The New Chrysler II: Lots of Noise, Questions, and Endless Speculation
The furor surrounding Cerberus' decision to make Bob Nardelli, formerly of Home Depot and GE, the CEO and chairman of the New Chrysler II, putting Tom LaSorda in the Number 2 position instead of Number 1, is the juiciest gossip train to hit the circuit since Mulally's appointment at Ford. There has been much more noise than news this week, and here's our contribution to the fray.

Employees at Announcement Wanted to be in Air Conditioning or Home by the Pool
Watching both the press conference announcing Bob Nardelli's appointment as CEO and chairman of the newly formed Chrysler LLC as well as the employee pep rally afterward, and both groups seem wary instead of enthusiastic or supportive. The backlash in the press finds little support for Nardelli. The employees, while impressed with acrobatics and fireworks, generally looked as though they'd have preferred to be in their offices that hot, muggy afternoon. Most left as soon as they sensed the formal program was over. Nardelli says he's here to bring laser-focus and energy to the turnaround plan already laid out and in progress. His presence in front of employees didn’t bring energy, and returning to finish the last few days of a family vacation the next day didn't display laser focus.
Nardelli's been characterized as a drill sergeant with little people skills, and he's entering a vibrant company full of strong personalities. Being private gives Chrysler LLC the ability to make decisions based on long-term health instead of short-term profit-and-loss statements. But Cerberus expects a quick turnaround and their investors do expect a return. Nardelli may be playing to a different audience, but the pressure will be no less intense.

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