A Year to Forget at Chrysler
December 30th, 2007The automaker got snapped up for chump change by Cerberus Capital Management and redubbed Chrysler L.L.C. A private-equity company, Cerberus said it would revive Chrysler rather than strip it and flip it, but that promise struck some skeptical analysts and the United Automobile Workers as Gordon Gekko redux.
Cerberus raised more eyebrows when it hired Robert Nardelli , the ousted head of Home Depot and car industry newbie as chief executive, rather than a proven car guy, like Wolfgang Bernhard, who was once Chrysler s No. 2 executive and advised Cerberus in its negotiations with DaimlerChrysler. After Cerberus took over in August, it fell to Mr.
Nardelli to announce more bad news, including a projected $1.6 billion loss for 2007, additional cuts in production, the loss of 13,000 jobs, and the end of slumping models like the PT Cruiser. Mr. Nardelli also recently parted ways with Jason Vines, Chrysler s outspoken public relations chief, a sign perhaps that the famously publicity-shy Cerberus intended to run Chrysler on a need-to-know basis.
Most perplexing was how a company famed for bold, breakthrough styling think Dodge Viper could have lost its mojo so quickly. Chrysler s year will be remembered for a nearly unbroken string of misfires, including the Chrysler Sebring , Dodge Nitro, Jeep Compass and Chrysler Aspen. Many models fell short both outside and in.