The New Chrylser
Bob's First 100 Days
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Plenty has been written about the trials and tribulations experienced by many of the auto manufacturers that are competing for every penny in the current U.S. market. And if you have been reading closely, you will see that just about every single player is struggling with at least one or two of their current model lines.
In some cases, it is more pronounced--such as when you see that Buick seems to have an early winner on its hands in the new crossover Enclave, but is struggling to keep the dreaded 'rental car' stigma from sinking the mediocre LaCrosse and Lucerne. Even Toyota, the new reigning champ of the global auto market, is seeing certain out-of-step products like the Sequoia and Matrix starting to collect dust. It is just that Toyota has Camrys and Tundras and Prii to keep things on a better than even keel.
So into this choppy water steps The New Chrysler, now free of the well-documented failed "merger of equals" with Daimler (Mercedes-Benz). Chrysler, Dodge and Jeep have always been scrappy brands that historically succeeded in the face of chaos, so the sense of many in the industry was that these uncertain times would be just what Chrysler needed to push itself onto a higher plane. Their new owner, Cerberus, said all the right things before the purchase was completed by reiterating support for the existing management team and overall corporate direction.
2008 Dodge Viper SRT10
But something happened on the path to the recent announcement celebration of The New Chrysler that sent a chill down my back. Cerberus announced the appointment of Bob Nardelli as the new CEO, effectively refuting earlier claims that existing management would continue to lead the new company. Now I do not know Mr. Nardelli, and as a skeptic of most things I read--especially in the new and aggressive online world--I can't imagine that he made that much of a mess at Home Depot. (Not that a $210 million good-bye present is ever a bad thing!) But trying to put my feet in the shoes of an existing Chrysler/Dodge/Jeep employee told me how much this will knock them backward. Uncertain times require certainty, and thus far, Mr. Nardelli's appointment looks to have more to do with an ex-GE good ol' boy network within Cerberus than finding the right automotive captain to navigate the upcoming rough seas.
So it is with this scenario in mind that I offer my own "First 100 Days" list of achievements for Mr. Nardelli (and Cerberus) to help aim toward for near-term success:
- "Get Out There With The People"--Take a page or two from Ford's new CEO Alan Mulally and get yourself photographed and seen with your new employees, dealers, and current (and future) customers. Mulally's stunts could have been seen by many as somewhat insincere, but the benefit has already hit home and he has calmed many in the frightened FoMoCo workforce and dealer network.
- "Look For the Union Label"--I was sorry to see ever-so-slightly demoted Tom LaSorda shaking hands with Ron Gettelfinger at the opening ceremonies of the critical Chrysler/UAW contract discussions. Not that he is unqualified to tackle such a difficult project, but I feel that Nardelli's participation would help establish an even playing field with the UAW. Now they must feel that they will be forced to negotiate long-standing agreements with a gentleman that will probably have a new title and company on his business card within the first year of the new employment contracts.
- "Sure I Know Cars...Look, I Even Know How to Drive One"--Playing the "smart managers know their limitations and surround themselves with the right people" card will not fly for long. Within 100 days, Nardelli needs to make it very clear to his employees that he really was not brought in by Cerberus for just his organization skills. Show some passion for the sheet metal...display a few wild concepts and then shock all with a commitment to build them...get on TV and make sure the buying public knows that The New Chrysler is not just the latest "burn and turn" target for the typical callous private equity firm. This will not be easy, but as mentioned above, Chrysler has always come out strong from adversity. It is almost as if good times breed bad decisions in Auburn Hills. So Nardelli needs to get out the fact that Chrysler is scared and now ready to do whatever it takes.
Posted on 2007-08-20 | Permalink | 
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