Autoblog

Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately

Frank Filipponio — Wed, 10 Jun 2009 13:28:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Chrysler, Earnings/Financials, Fiat

Fiat now owns a big chunk of Chrysler. Officially. Soon after the Supreme Court gave it the go-ahead, the sale of Chrysler to Fiat was complete. Altogether, the deal took just 42 days. With a couple of signatures and a wire transfer Wednesday morning, the sale was official. Fiat gets most of Chrysler's assets and $6.6 billion in "exit financing" from the federal government.

This can be seen as a victory of sorts for the Obama Administration, which had hoped to get Chrysler reorganized quickly and efficiently. Supporters say that the new Chrysler Group LLC has a good chance of being more competitive out of the box, having shed much of its legacy labor costs and debt, and Fiat's expertise with small cars shouldn't hurt either.

Official statements by current Chrysler CEO Bob Nardelli and Fiat's Sergio Marchionne are pasted in after the jump. Nardelli congratulates employees on being a part of "a leaner, healthier and more robust company," and says goodbye at the same time. He will return to a position with Cerberus. Marchionne introduces himself as the new CEO, former Toyota exec Jim Press as Deputy CEO, and Robert Kidder as board chairman. He also promises that the world's sixth largest automaker will begin to show signs of improvement immediately.

In related news, the Obama Administration has announced the appointment of a new 'Compensation Czar' to oversee the salaries and benefits packages awarded to 175 major executives at seven of America's biggest companies that receive federal aid. According to the New York Times, Washington attorney Kenneth R. Feinberg will have "broad discretion" in determining what compensation packages executives are awarded, including the top 25 decision makers at General Motors, GMAC, Chrysler, and Chrysler Finance.

For its part, as it emerges from bankruptcy, Chrysler's union retiree trust (VEBA) will own 55% of the company, with Fiat getting a 20% share that can grow to a max of 35%. The U.S. and Canadian governments split the rest. If the Fiat-Chrysler deal is any indication, General Motors may see a quick exit from bankruptcy as well, even without a Fiat of its own to step in and help. Now they just need to get people into showrooms with cash in hand.

[Sources: Chrysler, The New York Times | Photo by Sean Gallup/Getty]

Continue reading Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately

Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately originally appeared on Autoblog on Wed, 10 Jun 2009 13:28:00 EST. Please see our terms for use of feeds.

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Congressional letter alleges Nardelli and Chrysler failed to disclose more lucrative offer for Viper

Chris Paukert — Fri, 05 Jun 2009 13:59:00 EST

Filed under: Convertible, Coupe, Performance, Government/Legal, Supercars, Chrysler, Dodge, Earnings/Financials

In a letter from California Congressman Darrell Issa to Chrysler's Bob Nardelli, the Auburn Hills executive is charged with failing to disclose information regarding the sale of the Dodge Viper line.

According to the letter obtained by Autoblog from a source close to the situation, the Republican congressman cites Nardelli's explanation as part of the automaker's bankruptcy proceeding that there was "a lack of 'purchaser interest in response to the offering of Chrysler's Connor Avenue Viper manufacturing plant for $10 million." And yet, the letter states, "The Committee has conducted interviews and reviewed materials that clearly show there was in fact one purchaser willing to pay $35 million to purchase the Viper line."

The communication indicates that discussions were held as early as February between Chrysler's emissaries and Joseph Moch Sr. and Joseph Moch Jr. to buy all of the company's Viper-related assets. Further, an oral agreement was reportedly reached in April, with an acquisition agreement drafted later that month for $35 million - substantially more than the $10 million Chrysler was reportedly seeking for the Connor Avenue plant.

Despite the offer from Moch and apparent interest from other companies, the letter notes that Chrysler only reported a single bid for its Viper business to the bankruptcy court's Judge Arthur Gonzalez - the much smaller $5.5 million offer from Devon Motor Works reported last week. In the letter, Congressman Issa warns Nardelli:

"Failure to make this disclosure may have been illegal if you knowingly made false statements in response to questions under oath."

Perhaps the central question is: Why would Nardelli and Co. fail to disclose the Moch offer? Issa's letter offers a theory:

As you know, the Fiat group includes Ferrari, a Viper competitor in the sports car market. If it is the case that Fiat used its "hard-fought" superior bargaining position to establish as a condition of the merger a requirement that Chrysler allow the Viper brand to disappear in order to reduce competition for Ferrari, this too must be presented to the court.

Issa goes on to urge Nardelli to "disclose all legiimate offers for Viper to the court at the hearing," (which is slated to occur today, June 5) as well as "all records and communications between Chrysler and its agents with Joseph Moch Sr., Joseph Moch Jr., and their legal representatives."

So... did Nardelli and Chrysler really fail to disclose more lucrative offers for the Viper - possibly because of pressure from new parent Fiat? Stay tuned.

Congressional letter alleges Nardelli and Chrysler failed to disclose more lucrative offer for Viper originally appeared on Autoblog on Fri, 05 Jun 2009 13:59:00 EST. Please see our terms for use of feeds.

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Nardelli apologizes for mistakenly saying plant will remain open

John Neff — Fri, 08 May 2009 16:59:00 EST

Filed under: Plants/Manufacturing, Chrysler

There are some things about which you never want to misspeak. Your wife's birthday, your child's age and we can now add plant closings to that list. On the day Chrysler LLC filed for Chapter 11 bankruptcy, CEO Robert Nardelli was on the phone with Wisconsin Gov. Jim Doyle and the state's congressional delegates. During the call, Nardelli was asked if the state's plant in Kenosha that employs 800 people would remain open. The outgoing Chrysler CEO (as soon as this whole bankruptcy thing gets cleared up) replied in the affirmative, which unfortunately is not the case. Kenosha is one of eight plants that Chrysler will close in the U.S. as outlined in its restructuring plan. Nardelli has sent a letter apologizing for the mistake, claiming he mistook the Kenosha plant for one that's going to be built in Trenton, MI to assemble the automaker's next line of engines. While it was probably an honest mistake made by a man who is under more stress right now than the average executive, his gaff is tantamount to telling your in-laws that little Jimmy is four when he's really six, except in this case 800 people lose their jobs, so maybe it's worse.

[Source: jsonline.com | Photo by Brendan Hoffman/Getty Images]

Nardelli apologizes for mistakenly saying plant will remain open originally appeared on Autoblog on Fri, 08 May 2009 16:59:00 EST. Please see our terms for use of feeds.

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Breakdown of Chrysler's Big Day [w/POLL]

John Neff — Thu, 30 Apr 2009 14:00:00 EST

Click above to take poll after the jump

It's not often your company both files for bankruptcy and gets new owners in a single day, but that's just what happened to Chrysler today. We've had some time to digest all the details after President Obama's press conference at noon, and here's what we know...

Blame it on the creditors - President Obama cited Chrysler's creditors' refusal to accept a debt-for-equity swap as the main reason filing for Chapter 11 was the only option left.
Chrysler divided - 55% will be owned by the Voluntary Employee Beneficiary Association (VEBA), 10% shared proportionally between U.S. and Canadian governments, 20% owned by Fiat.
Fiat's got goals - Remaining 15% of company will be distributed to Fiat in three 5% increments for meeting the following goals: creating U.S.-built 40-mpg vehicle platform, providing a U.S.-built fuel-efficient engine family and giving Chrysler access to global distribution network.
Nardelli nixed - Current Chrysler CEO Robert Nardelli will leave after the alliance with Fiat is completed and the company emerges from bankruptcy, though he has stated that he was not asked to leave. UPDATE: Former CEO Tom LaSorda will retire and Chrysler's President Jim Press will be sticking around.
GMAC gets the job - Chrysler Financial has been replaced by GMAC as Chrysler's preferred lender for wholesale and retail transactions.
In-and-Out - Chrysler and the U.S. Auto Task Force estimate the company will emerge from bankruptcy in 30 to 60 days.
Dealerships to be cut -- No surprise, but Chrysler's dealer network will be cut down as part of the restructuring. No hard numbers are available yet, but expect details to follow in the next 24 hours.
Business as usual - Chrysler will largely run as normal in the interim, being funded by government-backed debtor-in-possession financing; warranties will be honored, suppliers paid and dealers supplied with inventory, but no new vehicles will be built until bankruptcy terms are finalized.

Follow the jump to our informal poll and read the official press release from Chrysler, and check out some more good analysis from our friends over at thedetroitbureau.com.

[Image: Bill Pugliano/Getty]

Continue reading Breakdown of Chrysler's Big Day [w/POLL]

Breakdown of Chrysler's Big Day [w/POLL] originally appeared on Autoblog on Thu, 30 Apr 2009 14:00:00 EST. Please see our terms for use of feeds.

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That was fast: Chrysler and Fiat agree on partnership framework of a global alliance

John Neff — Mon, 30 Mar 2009 13:48:00 EST

Filed under: Europe, Chrysler, Fiat

Not long after the President concluded his televised press conference today, Chrysler released a statement saying that it and Fiat have already reached an "agreement on a framework of a global alliance".

The President announced that the U.S. government would supply Chrysler with sufficient capital (up to $6 billion) to operate for 30 days while it pursues a partnership with Fiat, but apparently Chrysler was farther along in its talks with Fiat than the President and his Auto Task Force realized. While terms of the arrangement have not been revealed, we do know that Fiat will provide Chrysler with product, platforms and technologies, as well as potentially use existing Chrysler manufacturing facilities to build its own vehicles in the U.S. In exchange, Fiat will get a stake in Chrysler that the administration has demanded will not become a controlling stake until the automaker has paid back all of the federal loans it received.

Follow the jump for Chrysler's official statement and stay tuned as more details about the Chrysler/Fiat hook up are revealed.

UPDATE: Chrysler has released a corrected statement that says it's only agreed with Fiat on a "framework of a global alliance," but that no deal with the Italian automaker to partner up has been made yet. So they've basically agreed on what a Chrysler-Fiat mashup would look like, but not on whether they're going to do it.

[Source: Chrysler]

Continue reading That was fast: Chrysler and Fiat agree on ~~partnership~~ framework of a global alliance

That was fast: Chrysler and Fiat agree on ~~partnership~~ framework of a global alliance originally appeared on Autoblog on Mon, 30 Mar 2009 13:48:00 EST. Please see our terms for use of feeds.

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VIDEO: Chrysler's Nardelli makes case for "Why Fiat Works"

Jeremy Korzeniewski — Fri, 20 Mar 2009 08:31:00 EST

Filed under: Government/Legal, Videos, Chrysler, Earnings/Financials, Fiat

Click above to view the video after the jump

To go along with the email that was sent to Chrysler employees, CEO Bob Nardelli is now starring in his very own video where he continues to extol the virtues of a partnership with Fiat. After stating that Chrysler is clearly a viable company on a standalone basis, Nardelli goes on to say that the Detroit-based automaker's future would be "significantly enhanced" with a Fiat alliance. How so?

First, Chrysler stands to gain plenty of impressive technology, including Fiat's new Multiair engine technology. Furthermore, new vehicle platforms could be introduced to the United States market - including the diminutive Fiat 500 - in segments that Chrysler currently fares poorly.

According to Nardelli, all of these developments would save Chrysler plenty of money and would allow the American automaker to repay its federal loans in a more timely fashion. In any case, Chrysler has until March 31st to prove to President Obama's Task Force that it's just a few billion dollars away from becoming a viable company. Stay tuned.

Continue reading VIDEO: Chrysler's Nardelli makes case for "Why Fiat Works"

VIDEO: Chrysler's Nardelli makes case for "Why Fiat Works" originally appeared on Autoblog on Fri, 20 Mar 2009 08:31:00 EST. Please see our terms for use of feeds.

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Chrysler values Fiat partnership at $10 billion

John Neff — Tue, 17 Mar 2009 11:29:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials, Fiat

In an email to employees, Chrysler Corp. CEO Bob Nardelli has valued his company's potential partnership with Fiat at around $10 billion. That number is comprised of things like the cost of developing new vehicles that Chrysler would incur on its own, but should pocket in a tie-up with Fiat, which would provide the Auburn Hills-based automaker with ready made small cars to sell. Selling Chrysler-badged Fiats in the U.S. would not only save Chrysler money, it would also save years of development time and countless sales lost from not having a suitable small car to sell. Fiat would also likely utilize a portion of Chrysler's production capacity in North America to build its own cars for sale here, which would save a number of Pentastar employees' jobs and maybe even create some more.

Nardelli told his employees that the value of partnering with Fiat is greater than the total amount of money that Chrysler has requested (so far) from the government, which stands at around $9 billion. Both, however, are related, as partnering with Fiat, which would involve the Italian company taking up to a 35% stake in Chrysler and getting access to production capacity and distribution networks in the U.S. in return for supplying vehicles and engines, requires the approval of the President's Auto Task Force. Fiat chief Sergio Marchionnne has already met with the Task Force, as has Chrysler, which has a lot of work to do getting concessions from the UAW and its bondholders before a March 31st deadline. Otherwise, the government may decide not to grant Chrysler its current request of $5 billion in loans, which could scare Fiat away. Chrysler claims it can survive even if the partnership with Fiat falls through, but for the automaker's sake, we hope it doesn't.

[Source: Washington Post | Photo by Brendan Hoffman/Getty]

Chrysler values Fiat partnership at $10 billion originally appeared on Autoblog on Tue, 17 Mar 2009 11:29:00 EST. Please see our terms for use of feeds.

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How much does Nardelli really earn? Could be much more than $1

Jonathon Ramsey — Wed, 18 Feb 2009 18:04:00 EST

Filed under: Etc., Government/Legal, Earnings/Financials

The president decreed that CEOs running banks that received TARP funds couldn't be paid more than $500,000 each year. Chrysler isn't a bank, yet it has received TARP funds, and its CEO, Bob Nardelli, is well under the $500,000. Or at least, he might be. During recent Congressional hearings Nardelli was asked if he'd take a pay cut to $1 a year, and he said he would; the only thing is, he was already making $1 a year.

When Nardelli joined Chrysler in 2007, he signed on for an annual paycheck of $1. The question is, is that all he's making? Neither Chrysler nor parent company Cerberus will say, and as a private company, Cerberus isn't compelled to. On the other side of the automaker CEO coin, it has been revealed that GM CEO Rick Wagoner is only getting a dollar and no bonus on top of that.

The issue certain people want addressed is whether taxpayer funds are being vacuumed into CEO bank accounts. In Chrysler's case it's not so clear how much Nardelli makes nor where any amount more than $1 is coming from -- Cerberus has various interests outside of Chrysler which could fund any theoretical bonus Nardelli gets.

[Source: ABC News]

How much does Nardelli really earn? Could be much more than $1 originally appeared on Autoblog on Wed, 18 Feb 2009 18:04:00 EST. Please see our terms for use of feeds.

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Nardelli confirms Chrysler hard at work on new Durango, 300 and Charger

Jonathon Ramsey — Sat, 24 Jan 2009 10:02:00 EST

Filed under: Etc., Chrysler

Chrysler chieftan Bob Nardelli sent a letter to "all employees, dealers, suppliers and other stakeholders" to explain what's happening at the smallest of the Detroit trio. Everything done now falls under one of three umbrellas: enhancing the core, which is improving products, quality, and dealer and customer relations; extending the business with new products or by growing existing products into new areas; and expanding the market with global alliances to fill gaps in the product portfolio.

At the bottom line, Chrysler has lowered its fixed costs by more than $3.4 billion, and has also saved money by achieving the lowest warranty claim rate in the company's history over the past 12 months. Some of that savings - and the bridge loan - are being poured into product renewals: Chrysler plans 24 new vehicle launches from now to 2011, including the Jeep Grand Cherokee, Dodge Charger and Durango, and the Chrysler 300.

The push into technologies and segments will commence in part with Chrysler's ENVI electric vehicle program, the new Phoenix V6 engine, and the potential tie-up with Fiat. The Pentastar aims to have one electric car in production by 2010, four in production by 2013.

The Fiat tie-up would give the Italian company a 35% stake in Chrysler in return for Chrysler getting access to Fiat's small car platforms. The deal is still pending some serious due diligence, but no money would change hands, and Nardelli reassures his readers that none of the taxpayer money would go to Fiat. Nardelli also mentions that the union would also give Chrysler a jedi tutor in the area of restructuring, since Fiat only recently turned itself around. Follow the link for the rest of Nardelli's words.

[Source: The Scoop]

Nardelli confirms Chrysler hard at work on new Durango, 300 and Charger originally appeared on Autoblog on Sat, 24 Jan 2009 10:02:00 EST. Please see our terms for use of feeds.

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GM gets its $4 billion, Chrysler still waiting

Jonathon Ramsey — Fri, 02 Jan 2009 10:58:00 EST

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

On Monday, December 29, Chrysler and General Motors were supposed to get the first installments of its allotted funds from the $17.4 billion dollar bridge loans. On Wednesday, GM got it's $4 billion. Chrysler, on the other hand, is still "finalizing the details of our financial assistance." The U.S. Treasury - the body disbursing the funds - didn't have much to say beyond that, either, merely reiterating that it wants to get the deal done within a timeline that satisfies Chrylser's funding needs.

While we wonder what the holdup is, we have no reason to believe that Chrysler won't get its money. It is unlikely that anything has happened in the past three weeks to make the government go "On second thought..." We also wonder how Chrysler plans to meet the next deadline: by February 17, GM and Chrysler need to have submitted plans to demonstrate their long-term viability; on March 31, a putative "car czar" will decide whether those plans are actually worth anything. The idea that Chrysler can demonstrate sound health over the long-term in just 45 days is a head-scratcher, but hey, some folks didn't even think Chrysler would still be here, so that's got to count for something.

[Source: Automotive News, sub. req'd]

GM gets its $4 billion, Chrysler still waiting originally appeared on Autoblog on Fri, 02 Jan 2009 10:58:00 EST. Please see our terms for use of feeds.

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One down, one to go: Detroit 3 CEOs begin House testimony

John Neff — Fri, 05 Dec 2008 10:49:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM

Having watched each of the Detroit 3 CEOs take tough questions from the Senate Banking Committee for six hours yesterday, we've returned to the couch today to watch General Motors CEO Rick Wagoner, Ford CEO Alan Mulally, Chrysler CEO Bob Nardelli and Ron Gettelfinger, President of the United Auto Workers union, visit House members of the Financial Services Committee led by Rep. Barney Frank (D-Massachusetts).

We were actually surprised at how well yesterday's hearings went for the Detroit 3. There was far less grand standing by politicians this time around, due largely in part to the lesson learned by each CEO after that whole private jet fiasco. A couple of yesterday's creative solutions for the mess in Motown included a "pre-packaged bankruptcy" in which financing for restructuring would be secured beforehand, as well as a renewed interest in seeing GM and Chrysler follow through on their erstwhile attempt to merge a few months ago. Since Ford's position is more secure than that of GM and Chrysler, Alan Mulally looked bored most of the day, while his colleague Bob Nardelli got the grilling of a lifetime. Senators seemed particularly interested in why Chrysler's owner, the private equity firm Cerberus, couldn't just infuse the Auburn Hills-based automaker with more money.

While senators yesterday seemed to take the situation much more seriously this time around, we've just finished watching opening statements made by members of the House of Representatives in the Financial Services Committee and were less than impressed. It appears the soap boxes are out and spot lights are on.

[Photo by Chip Somodevilla/Getty]

One down, one to go: Detroit 3 CEOs begin House testimony originally appeared on Autoblog on Fri, 05 Dec 2008 10:49:00 EST. Please see our terms for use of feeds.

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Nardelli: I would sacrifice my job to save Chrysler

John Neff — Thu, 04 Dec 2008 15:30:00 EST

Filed under: Government/Legal, Chrysler

During today's Senate hearings of the Detroit 3 automakers, U.S. Senator Robert Bennett (R-Utah) spent much of his time on the mic talking about the cost savings that would be realized if General Motors and Chrysler LLC merged. He argued that prior talks held between the two companies has already laid the groundwork for a merger and that estimates peg annual cost savings at $8-10 billion for the combined company. Bennett then remarked that one reason a GM/Chrysler merger didn't happen the first time around was because many people in upper management, possibly including one of the two CEOs sitting before him, would basically lose their jobs. When asked if he would still want government assistance if Congress made the merger of GM and Chrysler a condition, Nardelli responded, "The first job that would go would be mine, but if in fact that's the criteria that means we would get money to save Chrysler and the people who have worked there for 80 some years, I would do it." Wow.

Of course, we're fairly certain Mr. Nardelli has a decently sized nest egg to fall back on, and we'd jump at the offer to make a graceful exit if we were the CEO of Chrysler, too. Nevertheless, Nardelli's comment came off as sincere and was commended by Senator Chris Dodd (D-Connecticut) who is chairing the hearings.

[Photo by Chip Somodevilla/Getty]

Nardelli: I would sacrifice my job to save Chrysler originally appeared on Autoblog on Thu, 04 Dec 2008 15:30:00 EST. Please see our terms for use of feeds.

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Wagoner arrives for Senate hearing in Volt mule

John Neff — Thu, 04 Dec 2008 10:29:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM

General Motors CEO Rick Wagoner has arrived in Washington to deliver testimony at Senate hearings scheduled for today and tomorrow, and as we reported late yesterday, his transportation this time was not a private jet, but rather a series hybrid Chevy Volt mule in the body of a Chevy Cruze. Ford CEO Alan Mulally also ditched his private plane for a ride down to DC in a Ford Escape Hybrid, while Chrysler CEO Bob Nardelli made the trip in a Chrysler Aspen Hybrid. UAW President Ron Gettelfinger flew down, but on a commercial flight (he never had a private jet in the first place and it likely would've been awkward if he chose one automaker's vehicle over the other two).

Testimony will be given by the four men and a number of other witnesses today and tomorrow, though it still appears as if there aren't enough votes in the Senate to get federal aid for the automakers passed immediately. Even if aid in the form of government loans is approved, there's still the matter of where the money will come from. The only two options on the table are converting $25 billion in already approved loans for investment in green technology to be used by the automakers to keep their businesses afloat, or carving out the money from the $700 billion in aid that Congress has already approved for the financial industry. We'll be keeping an eye on what's happening in Washington today and tomorrow, so stay tuned.

[Photo by Win McNamee/Getty]

Wagoner arrives for Senate hearing in Volt mule originally appeared on Autoblog on Thu, 04 Dec 2008 10:29:00 EST. Please see our terms for use of feeds.

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SNL takes on the Detroit 3 bailout

Chris Shunk — Tue, 25 Nov 2008 09:01:00 EST

Filed under: Videos

Click above to watch video after the jump

Saturday Night Live has been on a roll of late, with a string of strong skits centered around the Presidential election and the ongoing financial crisis. So it was only a matter of time before SNL took on the auto industry to task, using last week's Congressional hearings as the backdrop. As one might expect, SNL writers showed no mercy for Allan Mulally, Bob Nardelli, and Rick Wagoner, and Congress didn't look too bright, either. The omnipresent joke of the entire eight-minute skit was a long, consistent shot at the quality of Detroit 3 products. Even though it's an obvious exaggeration, we're guessing the shots are a sure-fire sign that commercials touting the quality improvements at Ford and GM have fallen on deaf ears. Hit the jump to view SNL's latest.

[Source: DKKonservo]

Continue reading SNL takes on the Detroit 3 bailout

SNL takes on the Detroit 3 bailout originally appeared on Autoblog on Tue, 25 Nov 2008 09:01:00 EST. Please see our terms for use of feeds.

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Chrysler CEO Nardelli responds to GM announcing merger talks are off

John Neff — Fri, 07 Nov 2008 15:28:00 EST

Filed under: Chrysler, GM, Earnings/Financials

Chrysler LLC just released a statement from Bob Nardelli in which the CEO responds, in a way, to General Motors' third quarter earnings report. In the report, GM acknowledged that it had "recently explored the possibility of a strategic acquisition". While not citing Chrysler by name, we all know the strategic acquisition in question is the Auburn Hills-based automaker currently owned by private equity group Cerberus Capital Management. Nardelli responds by comically not confirming that his company was GM's target, reiterating for the umpteenth time that Chrysler doesn't talk about its business dealings with other companies because they often lead nowhere, like in this case we suppose. Of course, though his response confirms nothing, its mere existence confirms everything. All Nardelli does say is that Chrysler will continue to explore "multiple strategic alliances" that will aid its own turnaround effort. Carlos Ghosn, the prominent figurehead of Nissan/Renault whose companies were also on the short list of merger partners for Chrysler, should check his voicemail right about now.

Check out Nardelli's statement in his own words after the jump.

[Source: Chrysler, LLC]

Continue reading Chrysler CEO Nardelli responds to GM announcing merger talks are off

Chrysler CEO Nardelli responds to GM announcing merger talks are off originally appeared on Autoblog on Fri, 07 Nov 2008 15:28:00 EST. Please see our terms for use of feeds.

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Bob Nardelli to Employees: We're cutting 25% of remaining white-collar jobs

Damon Lavrinc — Fri, 24 Oct 2008 12:58:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler

"These are truly unimaginable times for our industry." That's how Chrysler CEO, Bob Nardelli, starts off a recent email to employees, just before dropping the bomb that the automaker intends to cut 25% of its salaried workforce beginning next month and continuing through the end of the year.

According to reports, Chrysler currently has 17,332 salaried workers, so 4,333 workers will be offered "voluntary" retirements and buyouts, while those who don't accept the automaker's offer, which includes "enhanced benefits" of cash and new vehicle vouchers, will be laid off. This is in addition to the 1,000 white-collar jobs Chrysler cut at the end of September.

Chrysler also plans to cut back on "all discretionary and overhead expenses and reduce capital expenditures not connected to major product programs." Nardelli admits that the company can't continue as it has in the past and that these tactics are an attempt to right-size the company to "reflect declines in volume." While we understand the trials and tribulations faced by Chrysler, Nardelli's email has a "this is going to hurt me more than you" ring to it. Judge for yourself after the jump.

Continue reading Bob Nardelli to Employees: We're cutting 25% of remaining white-collar jobs

Bob Nardelli to Employees: We're cutting 25% of remaining white-collar jobs originally appeared on Autoblog on Fri, 24 Oct 2008 12:58:00 EST. Please see our terms for use of feeds.

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Email blast: Nardelli tells employees sales will worsen

Jeremy Korzeniewski — Wed, 18 Jun 2008 15:33:00 EST

Filed under: Chrysler, Dodge, Earnings/Financials

Chrysler, already hurt by slow sales of its bread-and-butter pickups and SUVs, doesn't think things will improve any time soon. According to an email sent by CEO Bob Nardelli to Chrysler employees, he believes that sales will continue to spiral down the drain. So far, though, the third of the Detroit 3 isn't ready to announce any additional layoffs or plant closures. Chrysler must have had some really foresighted, or extremely pessimistic, people on the team who set early '08 predictions, as Nardelli claims that the company he's leading is still on track to achieve its goals.

Dodge has already shut the doors of its Saltillo plant in northern Mexico in an effort to "adjust" inventory levels of the current Ram pickup. The next vehicle set to debut for Dodge is the completely new Ram, which will appear just as gas prices have seriously trimmed truck sales. For Chrysler, the Hornet can't come soon enough.

[Source: The Detroit News, Photo by Bill Pugliano/Getty]

Email blast: Nardelli tells employees sales will worsen originally appeared on Autoblog on Wed, 18 Jun 2008 15:33:00 EST. Please see our terms for use of feeds.

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Nardelli: Chrysler open to more partnerships

Jeremy Korzeniewski — Wed, 28 May 2008 08:32:00 EST

Filed under: Hybrid, SUV, Green, Plants/Manufacturing, Chrysler

Last month, a major announcement was made regarding an effort between Nissan and Chrysler to share products. Specifically, Nissan will build a small car for Chrysler and receive a large truck in return. It seems as if the Pentastar brand could use some more help when it comes to offering the types of vehicles that the public wants as quickly as possible. To that end, Chrysler CEO Bob Nardelli says, "If we can have similar arrangements ... and it makes financial sense and supports our dealer network relative to what customers are telling them they want, we're going to go do it." What customers want is fuel efficient vehicles, something which Chrysler is not exactly well positioned with at the moment.

In related news, Nardelli also mentions that Chrysler sees hybrids and electric cars as the most viable options moving forward to reduce emissions and fuel consumption. The first hybrid vehicles from Chrysler are expected to be the Dodge Durango and Chrysler Aspen SUV's, which use a version of the dual mode hybrid system that is currently offered by GM on the Tahoe and Yukon.

[Source: The Detroit Free Press]

Nardelli: Chrysler open to more partnerships originally appeared on Autoblog on Wed, 28 May 2008 08:32:00 EST. Please see our terms for use of feeds.

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Chrysler won't turn a profit in 2008, but still on track to achieve goals

Jeremy Korzeniewski — Mon, 21 Apr 2008 07:34:00 EST

Filed under: Chrysler, Earnings/Financials

Despite the fact that the beleaguered automaker has not yet turned a profit since its unceremonious departure from Daimler to Cerberus, Chrysler CEO Bob Nardelli says that the company is still on track. "Through the first quarter we are still on plan relative to the pro forma and the targets we established for 2008, in spite of some of the economic winds that are hitting us," he says. In order to turn last year's $1.6 billion loss into positive cash flow, Chrysler will be relying heavily on joint-partnerships like the one it just announced with Nissan (but probably not Fiat) as well as with new and advanced engineering. Nardelli highlights interiors, upcoming technology integration and alternative powertrains as potential new incoming-generating features for their line of vehicles.

[Sources: Automotive News / The Detroit News]

Chrysler won't turn a profit in 2008, but still on track to achieve goals originally appeared on Autoblog on Mon, 21 Apr 2008 07:34:00 EST. Please see our terms for use of feeds.

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New York 2008: Nardelli promises aspirational vehicles from Chrysler

Frank Filipponio — Wed, 19 Mar 2008 10:08:00 EST

Filed under: New York Auto Show, Chrysler

We are just back from the kickoff keynote speech for the 2008 New York Auto Show and have to wonder where in the Big Apple we can score some of what Bob Nardelli is smoking. While his words sounded somewhat encouraging, they were about three months old for the most part and didn't sound terribly convincing to most ears. He outlined Chrysler's 4-point plan for the future, telling the assembled breakfast-seekers that enhancing the core, extending business, expanding the market, and executing flawlessly are the keys to Chrysler's future. OK, sure. That could apply to just about any enterprise. Using the company's global assets to reduce redundancies is obviously going to help, cutting non-profitable models and reducing the number of options and packages makes a lot of sense, too. His main focus was on product, pointing out that designing and building "aspirational" products was vital to getting people back into the Chrysler fold. We can understand how that leads to something like the Challenger, but the Journey doesn't seem like it meets that criteria as well. Maybe the briefly mentioned Grand Voyager and a Cherokee with a "special" roof will surprise us later today. We shouldn't be too hard on Nardelli and Chrysler, as the company is working on turning itself round. Unfortunately, this company's got a large turning radius.

New York 2008: Nardelli promises aspirational vehicles from Chrysler originally appeared on Autoblog on Wed, 19 Mar 2008 10:08:00 EST. Please see our terms for use of feeds.

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