Chrysler, backed into a wall, bites Back

According to Forbes, The two top execs of the company, CEO Robert Nardelli and Vice Chairman James Press, have ordered more than 200 engineering changes to fix a wide range of problems at a cost of at least $100 million. This is as a result of a visit the two made to Chrysler’s test track in where they reviewed every vehicle in Chrysler’s lineup.

More importantly, there were no meetings. No creation of special review boards or call for a special rendezvous of designers. It was a decision taken by the two top brass of the company. End of story.

This is an example of the new attitude at Chrysler since it was acquired by Cerberus Capital Management. Billion dollar decisions that once took months to make are now being done in minutes. These decisions and others can be made with a no nonsense attitude because Chrysler is now private. Execs don’t have to answer to shareholders.

The media has already announced that the newly empowered automaker was jettisoning slow-selling vehicles in its lineup including the Chrysler Pacifica, PT Cruiser convertible, Crossfire and Dodge Magnum. Well, look for not only more cuts in the future, but stricter control on the remaining vehicles. Senior engineers are facing more scrutiny where quality is concerned and Nardelli has hired a “Chief Customer Officer” who will monitor quality assurance and stand up for the buyer.

There is more of an emphasis on making Chrysler dealers happier, too.

Our take? Whether Cerberus plans to keep Chrysler private for a long, long time, or plans to bring it back to public ownership some time in the future is not the issue now. The goal is plain and simple: make Chrysler a better company and making its products more appealing to buyers. And it's doing it with a Clint Eastward, Charles Bronson, Robert Conrad no nonsense kind of attitude. We say, Good for them!!