Bailout Watch 516: PTFOA Fires Chrysler CEO Nardelli

by Robert Farago

Published: April 30th, 2009

bailout watch 516 ptfoa fires chrysler ceo nardelli

The Presidential Task Force on Automobiles (PTFOA) has claimed its second Motown CEO scalp. Chrysler CEO Bob Nardelli announced his departure in paragraph eight of Chrysler’s official statement on the automaker’s Chapter 11 bankruptcy filing. “Now is an appropriate time to let others take the lead in the transformation of Chrysler with Fiat,” said Nardelli. “I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance.” (Star Wars fans need apply.) Our sources tell us what common sense suggests: PTFOA head Steve Rattner read Nardelli the riot act. Nardelli joins former GM CEO Rick Wagoner in that special place where pensions are bankruptcy-proof (insured by the company), and mythical share option fortunes are bemoaned from a place of complete financial security. While Wagoner was immediately replaced by his clone, former CFO Fritz Henderson, the PTFOA has not named Nardelli’s successor. The lack of speculation speaks volumes.

Robert Farago

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Psarhjinian on Apr 30, 2009
At the very least, Nardelli deserves credit for climbing the GE political ladder. He allegedly made Power Systems profitable and successful, when it previously had not been. That apparently didn’t translate into success at Home Depot, though. I'll give on the success at climbing the corporate ladder---that's not easy by any stretch---but not so much at making Power Systems profitable: it's dubious at best as to whether or not he deserves credit for those actions vis a vis his subordinates (a common criticism of Welch), or that the kind of improvements he made are sustainable. As for Home Depot: Nardelli did not have significant experience (read: none) in distribution or retail, and the methods that worked so well at an organization like GE (that had a lot of inter- and intracompany fat to cut) flat should not have been applied to Home Depot. They could have been applied to Chrysler, and certainly would have been useful in the DCX era, were Daimler's management not so arrogant as to disregard anything that they didn't come up with themselves. That he was tapped for the spot at Home Depot should have been a warning to others about the dangers of interlock.

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Cos999 on Apr 30, 2009

Let's set the record straight: Jack Welch saved FORD as we know it. Does anyone recall why Mullaly left Boeing in the first place? He did not get the President's job. Mcnerney did. Welch set-up a 3-way competition for his job among Immelt (head of Medical), Nardelli (Power Systems) and Mcnerney (Aircraft Engines). He also set each of the guys up with a head-hunter, knowing the two who did not get the job would leave. He basically told the three that the losers would have to leave and if they did not like it, don't compete for his job. Immelt "won". As a GE stockholder from the early 1990's Immelt is a disaster and needs to go. He is a follower, not a leader. The guy who should have got the job had a very successful run at 3M and left 3M for Boeing. So, FORD can thank Jack Welch for keeping them out of bankruptcy. If Welch does not choose Immelt, Mcnerney nevers makes it to Boeing, and Mullaly never leaves Boeing for FORD.

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CamaroKid on May 01, 2009
He also set each of the guys up with a head-hunter, knowing the two who did not get the job would leave. He basically told the three that the losers would have to leave and if they did not like it, don’t compete for his job. Immelt “won”. Yes, that's what actually happened. Like I said.. The winner got to stay... the losers HAD to leave... "Having to leave" is THE definition of getting fired... PS I agree Jack Welch is a major A-H... But that doesn't change what he did... He forced Bob to leave.. This is confirmed by what Bob said to Jack when he got the "bad" news "I want an autopsy"... He knew that at GE he was dead, and he knew that he had to leave. There are lots of quotes from Bob... He was very unhappy to leave GE, and he was a fish out of water at the Depot.

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Anonymous on May 01, 2009

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