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.
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.
The video meant to be presented here is no longer available. Sorry for the inconvenience.
The video meant to be presented here is no longer available. Sorry for the inconvenience.
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