The New York Times has just announced that former Home Depot CEO, Robert L. Nardelli is going to be appointed as the new CEO of Chrysler. Earlier this year Nardelli was ousted from his chief executive position at Home Depot due to arguments with stock holders over his enormous pay package.
Chrysler's new owner Cerberus Capital Management officially took over Chrysler on Friday and now the group has appointed a new CEO to help turn the automaker around. Nardelli was chosen due to his turn around expertise.
According to The New York Times, this opportunity is Nardelli's chance to rebuild his reputation, which was tarnished after the troubles with Home Depot. He finally given a severance package worth $210 million.
This is the second time that a Detroit automaker has appointed a CEO from outside the auto industry within the last year. Alan Mulally was recently appointed as the CEO of Ford from his former position at Boeing.
The interesting thing about Nardelli's new position is that if he does not turn the automaker around he will not be paid. His entire package is based on performance, so if he doesn't improve Chrysler, he will not be paid.
This is a difficult time for the U.S. automakers, since July was the first time in history that their combined market share was lower than that of the imports in the U.S. Chrysler's sales are continuing to decline and last month the automaker slipped to 5th place behind GM, Toyota, Ford, and Honda.
Former Chrysler CEO Tom. LaSorda will now serve as vice chairman and president.
The big question on everyone's minds is: Will a non-car guy be able to turn the company around?
Chrysler is also going to start using its classic Pentastar logo again to show that the automaker is returning to its American roots. The logo was originally dropped in 1998 with Chrysler's merger with Daimler-Benz.
Full Story: The New York Times
Jalopnik has the full press release
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Comments (14)
It is interesting that Cerberus would pick a guy that has had "managing style" issues in the past. They must have a lot of faith in him, because his past time at Home Depot was pretty rocky.
http://www.autosavant.net/2007/08/bob-nardelli-will-run-chrysler.html
And, furthermore, he has no industry experience - Cerberus must see something in Bob Nardelli.
B Moore - Autosavant.net
Posted by Brendan Moore | August 6, 2007 2:29 AM
Posted on August 6, 2007 02:29
So that's how they're going to handle this lifetime warranty. It's all going to be do it yourself now.
Posted by Darmok | August 6, 2007 8:09 AM
Posted on August 6, 2007 08:09
^ROFL
They'll probably have oil change, tire rotation, and wiper replacement classes at all the dealerships.
Posted by Gary | August 6, 2007 10:53 AM
Posted on August 6, 2007 10:53
I don't understand how they can hire a guy that has clearly attributed with damaging the company he used to work for. How can his stint at Chrysler be any different?
Posted by fred | August 6, 2007 10:53 AM
Posted on August 6, 2007 10:53
Darmok your too funny... thats the funnyest thing ive heard about this issue lol...
Posted by dennisil | August 6, 2007 11:02 AM
Posted on August 6, 2007 11:02
Nardelli is the WORST possible choice.
This guy nearly ran Home Despot into the ground. Because he was so inept....Lowes was able to obtain a solid footing in a market that HD, under any other competent leadership, should have snuffed way earlier in the game.
I guess he was too busy counting his stack of gold.
Now...how DO you get that 08 Jeep off the top rack in isle 3?
Posted by Gersonic | August 6, 2007 11:10 AM
Posted on August 6, 2007 11:10
Now you can have any color Chrysler you want...so long as it's orange.
Posted by WS | August 6, 2007 12:29 PM
Posted on August 6, 2007 12:29
He looks like Quasimoto.
Posted by Noya | August 6, 2007 7:13 PM
Posted on August 6, 2007 19:13
Wow, his $210 million severance package from Home Depot is almost equivalent to the average Chrysler plantworker's package.
Posted by justkidding | August 7, 2007 1:39 PM
Posted on August 7, 2007 13:39
Its a very interesting choice indeed. Chrystler's new CEO was fired from his previous company while Ford's CEO left after managing to get Boeing Civil Aviation back on top. Chrystler's CEO has auto experience while Ford's CEO has years of aerospace engineering experience...
The contrast is quite striking...
Posted by A.J. Subram | August 8, 2007 3:35 AM
Posted on August 8, 2007 03:35
Its a very interesting choice indeed. Chrystler's new CEO was fired from his previous company while Ford's CEO left after managing to get Boeing Civil Aviation back on top. Chrystler's CEO has auto experience while Ford's CEO has years of aerospace engineering experience...
The contrast is quite striking...
BUT...
If past events hold true, the auto industry doesn't need someone with automotive experience. It needs someone with management experience in lean manufacturing and just in time inventory etc. This is how Toyota is making money, by reducing costs associated with making a vehicle. If Chrystler can figure this out, they'll be able to become financial secure again.
Posted by A.J. Subram | August 8, 2007 3:38 AM
Posted on August 8, 2007 03:38
They hire a guy who has a horrible track record and no experience with cars?
I'd probably make a better choice. At least I have a passion for cars. Hey Cerberus, I'll take $100,000 a year.
Posted by David | August 8, 2007 5:02 PM
Posted on August 8, 2007 17:02
Nardelli is going to run Chrysler in the ground. I worked in a dept that saved Chrysler $20,000,000 in 11 months and how were we rewarded?? We got the boot two days after being told we did a great job. They said there was no funding for our department? I know they did not pay us very much to begin with so where did the money go? Good luck getting warranty issues taken care of now! Claims wont be getting paid like they use to. CUstomer service? HAHAHAHA Good luck.
Posted by Brian | December 9, 2007 10:51 PM
Posted on December 9, 2007 22:51
I actually have a great idea for your cars and SUV. It is something to my knowledge no one has come up with. I am trying to contact the person or persons I need to talk to about this, it is a great idea. I am also contacting some other dealerships to talk about this idea possibly being a thing of the future. I guess who I hear from first will hear the idea first.
Thanks,
Donna Bostic
Posted by Donna Bostic | February 26, 2008 3:19 PM
Posted on February 26, 2008 15:19