Cerberus announced today that former GE and Home Depot executive Bob Nardelli is taking over as CEO of Chrysler. And today the executive known for his arrogance and lack of effective leadership communications skills made his first misstep as CEO.
There’s a two-page Chrysler advertising spread in today’s Wall St. Journal proclaiming “The New Chrysler: GET READY FOR THE NEXT HUNDRED YEARS.” Gee, Bob, most new CEOs have a 100-day plan, but a 100-year plan? You’ve already been able to consult and collaborate with Chrylser employees, union officials, and partners and figure out the next 100 years? Puh-leeze. This is a stupid way to start and doesn’t help you overcome the credibility and arrogance problems that clouded your departure from Home Depot. Pull the ads before you have mud on your face.
What’s almost as dumb is what the ad says.
“A NEW ERA BEGINS WITH THE NEW CHRYSLER. Now, that sounds like the kind of news that would only pique the interest of the people on Wall Street, but we believe it’s going to be more important to the folks on Main Street. In short, it means that the New Chrysler is something of a rarity in today’s automotive world: a company that’s capable of quickly responding to the needs of customers. The fact is, we’ve always strived to be the most customer-focused car company on the planet.”
Maybe Bob, with his $200 million Home Depot severance package, has never bought a Toyota and Honda and experienced great customer service.
But I digress. The point is that when a CEO has credibility issues his communications advisers should help him or her not step back into them. Before there can be a new Chrysler there needs to be a new Nardelli who can earn the respect and trust of his new team.
Nardelli probably never saw the ad, nor does he care about the feelings of employees and other constituents (except Wall Street). He was brought in by the money people to stop the bleeding. (Chrysler lost $680m last year and has predicted it would continue to lose money until sometime next year.)
The next hundred days for Chrysler will be all about slashing jobs and closing plants. And what better guy to lead the effort than a student of Neutron Jack Welch.
Unfortunately for Bob (and the money people), cost cutting will not work in the long term. Brand building – which is all about emotion and feelings – is what sell cars.
It’s pretty disheartening that the guy who single-handedly ushered in the deterioration of customer service at Home Depot is now running Chrysler, a company that despite a few hit offerings like the 300, has notoriously poor quality throughout its product line–just look at Consumer Reports. The bright spot? Customer service on the floor at Home Depot, while still not good, is now measurably better post-Nardelli.
Keep up to date on news from Chrysler.
Nardelli really helped Home Depot by letting go many of the full time employees who were knowledgeable and haring part time employees which Home Depot did not have to pay benefits to who were NOT knowledgeable. Wonder how many Home Depot employees are part of the 47 million without health insurance? Interestingly enough however he helped himself to a tremendous salary and an even fatter golden parachute! Gee thanks Bob for screwing the American people, now he thinks he will do it again at Chrysler, notice his salary states he is working for $1.00 and an UNDISCLOSED additional amount. I have never seen anyone worth over $200 million at exit or over $45 million a year! It is called RAPE of a company, its workers and the American people! He should be jailed not given another job where he can destroy America further. Why does Cerberus Capital Management of New York, a private equity firm not put capital into Chrysler?? My thoughts, get rid of Nardelli hire someone who has ethics and intelligence and the American people get to own a stake in the company and run everything until it is profitable, then prior to any big salaries are paid as they can exist like everyone else on less than $100K a year until the American people are PAID BACK WITH INTEREST!!!