Nardelli to Iacocca: Sorry, Chrysler is cutting your pension

This is too good to be true for a business blogger.

Former Chrysler chief Lee Iacocca stands to lose much of his pension and his company car due to the automaker’s bankruptcy, Reuters is reporting.

Perhaps, current Chrysler CEO Bob Nardelli, who enjoyed a $200 million-plus severance package when he left Home Depot’s top job, could give him a ride.

72 comments Add your comment

J.D.

May 29th, 2009
11:00 am

Man, I bet Chrysler wishes Iacocca had been at the helm the last few years. He pulled them from the brink of disaster back in the 80’s and stood the best chance for a repeat performance.

Turd Fergusen

May 29th, 2009
11:03 am

Thats too bad. Iacocca saved this sorry lot, from themselves, back in the 80’s with the luxurious “K Car” and now they want to treat him in this manner? Well they all must contribute something to the Kitty.

The Big 3 have had this coming for years and its long over due. I for one have would like to wish them ONE AND ALL a Happy *POOT* in the face.

OZZFEST

May 29th, 2009
11:06 am

Lee aint gonna being hurtin’….he will just call W and have a helicoptor sent to taxi him around. As for Bob, he can do the same…when you host the President at your $10M Vinings mansion it is safe to say you do not have to fear for anything the rest of your life.

TPD

May 29th, 2009
11:16 am

Nardelli ran Home Depot into the ground but walked away with $200 million. For what?? Sweetheart deals like this are why people think there should be limits on what a CEO can make. I disagree with this concept, but guys like Nardelli make it seem appealing! When you take a highly profitable company and run it into the ground like Nardelli did, you’ve got a lot of nerve walking away with that much money. High levels executives like that should be awarded for how much they improve the company!

Last Word

May 29th, 2009
11:20 am

Nardelli’s a tool.

CJKatl

May 29th, 2009
11:23 am

One cannot help but think that unlike the corporate executives of today, Mr. Iacocca probably understands why he is losing the car and looks at it as a minor inconvenience for the better good of the company.

In Mr. Iacocca’s day, corporate executives were company leaders who understood their role in guiding the company for the good of its consituencies: shareholders, employees and customers.

Nowadays, corporations mostly have greedy short-timers at the helm. Nowadays, corporate executives mostly look for how much money they can strip from the company and put in their own pockets. Rainy day funds have been treated as piggybanks. Now that the rainy day is here, the executives are rich, but the companies are looking for government bailouts.

Mr. Iacocca was someone who understood cars and car companies. We need more leaders like him – people who understand their industry -and fewer greedy bean counters who think that failed stints at electric goods manufacturer and running a previously successful home improvement center into the ground qualifies one to run a car manufacturer.

After having been passed over for the top job at GE, putting HD into intensive care and killing Chrysler, you-know-who probably still be able to get a job running a company. Look how many times that woman from Delta/Mirant has failed, yet still gotten hired in top posts. Corporate boards hire people with failed track records who do not know their specific industries to run companies and then are surprised when the companies fail.

Thank you for the space to rant.

UAWRules

May 29th, 2009
11:25 am

If management would give the union workers more money and benefits, they would make better cars–very simple. Now, there’s little incentive to make high quality cars because the workers know that management is out for themselves, and not the workers and the union.

I Wish

May 29th, 2009
11:27 am

I wish GM would take my car back and include it in “THEIR” bankruptcy. That would make me very happy….

JayD

May 29th, 2009
11:37 am

“Little incentive”? – How about keeping your job – Thats my incentive for doing my job well.

cliff zeider

May 29th, 2009
11:39 am

Hey, Don’t worry about Lee Iacocca, I hear he drives a good car, Audi.

EMMA

May 29th, 2009
11:47 am

WTF!!!! Iacocca was the best thing that happened to Chrysler and after reading the autobiography he pulled that company from beyond the brink. They have alot of nerve. Lee they are doing you WRONG!!!!

C.M. Thornton, III

May 29th, 2009
11:48 am

UAWBlowes. The unions have run the American car companies into the ground. An example is the Jobs Bank. Union workers getting paid top dollar to do absolutely NOTHING. And this is just one example of how the existance of the unions have had a detrimental affect on American car companies.

http://wsjclassroom.com/archive/06may/auto2_jobsbank.htm

Unions make the worker LAZY and do NOT provide an incentitive to make high quality cars.

Chief

May 29th, 2009
11:54 am

Thanks for nothing, UNION!

The Truth

May 29th, 2009
11:56 am

Don’t blame the CEO’s. Their compensation is just part of the competitive environment. To limit what they make would be the same as socialism. The government SUCKS at doing everything. Why trust them to run one of the world’s biggest businesses. That is asking for disaster!

UAWSux

May 29th, 2009
11:57 am

Union autoworkers were already making good money and benefits and the quality and fuel-efficiency of American automobiles still lags behind foreign cars. Throwing more money and benefits at them won’t solve the problem. Union workers need a reality check. Spend some time working in the real world and you’ll learn how good you’ve got it.

Susan

May 29th, 2009
12:00 pm

“If management would give the union workers more money and benefits, they would make better cars” Are you kidding me? You want more?? The union’s lazy workers already get paid way too much for doing way too little! The unions have manipulated Chrysler and GM for decades and they can’t turn things around because of the unreasonable things they’ve already agreed to so auto workers will work (which they still don’t). Good riddance to bad rubbish, I say! I love my VW!

blondval

May 29th, 2009
12:00 pm

Nardelli ran Home Depot into the ground and walked away with millions. He’s running Chrysler into the ground and he will walk away with millions again.
AND GUESS WHAT: SOME OTHER FOOL COMPANY WILL HIRE HIM TO RUN THEM INTO THE GROUND!

Bryant

May 29th, 2009
12:01 pm

The unions are what ran the automakers in the ground. There is no place for unions in modern times. Only the ignorant support unions in this day and age.

Jeff

May 29th, 2009
12:05 pm

That’s pretty sad considering what he did for this company. question?? what are the idiots that drove the company down the drain geting??? hmmmm….golden parachutes???

Jimbo Slice

May 29th, 2009
12:06 pm

Did the government and the unions force Chrysler to make crappy, gas guzzling, unreliable cars that have horrible re-sale value? No! Chrysler had this coming for a long time. Let them go under.

G

May 29th, 2009
12:08 pm

UAWRules you have got to be kidding??? Do you actually believe the way to correct the problem is to, Pay the workers more, they will then build better cars? The UAW sure did wonders for Detriot.

j rev

May 29th, 2009
12:09 pm

You people do realize that the UAW has made considerable concessions in order to keep this company afloat. The investors on the other hand……………

j rev

May 29th, 2009
12:12 pm

And I am completely anti union. The unions were horribly inefficient , and expenses were way over their value,but you have to blame the right people for the current fiasco.

Tired of It

May 29th, 2009
12:16 pm

C.M. is correct. The UAW is to blame and until our Illustrious Idiot In Chief fixes the problem the auto industry will go down just like Eastern Airlines did….all because of worthless unions. This will never be fixed due to the Union support of the Democratic party. They will not get rid of their voting block there…hopefully we will see them just go away. They are idiots, and all their jobs will be sent to China and they will be gone due to lack of jobs….serves them right…in the meantime we as a country will suffer!!!

TC6483

May 29th, 2009
12:16 pm

wow, union rules, I cannot believe you seriously mean this. I am also a UAW member, and most of us always said we would rather give something up to keep a job, than more money, and no job. We as union workers have always been proud in our work, have always build what management wanted us to build. Unfortunately we had nothing to do with the designs. I am proud to be a UAW member, proud of my fellow members. Most of us work hard. I am not saying every one does. There are always 5% bad apples in the bunch, that make the other 95% also look bad.

Tired of It

May 29th, 2009
12:27 pm

Jimbo…that was lame dude. You should really check your facts before you post…..you come off sounding like an idiot.Ive got a Magnum with 450hp that gets 23mpg on the highway…not too bad dude….My Viper resale hasnt been killed either so what are you referring to????Check the resale on a 5-7yr old Mercedes and tell me what resale sux

Reality Check

May 29th, 2009
12:28 pm

Since when did the UAW have the power to deccide what type of cars a company will make? The big three spent YEARS designing and selling cars that did not show wel vs. the competition. They were pushing Hummers and Excursions while Honda and Toyota were making selling tons of Camrys and Accords. To blame the rank and file Union members is just plain silly. Leadership comes from the top and in he case of the Big Three, Top Management drove them to this point!!

blondval

May 29th, 2009
12:35 pm

To “The Truth”…Limiting the compensation of CEO’s is “socialism”? NO! It’s called capitalism! You get paid what you’re worth! And most of these idiots driving these companies under with their short term thinking should be ousted, not given millions! What the hell did Nardelli know about running a car company? NOTHING! and yet the board of directors hired him! THEY should be the first to be replaced!

If The Union Workers could make better jobs Then.....

May 29th, 2009
12:36 pm

they are jipping every buyer of American cares. A man with any pride
ALWAYS gives 100%.
A union worker ALWAYS looks to screw over everyone while they beg for more.

If The Union Workers could make better CARS Then.....

May 29th, 2009
12:37 pm

Sorry for the misprint, was so angry at the thief union worker for saying they could make better cars.
What a con artist those guys are.

blondval

May 29th, 2009
12:37 pm

Where are the Lee Iacocca’s of this world when we need them?

SG

May 29th, 2009
12:40 pm

j rev

You are right on target. The UAW has made concessions to help keep the company afloat. To bad they were over 20 years too late. But if you like the idea of secured debtors not being paid fairly and the UAW receiving more (way more) than it should, then you must really love the UAW. Fact is these people in the UAW need the UAW. They have no other skills or abilities to become productive in the real world. The UAW is the private sectors version of welfare. Time for it to go, too many leeches. Investors are bad people. They provide the capital so these leeches can work. UAW is out of touch with the free market and i personally am glad to see it finally starting to fail.

Tired

May 29th, 2009
12:42 pm

File BR and close the company down, Let go all the workers, Push the Union to the curb, Open back up and hire the employees at normal wages with normal benefits, Throw regulation out the door and start building cars that people can afford with good gas milage.

Thats how you fix the Big three car dealers.

kcohen

May 29th, 2009
12:45 pm

If the Big Three manufactured cars that everday folk wanted to buy, it wouldn’t have mattered very much if the line employees are UAW or not. Look at the design cycle time – the last time a saw a WSJ article on it, Honda and Toyota run theirs at two to three years, while Detroit was consistently three to five years minimum. That’s a huge difference, and the Unions have virtually nothing to do with it.

SG

May 29th, 2009
12:45 pm

Tired i agree

Tired of It

May 29th, 2009
12:45 pm

Reality Check…your an idiot also…the big 3 spent their time pushing SUVs because thats what was selling….economics 101 you dolt!…The SUVs would have been quite a bit cheaper if they were not paying UAW labor 45 bucks an hour to turn a screw 5 times to the right every 90 seconds….take a look at the most productive auto assembly plant in the US…Toyota plant in Georgetown, Ky…no union labor period…wouldnt even hire anyone with previous auto experience.

Earl the Plumber

May 29th, 2009
12:48 pm

It seems Ford has improved and adapted a bit (veering away from the Expedition-type cars). Chrysler and GM on the other hand have been churning out some sho-nuff crap over the last few years. My sister’s 2006 Pacific virtually explored in a little over a year of ownership. The company had to replace her entire engine at the cost of nearly $5000! Also, the vaunted PT Cruiser is considered by many to be the worst of them all with its tiny, under-powered engine and heavy frame. I’m sticking with Honda.

Earl the Plumber

May 29th, 2009
12:49 pm

. . .exploded not “explored”–oops

zoehannah

May 29th, 2009
12:49 pm

The unions are what has brought these companies to bankruptcy. They get paid very good money but are the laziest workers in the world. Giving them more money will not improve the quality of american cars. American cars are not worth the money you pay for. And, the quality of the car should not determine on how much money a union worker makes. Believe me, they are WAY OVER PAID.

They've Had It Coming

May 29th, 2009
12:50 pm

I’m not pro union but these bankruptcies are clearly the fault of management (who caved in to the union’s every demand). Nothing wrong with American workers – they build great Hondas, Mercedes, BMWs and Toyotas. Who designed this Chrysler and GM schlock?

blondval

May 29th, 2009
12:51 pm

Does anyone know what the Toyota plant in Georgetown pays their workers?

Tired of It

May 29th, 2009
12:54 pm

blondval…its i tiered system …starts at about 15 hr and goes up

Tired of It

May 29th, 2009
12:56 pm

they also have great benefits along with daycare for kids….things they can afford not having to overpay for labor

blondval

May 29th, 2009
1:12 pm

Don’t we think that 15.00 an hour is a little excessive for people with no experience? I was thinking maybe minimum wage. AND day care. We don’t have daycare at my place of employment!

kremlin

May 29th, 2009
1:12 pm

To understand why GM and Chrysler failed and the mentality of Bob Nardelli just look at what MBA programs teach. Think short-term and max profits regardless of customer service, bad resource management(capital, human, etc) and strategic planning for where the company should be in 10 years.

I worked for a bankrupt company in the 90-’s and all the corporate executives after the crap hit the fan, got executive jobs with other fortune 500 companies such as controller, vp, president after posting million dollar deficits for quarters, eventually filing chapter 11 and accusations of fraud when the bankruptcy hearing started.

As for the unions, now is the time to pay the piper. You overpriced yourselves with your union mentality, which lead to loss of market share. You build crappy cars because you thought you worked for UAW and not GM, Chrysler and did poor QOS. Now go ask UAW for a job, you forgot about the customers who are your real boss.

Without the customer, you have no job.

Michael

May 29th, 2009
1:31 pm

When Chrsyler hired Bob Nardelli they signed their own death warrant. RIP Chrsyler.

Jimbo Slice

May 29th, 2009
1:37 pm

Tired of it

Real apples to apples there dude. You pick the Viper out of all of Chrysler’s cars to talk about their resale value. What about the rest of their crap? Like the Stratus, Sebring, or PT Cruiser, try trading one of those in. I’m not saying all of their cars suck, just most of them.

ncgreybr

May 29th, 2009
1:40 pm

WHY did Chrysler hire Nardelli? In what way was he more qualified than the other people on the short list? Was it because he only sent ONE company to the brink of Chapter 11 as opposed to the others that sent 2 or 3 to the edge? I OWN a company. There is NO WAY I would hire someone who managed a failed company! NO WAY! But yet these major corporations do it over and over again. Draw from the same pool of losers.

Average Joe

May 29th, 2009
1:40 pm

Both sides are seriously to blame. The automakers need to build a better product and unions need to stop leveraging for better pay and benefits. Look around. A lot of people don’t get pensions these days or make the kind of money these workers make for doing far more strenuous and dangerous jobs. They certainly don’t get paid for not working. For the rest of us average Joe’s the only thing remotely close to a pension is called a 401K and we all know how wonderfully they look these days. Let them fail. Do we really need umteen varieties of the same vehicle? See GMC v. Chevy, Pontiac, Buick, Ford, Mercury, Cadillac and the list goes on and on. . Unions were great when they represented the working man for unsafe working conditions (see Coal Miners). They were not created to fatten thy wallet. See UAW. Also I may be mistaken but I don’t believe the foreign manufacturers creating jobs here in this country allow unions…

Justin Kase

May 29th, 2009
1:45 pm

What is justice? Seeing Bob Nardelli’s face on the side of a milk carton.