Bailout Watch 379: Who Owns Chrysler and How Much Does CEO Nardelli Make?
Cerberus owns Chrysler. OK, perhaps “controls” is a better word. Cerberus bought Chrysler from Daimler by convincing a group of investors that the ailing American automaker was, one way or another, a money spinner. Well, it sure didn’t turn out that way. The U.S. taxpayer is now keeping ChryCo in business. Or not. On Monday, nine days before its next visit to the federal bailout buffet, Chrysler will close its Conner Ave. plant (MI) and “idle” Sterling Heights, MI; Brampton, ON; and Belvidere, IL. “The shutdowns will last for at least a week,” wxyz.com reports. “With the company evaluating whether or not to reopen them on a weekly basis.” Flip a coin? Meanwhile, we, the people footing the bill, don’t know whose investment we’re protecting with our tax dollars. Foreign nationals? Bailout banks? Former government officials? Current government officials? Other, more profitable automakers? I’ve made dozens of phone calls. Nothing. Not a word. So I’ve called Senator Corker’s office for help. Nothing. Not a word. [E-mail here.] Meanwhile, Cerberus may yet be forced into the open, thanks to a new exec pay limitation clause on the next round of bailout bucks (not retroactive for some reason). So, how much does CEO Bob Nardelli make?
Nobody knows. We know that he’s not paid a salary per se. When Corker asked Nardelli to take a $1 a year pay pledge, he readily agreed. And then let slip that he doesn’t get a salary. So what DOES he get?
We continue to hear from our sources that Nardelli put as much as $50m of his own money into Chrysler when Daimler off-loaded the hollow shell on the smartest guys in the room. Perhaps Nardelli’s compensation is tied to his stake in the company. Daimler now values their 19 percent stake in Chrysler at . . . zero. Perhaps Mr. Nardelli is in petard-hoisting hell.
I doubt it. The Washington Post provides no answers, but plenty of questions.
Chrysler’s spokesman Stuart Schorr said the company’s executives are willing to abide by the administration’s new pay limits in order to get government help.
“We will continue to work with the Treasury Department to determine what new steps, if any, will be required to continue to comply with executive compensation requirements of our Treasury Department loan agreement terms,” he said.
The bottom line:
Chrysler officials declined to comment yesterday on how much Nardelli is making beyond his salary.
[If any of TTAC’s Best and Brightest can help us uncover the investors behind Chrysler, please contact me ASAP ( firstname.lastname@example.org).]
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Scott "It may not be the ideal hauler to take the clan cross-country to Wally World considering range anxiety "Range Anxiety is a chosen term that conceals as much as it discloses. You don't care about range that much if you can recharge quickly and current BV's (battery vehicles) can't, no matter how good the chargers are. From what I've been reading it is likely that within 5 years there will be batteries in cars, most likely Tesla's, that can charge fast enough with no harm to the batteries to satisfy all of us with no need to increase range beyond a real world 300-ish miles.And that's when I buy one.
- Charles I had one and loved it . Seated 7 people . Easy to park , great van
- Jay Mason Your outdoor space will get better every year with a pergola. A horizontal, pole-supported framework for climbing plants is called a pergola. It creates a closed off area. pergola builder denton texas by Denton Custom Decks provide cover for outdoor gatherings. They would be more than happy to assist you with the pergola's framework.
- Alan I would think Ford would beef up the drive line considering the torque increase, horse power isn't a factor here. I looked at a Harrop supercharger for my vehicle. Harrop offered two stages of performance. The first was a paltry 100hp to the wheels (12 000AUD)and the second was 250hp to the wheels ($20 000 (engine didn't rev harder so torque was significantly increased)). The Stage One had no drive line changes, but the Stage Two had drive line modifications. My vehicle weighs roughly the same as a full size pickup and the 400'ish hp I have is sufficient, I had little use for another 100 let alone 250hp. I couldn't see much difference in the actual supercharger setup other than a ratio change for the drive of the supercharger, so that extra $8 000 went into the drive line.
"We are the face the public understands.Second, about hating salespeople. YOU…YOU…work on the floor for a few years…and then address the issue." On that note, this Edmunds article was really interesting! http://www.edmunds.com/advice/buying/articles/42962/article.html
We all know Chrysler is not worth saving. Those working there should have known for at least the last 18 months that their jobs are living on borrowed time. As for the dealers, sorry guys, I don't have much sympathy for you. Years, decades even, of shoddy customer service and slight of hand sales have made most of us skeptical of you. Sorry, you dug your own grave.