5 May 2009

How to be a CEO

In case you haven’t been paying attention to the Chrysler saga, here’s a brief summary of some recent events.

March 17:

Chrysler Chief Executive Bob Nardelli today called for a second round of funding for the company’s financial arm that would enable sales to customers who otherwise can’t qualify for loans.

In an interview with CNBC, Nardelli also said he wants “some kind of decision” from the president’s task force on the auto industry by March 31 on Chrysler’s request for an additional $5 billion to fund operations.

April 21:

Top officials at Chrysler Financial turned away a government loan because executives didn’t want to abide by new federal limits on pay, according to new findings by a federal watchdog agency.

April 30:

Chrysler filed for bankruptcy protection Thursday and announced it will temporarily halt most of its vehicle production while it completes a deal with Italian carmaker Fiat designed to revive its tattered fortunes.

Obama said Chrysler Financial, the arm of the company that makes loans to buyers and to dealers to finance their inventories, will be merged into GMAC Financial Services, once General Motors Corp.’s finance arm. The new GMAC will get government support. Chrysler’s base of dealers would also be pared down.

So, how’s that bonus now Mr Nardelli?

May 5:

Whoever replaces Chrysler Chairman and Chief Executive Bob Nardelli will have to oversee a complex rebuilding of Chrysler with Fiat engineering and U.S. government money – and might not earn more than $500,000 a year doing so.

I guess that’s why CNBC named Nardelli one of the worst American CEOs of all time even before he took over at Chrysler.

© mathew 2017