Investing

Fixing The Car Companies: Does Chrysler's Nardelli Get To Keep His Job? (TM)(GM)(F)(HMC)

oil11The current word in the news media is that Chrysler chief Robert Nardelli will keep his job, unlike his counterpart at GM (GM). That seems odd since, so far, the heads of Toyota (TM) and Honda (HMC), which are much more successful than Chrysler, have been replaced. The head of Peugeot is also gone.

Nardelli may have dodged a bullet for all of the wrong reasons. Like Ford’s (F) Alan Mulally, Nardelli was not in Detroit when the current downturn in the US car business began. Nardelli can say he has clean hands, although that is not true. He joined Chrysler in August 2007 and the No.3 US car company has performed much more poorly than its peers since then. Chrysler has been too slow in cutting workers and has done little to revamp its line of light vehicles to make sales to consumers who want more fuel-efficient cars.

Nardelli could still be out of work within a month. The Administration wants a marriage between Chrysler and Fiat. If the does not happen, Chrysler could still be forced into Chapter 11. Creditors, suppliers, and the UAW may want to have fresh blood in the corner office. Other car companies have set the precedent. The CEO is expendable if dumping him is the key to a better future.

Douglas A. McIntyre

In 20 Years, I Haven’t Seen A Cash Back Card This Good

Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. Our top pick today has pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous. 

 

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.