Cerberus announces new management at Chrysler

[DetroitNut90]

Cerberus Capital Management LP announced a stunning management shakeup at Chrysler within two days of taking ownership of the Detroit automaker, bringing in a new chief executive, Robert Nardelli, the hard-driving and controversial former CEO of retailer Home Depot.

Current Chrysler CEO Tom LaSorda will be president and vice chairman of Chrysler, reporting to Nardelli, sources at Cerberus and Chrysler told The Detroit News on Sunday.

Nardelli also will serve as chairman of the board of the new Chrysler LLC. In a major surprise, Wolfgang Bernhard, a Cerberus adviser and former high-ranking Chrysler executive, declined an offer to be chairman of Chrysler.

Eric Ridenour, Chrysler's chief operating officer, will leave the company.

The management changes were surprising, given the recent assurances by Cerberus officials that LaSorda would remain as CEO of Chrysler.

Detroit News

[RJB]

What a joke appointing Nardelli!! This guy is only going to ruin Chrysler after he decimated Home Depot and left with a $210 million prize. Home Depot's stock dropped waayyy down when he was at the helm, I can only imagine what will happen next. They were on the right path with LaSorda I believe, now I'm not so sure.

[Paolino]

What a joke appointing Nardelli!! This guy is only going to ruin Chrysler after he decimated Home Depot and left with a $210 million prize. Home Depot's stock dropped waayyy down when he was at the helm, I can only imagine what will happen next. They were on the right path with LaSorda I believe, now I'm not so sure.

Isn't Chrysler already ruined?

[RJB]

I wouldn't say they are completly ruined...yet. They probably will be once this guy takes the wheel and steers them into an iceburg.

[regfootball]

it's pretty apparent that sometimes the wall street mentality is poisonous for American business. The business world has gotten in America to the point where the suits bite the hand that feeds and run it into the ground.

[Chicagoland]

I found it hard to believe all the predictions of 'return to greatness for Chrysler', simply because they were "going back to US ownerships. Fan-boys were expecting "new Hemi Cuda convertibles coming off the lines this fall", "Plymouth back for 2010!" and "Chrysler buying out Ford"! OK, those are fake, but similar claims were posted all over car-net-ville.

I mean get real, did people really believe the rumours??

Edited August 7, 2007 by Chicagoland

[VenSeattle]

In a major surprise, Wolfgang Bernhard, a Cerberus adviser and former high-ranking Chrysler executive, declined an offer to be chairman of Chrysler.

That tells me everything I need to know.

[Oracle of Delphi]

Funny, I was thinking the same thing!

[Dragon]

sounds on plan.

run Chrysler into the ground further and use it as an excuse to sell off the bits

[quantum110]

I'm sorry can anyone tell me what kind of experience Nardelli has with the automotive industry?

[Dragon]

I'm sorry can anyone tell me what kind of experience Nardelli has with the automotive industry?

the same as Alan Mulally at Ford, none. sometimes fresh thoughts from outside the industry are a good thing

[Dragon]

What a joke appointing Nardelli!! This guy is only going to ruin Chrysler after he decimated Home Depot and left with a $210 million prize. Home Depot's stock dropped waayyy down when he was at the helm, I can only imagine what will happen next. They were on the right path with LaSorda I believe, now I'm not so sure.

didn't profits and revenue nearly double while he was CEO?

[Chicagoland]

Well, maybe it's good ot get new blood, and no 'the good old days will come back soon' attitude.

Too many still think 'imports are a fad, and people will comeback to big RWD vehicles any day now'

the 300 is down in sales, and the Charger/Magnum never took off. Reality is most buyers do not care about: 1960's, old muscle cars, 400 HP, drag racing, and 'retro looks'. Also, sure the Hemi got attention, but who can afford the gas bills? And old thinkers assume that 'all people' wish for V8 RWD cars. Not this day and age, buyers may fondly remember an old Cuda, but then they end up getting a CRV or Camry.

There are too many choices, can't just 'hope Congress bans imports' and just say 'well people are dumb if they dont want a RWD fast car'

In Detroit News, there is article "Car guys culture out of gas". Says it all. They can't base a whole company's future on a Camaro/Challenger that isn't even out yet. Have to offer what sells, and that is value, room, convieniece, MPG, and more. Not just HP and how much a car "looks like an old one".

Edited August 7, 2007 by Chicagoland

[ZL-1]

the same as Alan Mulally at Ford, none. sometimes fresh thoughts from outside the industry are a good thing

I think that's the idea behind it: fresh ideas, someone who can think outside the box.

[haypops]

the same as Alan Mulally at Ford, none. sometimes fresh thoughts from outside the industry are a good thing

Maybe he will introduce car salesman in little orange aprons. When you ask them where to find a nice reliable comfortable car they tell you "if we still carry those you will find it in aisle 17."

[regfootball]

mullaly was in a related industry. he understood the engineering component, the manufacturing component, the labor component. the 'global' component. In many ways, Mullaly is perfect for the job at ford now.

Nardelli might know real esate acquisition, distribution and retail operations, marketing. i doubt he knows jack $h! about what effect re-engineering a crash structure has on a product timetable, etc. Home depot is retail...not manufacturing and design.

[Dragon]

mullaly was in a related industry. he understood the engineering component, the manufacturing component, the labor component. the 'global' component. In many ways, Mullaly is perfect for the job at ford now.

Nardelli might know real esate acquisition, distribution and retail operations, marketing. i doubt he knows jack $h! about what effect re-engineering a crash structure has on a product timetable, etc. Home depot is retail...not manufacturing and design.

is it really that hard to do a little research before slamming somebody?

He hasn't only worked at Home Depot his whole life. Before he became Jack Welch's protege, he started off as an engineer at GE so I think he knows a bit about manufacturing, design and how engineering and how it can effect timetables.

Edited August 8, 2007 by Dragon

[RJB]

This article should give some more insight to this joker.

http://www.autoblog.com/2007/08/07/video-t...s-than-answers/

[BrewSwillis]

the 300 is down in sales, and the Charger/Magnum never took off. Reality is most buyers do not care about: 1960's, old muscle cars, 400 HP, drag racing, and 'retro looks'. Also, sure the Hemi got attention, but who can afford the gas bills? And old thinkers assume that 'all people' wish for V8 RWD cars. Not this day and age, buyers may fondly remember an old Cuda, but then they end up getting a CRV or Camry.

I'll give you the fact that all of the LX sales are down a bit for the month, and that the Magnum never "took off".....but you are dead wrong on the Charger. Charger sales are up 5,300 over last year, with over 72,000 units sold during the first 7 months of the year. The poor sales of the Magnum just show what the Germans refused to accept.....American do not like wagons!! They had a plan to make all of Dodge hatchbacks, wagons, and crossovers. Good thing they reconsidered.

LX numbers are a bit down, as with all Chrysler, and probably other Big 3 numbers.....which is probably due to the economy and gas prices. This does not equal the buyers not liking RWD. The cars are also about to get a refresh, and with the lifetime warranty, it should boost sales back up to at least where they were....which was pretty good.

Thanks to "Stratuscaster" on Allpar.com for the chart.

[Cory Wolfe]

I'll give you the fact that all of the LX sales are down a bit for the month, and that the Magnum never "took off".....but you are dead wrong on the Charger. Charger sales are up 5,300 over last year, with over 72,000 units sold during the first 7 months of the year. The poor sales of the Magnum just show what the Germans refused to accept.....American do not like wagons!! They had a plan to make all of Dodge hatchbacks, wagons, and crossovers. Good thing they reconsidered.

LX numbers are a bit down, as with all Chrysler, and probably other Big 3 numbers.....which is probably due to the economy and gas prices. This does not equal the buyers not liking RWD. The cars are also about to get a refresh, and with the lifetime warranty, it should boost sales back up to at least where they were....which was pretty good.

Thanks to "Stratuscaster" on Allpar.com for the chart.

*cough* Fleets *cough*

2007

300: 44%

Charger: 56%

Magnum: 61%

http://www.fleet-central.com/af/stats2007/cars_web.pdf

2006

300: 28%

Charger: 34%

Magnum: 49%

http://www.fleet-central.com/af/stats2006/cars_web.pdf

2005

300: 21%

Magnum: 32%

http://www.fleet-central.com/af/stats2005/cars_web.pdf

Eh?

Edited August 8, 2007 by blackviper8891

[BrewSwillis]

*cough* Fleets *cough*

2007

2006

2005

Eh?

So they give those cars to fleets, or do they sell them?? The Charger is now a popular cop car.

[VenSeattle]

So they give those cars to fleets, or do they sell them?? The Charger is now a popular cop car.

So is the Ford Crown Victoria which is near 100% fleet...

At 56% fleet, the Charger looks like it's attempting to challenge the CV.

[BrewSwillis]

So is the Ford Crown Victoria which is near 100% fleet...

At 56% fleet, the Charger looks like it's attempting to challenge the CV.

So they should just refuse to sell the cars to fleet and park them in more airport parking lots? UAW plants have to keep cranking out cars if people are buying them or not. If they don't, they would be paying people the same wage just to sit around. The Big 3 needs more flexible plants and a smaller labor force to deal with their declined market share....due to unfair foreign competition.

At least they are selling the cars.

[LosAngeles]

The poor sales of the Magnum just show what the Germans refused to accept.....American do not like wagons!!

Yeah, they do....just happen to be the 7-8 feet up in the air kind with the useless third-row seat only good for the thieves....

They had a plan to make all of Dodge hatchbacks, wagons, and crossovers. Good thing they reconsidered.

Yeah, Dodge really isn't my go-to idea of a hatch maker. Though the right one could take off....Hornet, maybe?

[Intrepidation]

Yeah, they do....just happen to be the 7-8 feet up in the air kind with the useless third-row seat only good for the thieves....

Yeah, Dodge really isn't my go-to idea of a hatch maker. Though the right one could take off....Hornet, maybe?

The Caliber has been a good sales success for them...so hatches can be popular. bet teh styling fools people into thinking it's a small SUV so that's why they buy it. I hate how this country can't get over our big, stupid SUVs and refuses to except more economical hatches because it's "not cool".

[regfootball]

is it really that hard to do a little research before slamming somebody?

He hasn't only worked at Home Depot his whole life. Before he became Jack Welch's protege, he started off as an engineer at GE so I think he knows a bit about manufacturing, design and how engineering and how it can effect timetables.

oh, so he knows how they make light bulbs then. that also explains why the light bulbs are on the main aisle as soon as you enter the store when you go into a home depot.

[Cory Wolfe]

So they should just refuse to sell the cars to fleet and park them in more airport parking lots? UAW plants have to keep cranking out cars if people are buying them or not. If they don't, they would be paying people the same wage just to sit around. The Big 3 needs more flexible plants and a smaller labor force to deal with their declined market share....due to unfair foreign competition.

At least they are selling the cars.

Sales to actual buyers are down. That is the point. Popularity waning? You bet.

[cire]

I think the company needs to integrate a fresh viewpoint into its upper management team, but I have concerns about someone who has been booted out of another company (Is this the type of individual who will truly lead a turnaround?). I don't know if I truly have enough faith in LaSorda after the info leaked a while ago about the Sebring and Nitro performing poorly because the company miscalculated where the competition and market would be at the launch time of these vehicles. I want to see Chrysler LLC succeed, but I am not sure they have the right mixture of talent at the top for this to happen. They need an experienced person that understands and handles the company's existing situations (LaSorda does fill this role to a degree; the miscalculated market statement still bothers me), they need a visionary that can see and execute future possibilities and successes, and they need a true "car man" who understands desirable product and can predict market conditions as well as customers' needs.