It's official: Chrysler's fucked now

[jmowreader]

They installed Bob Nardelli as CEO. What got into them?

http://money.cnn.com/2007/08/05/news/companies/chryslernardelli.fortune/index.htm?section=money_topstories

[Nite Owl]

1. I saw the press conference

on Bloomberg yesterday. He ran down Home Depot now they give him Chrysler to do in? What is with these people, the worse they do the more they get.

[Ikonoklast]

2. Well, if you're going to loot the company of saleable assets

And then sell the husk to the Chinese, Nardelli couldn't make things any worse.

Cerberus is going to run the company and make cars? Who do they think they are kidding?

[Captain Angry]

4. Chrysler will be rebranding Chery vehicles from China in 2008.

They're going to ship the low-end vehicles over on a boat, stamp Chrysler on them, and send them out the door.

Anybody can run a company that does that. Well, anybody who wants a multi-million dollar parachute.

[Kosmo]

3. I think they were just sold to a ...

private equity firm. No matter what way you look at it it is slice and dice economics from here on out. The employees are fucked and five guys are going to walk away with whatever they can. Dump the assets liquidate the debt, turn a profit on their investment and declare bankruptcy. Everything gets hung around the neck of the L.L.C. Mr. fund manager gets to buy a house on the cape.

Chrysler made a great product for many years, and it's about to become a relic of the 20th century. God bless the working men and women of Chrysler, it is a shallow job pool for us blue collar folks these days.

[TreasonousBastard]

5. Maybe, but Cerberus isn't...

your typical vulture firm-- they've been pretty successful at turnarounds and haven't been first to dump assets. They even made nice with some unions they've had to work with and avoided several Chrysler plant closings.

And they manage a consistant 20% return for their investors, even with Dan Quayle on the letterhead.

So, why the fuck they picked this guy is anybody's guess, but it's not like they didn't have a good reason. Could be the same reason they have Quayle and Snow in corner offices but no real authority.