Monday, August 13, 2007

Chrysler, Cerberus, and Daimler, Oh My!

It's been a little over a week since Cerberus signed the papers getting Chrysler out of the clutches of the Germans (well, almost), and there's not much change.  But then...

The Pentastar is back!!  Finally, a symbol of the heritage of the company that just doesn't seem to die, no matter what happens.  At least it's not a three-headed dog, even a three-headed Hemi-dog would have been too much.

Tom LaSorda got bumped from his top banana position down to 2nd banana.  Not surprising since Chrysler hit the skids on his watch and Cerberus wanted someone else not connected with the previous regime to be in charge.

The Top Guy that Cerberus put in LaSorda's position is the former Home Depot CEO, Robert Nardelli.  He floats over to Chrysler/Cerberus under a $250 Million golden parachute left over from his Home Depot days.  How much money can a person be worth?  Of course, since Chrysler is now a private company, Nardelli's salary doesn't need to be disclosed to shareholders, but it has been stated that he will earn only $1 for his first year (a la Iacocca) with future compensation dependant on his performance.

But the Germans (a.k.a Daimler) still have a little under 20% of the company.  It will be interesting to see how they fit into the picture.

There is a lot of speculation at the company about how all of this will impact Union negotiations.  Not much feedback yet, but we all know that healthcare is at the top of the list right along with the job bank.  Will both sides play hardball?  Too soon to tell, but I predict a lot of yelling.

I wonder if we'll all have to wear little shop aprons with the company logo on them...they had damn well better not be orange...

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