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In Nardelli, Chrysler Found Its Maverick

Cerberus relying on tough-talking new CEO to cut costs

By Wesley Oliver,  Newser Staff

Posted Aug 7, 2007 4:30 AM CDT
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(Newser) – Former Home Depot chief Bob Nardelli has a reputation for being a brusque, hard-edged maverick, and that’s exactly what his new bosses at Chrysler want, Reuters reports. Cerberus Capital Management hopes to stem losses at the automaker by cutting costs, particularly in the delicate area of unionized workers. Nardelli’s gruff style may improve numbers—or it may wind up confounding labor negotiations.

Cerberus hopes Nardelli’s ride at Chrysler will be smoother than his bumpy tenure at Home Depot, where he angered employees and shareholders. But the private equity firm's decision to keep former CEO Tom LaSorda as Chrysler’s president may represent a “good cop/bad cop” tactic with labor—in which Nardelli will be looking out for the bottom line.

Chrysler chairman and CEO Bob Nardelli, right, standing with vice chairman and president Tom LaSorda, is introduced to the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. (AP Photo/Carlos Osorio)
Chrysler chairman and CEO Bob Nardelli, right, standing with vice chairman and president Tom LaSorda, is introduced to the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007....   (Associated Press)
Chrysler chairman and CEO Bob Nardelli addresses the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with Nardelli, an auto-industry outsider taking the wheel. (AP Photo/Carlos Osorio)
Chrysler chairman and CEO Bob Nardelli addresses the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with Nardelli,...   (Associated Press)
Members of Project Bandaloop of Oakland, Calif., rappel down the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with Bob Nardelli, an auto-industry outsider taking the wheel and making Tom LaSorda the No. 2 person. (AP Photo/Carlos...
Members of Project Bandaloop of Oakland, Calif., rappel down the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with Bob...   (Associated Press)
Home Depot Chief Executive Bob Nardelli smiles during an Atlanta, Ga. interview in this Friday, Sept. 1, 2006 file photo. Newly private Chrysler LLP announced Sunday, Aug. 5,2007, that Nardelli would be its chairman and chief executive. (AP Photo/Gene Blythe)
Home Depot Chief Executive Bob Nardelli smiles during an Atlanta, Ga. interview in this Friday, Sept. 1, 2006 file photo. Newly private Chrysler LLP announced Sunday, Aug. 5,2007, that Nardelli would...   (Associated Press)
A member of Project Bandaloop of Oakland, Calif., rappel down the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with Bob Nardelli, an auto-industry outsider taking the wheel and making Tom LaSorda the No. 2 person. (AP...
A member of Project Bandaloop of Oakland, Calif., rappel down the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with Bob...   (Associated Press)
Chrysler chairman and CEO Bob Nardelli, addresses the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with an auto-industry outsider taking the wheel. Nardelli, who left Home Depot in January after a shareholder rebellion...
Chrysler chairman and CEO Bob Nardelli, addresses the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with...   (Associated Press)
Chrysler chairman and CEO Bob Nardelli, right, standing with vice chairman and president Tom LaSorda, addresses the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with an auto-industry outsider taking the wheel. Nardelli, who...
Chrysler chairman and CEO Bob Nardelli, right, standing with vice chairman and president Tom LaSorda, addresses the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler...   (Associated Press)
Chrysler chairman and CEO Bob Nardelli addresses the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with Nardelli, an auto-industry outsider taking the wheel. (AP Photo/Carlos Osorio)
Chrysler chairman and CEO Bob Nardelli addresses the media at the Chrysler headquarters in Auburn Hills, Mich., Monday, Aug. 6, 2007. Chrysler began its new life as a private company on Monday with Nardelli,...   (Associated Press)
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Nardelli faces tough negotiations with UAW
Wall Street Journal

Nardelli hiring leaves Chrysler veterans in the backseat
TheStreet

Labor union boss "surprised, concerned" over Nardelli hiring
Independent (UK)

US • Money

 
Chrysler • United Auto Workers • Cerberus Capital Management • Toyota • General Motors • unions • General Electric • Ford • Stephen Feinberg • Home Depot • Robert Nardelli • Tom LaSorda • auto industry

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