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Discussion in 'Off-topic' started by wsweeks2, Aug 6, 2007.
Nardelli takes over at Chrysler
Lee Iaccoca he ain't, and I don't see a generous tax payer funded bail out package this time around. I think we'll soon see only two domestic auto makers, and the other two's future are tenuous at best. The US Auto Industry is, once again, on the verge of collapse.
Nardelli is not a bad choice. He didn't get fired for doing a bad job; he got fired for not focusing on stock price. Stockholders aren't necessarily the brightest bunch of stars in the sky sometimes. They care about one thing and one thing only: stock price. When they don't get an increase in the next 5 minutes, they scream bloody murder about how they've been wronged. Nardelli didn't pay that much attention to stock price and that proved to be his downfall, but he did post some rather impressive numbers on the business side. He increased profits to $6 Billion, doubled the number of stores, and increased their profit margin to 10%. He cared more about the long term sustainability than the short term stock price, which is opposite of many stockholders. Most just want to buy something low and sell it high, and they don't really care what it is or what happens to it later.
Maybe Nardelli can fix that cluster-flock of a company. They need someone who can focus on long term survival instead of how to best re-arrange the numbers to make the company look good for a few years.
US auto companies need their entire management teams replaced with ones that have actually paid attention for the past 3 decades. Their arrogance has allowed the US' auto industry to be completely outclassed by just about everyone. Simply paying attention to the competition a few decades ago would have prevented almost all of this. It's just plain stupid.
Arrogance combined with the auto unions maybe?
But he did pay attention the to $10MM loan that was "forgiven" and all the money spent for his family to travel as well. While he was busy not forgetting this, the stockholders were taking note as well.
Don't put all the money in your own pocket and screw the investors if you want to hang around. JMHO.
Don't get me wrong, he's certainly not a saint, but he's not this horrible wretch that he's been made out to be by the media. He did a decent job expanding Home Depot's business and for that reason I think he'll do as good a job as anyone else might be able to do at Chrysler.