ZERO, NADA stockholder value during his tenure. As a matter of fact, the stock was worth LESS when he left than it was when he started. And as for his "stellar" career at GE, he was nothing more than Welch's lap dog.
A week ago, I thought Chrysler might have a chance at a future. Today, it's all over!
whofan @ Aug 7th 2007 8:15PM
When Chrysler dies a part of the USA will die with it. I think ( spelling) Urigen Schremp? let Chrysler down easy. He Knew how great Chrysler is and did the best he could to divorce Chrysler from Diamler. I would like to thank him for doing the right thing. I hope Cerberus is a better parent than Diamler.
IQuack, I hope your Toyota takes a big sludged up shit on you.
whofan @ Aug 7th 2007 8:22PM
I ment Dieter
iQuack @ Aug 8th 2007 2:20AM
From the brilliant "whofan" comes this:
"IQuack, I hope your Toyota takes a big sludged up shit on you."
Gee, thanks, Dimbulb. Where's my Toyota? I like Toyotas, but do not own one and never have. So, you don't know shit!
I've had several Chrysler cars in the past--probably well before your sorry ass was born, hatched, or arose from the ooze.
My last Chrysler car was a '68 Dodge Charger with a 383 V8, and it was a very good car, but not the best I've owned.
Chrysler cars have ranged from great to wretched but they're currently so undistinguished that most people couldn't give a crap whether Chrysler lives or dies.
Personally, I wish Cerberus well and hope Chrysler becomes a strong company again.