Two of the three American auto manufacturers, Ford and Chrysler are relying on so-called outsiders to bring their companies to profitability. Chrysler is relying on Jim Press, Tom LaSorda and Bob Nardelli. Ford has pinned its hopes to Alan Mulally.
Why did they do that? Events have forced the Detroit Three to be smaller. They have to be because they have less of the marketshare in the U.S.
Thus the new heads for the two automakers. Nardelli and Mulally know they are playing the new game, and they are not reluctant to make alliances with foreign car makers when such an alliance can prove beneficial.
Moreover, Chrysler, which is owned by a private equity firm, Cerberus, can do its business without the fear of investors looking over its shoulders. Investors are more concerned with dividends and making a profit quickly rather than building a strong infrastructure while moving toward profitability. In short, Chrysler execs don’t have to fear being pounded by investors if a decision is slightly off track. It is easier for them to stay the course, so to speak.
Our take? Pundits say that the so-called outsiders are talking truth, not fiction. For example, Press has been quoted as saying, “Cash is fact and profit is fiction.” The pundits like that. Personally, we want to see more cars.