RSS RSS Twitter Twitter
Leftlane - news, reviews, and info for the auto-industry
 
 

Chrysler’s Nardelli: Cerberus not “second guessing” Chrysler purchase

06/11/2008, 12:50 PM

By Drew Johnson

Although Chrysler’s sales have been dropping by double-digit percentages over the last few months, Chrysler CEO Bob Nardelli says that Cerberus is not “second guessing” its decision to purchase the Michigan-based automaker and that business is actually ahead of schedule.

Despite Chrysler’s sales falling by 25.4 percent in May and 19.3 percent on the year, Nardelli is optimistic about the company’s progress and its future. “We are guarded but optimistic,” Nardelli told Automotive News. “We are very encouraged in what we have accomplished.”

Nardelli even said that he expects Chrysler to still be operating independently in three years as there are “clear advantages” to running the company under private ownership. Cerberus Capital Management LP purchased an 80.1 percent stake in Chrysler last August for $7.4 billion.

Nardelli added that Chrysler has no plans to sell its Jeep brand, but that Chrysler “may have to go back and resize” its production operations.

    Print This Post

New car price quote

Zero obligation price quote from a trusted local dealer.
 
 

06/11, 1:37 PM

posted by:

Impulsive

Nardelli needs to go back to lower management … the departmental, time-sheet-sheduling, look-over-a-group-of-four, make-sure-the-doors-are-locked-at-the-end-of-the-day kind of manager … imbecile.

06/11, 1:51 PM

posted by:

johnnycanuck

The right tool for the job. Coming from Home Depot, Nardelli fits that description nicely.

06/11, 2:01 PM

posted by:

xyunya

Impulsive, you can’t judge management based on anecdotal information. We can’t know what and how he operates at Chrysler. We do know what he done (or screwed) at Home Depot. We have information about actions of GM & Ford only because they are public companies and operate within realm of transparency. Chrysler is a private company: they don’t own explanation to what and how they do things. If Cerberus is happy, then Nardeli does very well, if he is fired – he’s screwing up.

06/11, 2:24 PM

posted by:

howsmydriving

He’s no Carlos Ghosn, but it’s too early to know Chrysler’s future. The gas crisis is terrible timing for Chrysler.

06/11, 2:34 PM

posted by:

xyunya

howsmydriving, in retrospect Carlos did not have such a mess on his hands with Nissan. Nissan had technology and quality nailed down. They had unimpressive designs and low morale because of low sales numbers and stock performance. Nardelli has no quality nor technological corporate acumen for todays economy.

06/11, 2:55 PM

posted by:

Impulsive

‘xyunya’ I wrote about nardelli, not the entire group in management. You really think he’ll get fired if they agree with me that he is an incompetent fool, like “Hemiroid’? Seriously, wake up … he RESIGNED from Home Depot after a lengthy public battle over his failure there … what makes you think he wouldn’t RESIGN from Chrysler? Live in the REAL world, my friend.

06/11, 3:22 PM

posted by:

928dreamer

“Cerberus is not “second guessing” its decision to purchase the Michigan-based automaker and that business is actually ahead of schedule.”

Wow, they must have gone into this with pretty low expectations. If they were planning on it being worse, how much money were they expecting to lose this year?

06/11, 3:39 PM

posted by:

Xile

Hmmm. With phrases like guarded optimism, Nardelli sounds a lot like W and and the Iraq war. Give Cerberus 6 months and they will turn another corner.

06/11, 3:51 PM

posted by:

xyunya

Impulsive, I don’t know Nardelli and even hate shopping in Home Depot after his reign. However, I know nothing about his performance at Cerberus. I was under impression, that guys who made many billions of $$$ know what to do and how to spend their billions. Cerberus earned their money – did not inherited like Ford foundation. 30 years ago Cerberus did not exist. Those are shrewed guys, and if they hired Nardeli to perform a specific function they thought that he is perfect for that function. They could hired anyone they wanted. My guess is that he is streamlining bureaucracy and establishing relationships with other players in industry (Nissan after Chinese strings of failures). There is a plan and he is executing against this plan. As long as he is there – he is doing OK.

06/11, 4:32 PM

posted by:

JoshyLofty

I thought they were supposed to have the NEW Avenger & Sebring out by now. Or so thats what they claimed before whats his face got fired/quit…

06/11, 5:57 PM

posted by:

brassmonkey

They should team up with Oldsmobile and Mercury. Really, who (except the shareholders) would miss Chrysler? Anyone? Anyone? Bueller?

06/11, 7:18 PM

posted by:

inline6

Wow…many of you guys have no realistic understanding of how the auto industry works.

Chrysler has been owned by Cerberus for all of, what, a year?

Do you think Cerberus purchased the company thinking they’d have it in the black in 12, 24, or even 36 months?

These are INVESTORS. Probably smart enough to know an industrial giant like Chrysler isn’t going to turn around in the blink of an eye.

The energy crisis might be slowing the turnaroud, but not to the tune of Cerberus giving up after less than a year. They knew Chrysler was in trouble, and that it hadn’t hit bottom. And they knew it would take time to get what they want out of it.

So the doom and gloom is rather premature.

06/11, 7:29 PM

posted by:

bolex

well, i for one am glad that Nardelli made some type of statement. specially as a private he didnt have too. i’ll reserve any judgement on Cerberus and Nardelli until there new products come out. Challenger,Journey,new Ram were already in development before Cerberus. the only thing Cerberus has had there hands on is the interior of the new Ram. thats it. so how can ayone tell if they failed?

06/11, 7:31 PM

posted by:

bolex

100% with inline6.

06/11, 11:05 PM

posted by:

NoNameDenton1

Chrysler’s American sales are tanking, but its worldwide sales are actually doing pretty good. People need to lay of Chrysler, they are trying to fix their company, not gonna happen overnight, these kinds of restructuring need time and patience.

06/12, 7:04 AM

posted by:

fuzz40

Just wondering but all you people who are being negative about Chrysler’s “turn around”; have any of you even worked in the auto industry? Or are you just typing whatever you feel like with no real experience at all? I understand this is an internet forum where free speech rules. I just wanted to see who actually has worked in the industry and has a better understand of how things really work.

06/12, 8:37 AM

posted by:

VictorRaikkonen

I for one am just typing whatever I feel, and what I feel right now is that Chrysler has not built an interesting vehicle since the 300C and Crossfire rolled off the production line. Since then they have given the world the il-fated and unattractive Avenger, Sebriing and the pos Cobalt. I mean honestly, with a line up like that are you really surprised their sales are tanking.

Yea, you can say well look that the new Challenger. Well look at it, the whole retro thing was cool when Ford did it 5 years ago, big whop. I would like to ask them why they feel the need to use the same interior on 3 different cars… I mean honestly. But I digress, and will get back to studying for finals next week… law school is a bitch but its better than working in the auto industry.

Victor “robots do not strike” Raikkonen

06/12, 12:52 PM

posted by:

Impulsive

‘Victor’, Chrysler didn’t give the world “the pos Cobalt”. But two out of three ain’t bad.

06/12, 1:52 PM

posted by:

NoNameDenton1

VictorRaikkonen, some people will buy the Challenger for looks, some for the perfomance, Challenger s still a great looking car and has IRS compared to the Mustang.

06/12, 7:06 PM

posted by:

VictorRaikkonen

You know Impulsive, good on ya for that because I was a little impulsive in my post and did not realise I said Cobalt when I meant to say Calibre… all of these c-names.

06/12, 10:53 PM

posted by:

sharpie

Agreed with inline6, turning around Chrysler (and Ford and GM) is like steering a oil tanker. Every move has to be anticipated well in advance and it is a long and slow process.

06/12, 10:57 PM

posted by:

sharpie

VictorRaikkonen, law school? isn’t it a little late for Finals? The season for summer clerkship started 3 weeks ago, unless you attend a non-US law school or one of those “People’s law schools” in California.

 
 
You need to log in with your user name and password before you can leave comments.

    

Forgot your Password?

Don't have a user name yet? Simply fill in the form below and click the link provided in the
confirmation email. You must supply a valid email address to complete the registration process.

  
 
 
 
 
  • Login
  • About
  • Contact
Please note that you need to log in with your user name and password before you can leave comments.
  

login
cancel
Forgot your Password?
Don't have a user name yet? Click here to register now.

Simply fill in the form below and click the link provided in the confirmation email. You must supply a valid email address to complete the registration process.

  
submit
cancel
Leftlane is the leading source for automotive industry and vehicle news, new car research, future vehicle information, and reviews. Read by car shoppers, driving enthusiasts, autoworkers, executives, and investors, the website is updated throughout the day with the very latest auto news - as it happens.

Leftlane also provides consumers with accurate and media-rich information on every car currently on the market. In-market shoppers can review specs, read overviews, view high-resolution images, watch videos, and estimate pricing. No other automotive publication brings together the same degree of timeliness, thoroughness and accuracy as Leftlane.
 
submit
cancel