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.
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72 comments Add your comment
Cmann
May 29th, 2009
1:45 pm
You all blame the unions, but what product have the big 3 put out that you really really want to buy. In the 1980s, GM had the Trans Am, Grand Am, and nice Buicks. Ford had the Probe in the 90s. Today, they sell boring cars here. The European Ford Focus is beautiful, but we do not get that here.. The Chinese Buick Park Avenue rivals Mercedes, but not available in the US… blame management and marketing…. I am a business major and management clearly failed at all three companies….
David
May 29th, 2009
1:59 pm
I am the last one to defend the dirty unions. However, they didn’t run these companies in the ground.
You learn in business 101 it is poor management decisions. That is like blaming the janitor at the company because it is a mess. Management made the decision to let him get away with it.
Poor management decisions and superior competition ran the auto industry in the dirt.
Americans just don’t want to admit it. If I let my kid run wild, is it my fault or my kids?
Tired of It
May 29th, 2009
2:00 pm
Jimbo…i just gave a couple of examples….your examples were on the low end of the spectrum. Going by what you stated, check the resale on a Toyota Tercel, Nissan Sentra. they both really stink….doesnt mean they were terrible cars. Check Mercedes and Volvo…also terrible, but not bad cars. The Big 3 made a big turnaround in quality since the 80-90s….believe me, I worked for Toyota for 12yrs and was easy to sell against them back then…they were garbage…today its not the case….show me 1 import with 400+ hp that gets 23mpg on the highway…..this is really an amazing stat…..Chrysler has several and GM has the Vette which actually does get 20+mpg and is a sports car. People complain about gas burning AMerican Cars…well hell…we have all models available here and what do people wanna buy? I had a Hummer…loved it…10mpg downhill….never had a minutes problem with it…great vehicle. I dont want some nutbag president dictating to me the MPG my car should get when his dumb a– is campaigning on the AMerican taxpayers dime in a 747 that costs 300k a day to operate….hypocrisy at its finest from this idiot…were all in deep trouble!!!
Tired of It
May 29th, 2009
2:04 pm
cmann….take a look at the new Dodge Challenger and tell me thats not pretty cool. Look at the new Camaro(i dont like it) …but pretty cool. What about the Chrysler 300 and Magnum….not too bad and 425hp available….check out the Ford GT….really cool but 150k…the Viper is nasty…just saw a new Impalla SS at Indy…open your eyes and look around
Jimbo Slice
May 29th, 2009
2:09 pm
Tired of it
The big 3 has indeed made a turnaround in quality, but Chrysler is still lacking behind GM and Ford in quality big time. Everyone knows that, why are you in denial? Is that you behind the keyboard Nardelli?
ncgreybr
May 29th, 2009
2:22 pm
I have to agree with “Average Joe”, there’s enough blame to go around for everyone to get some. Management was too concerned about their paychecks (I need 10 more million!)to manage. Designers were 10 years behind the times. The unions were all out for themselves and “to hell” with the company. (Union management did a GREAT job of getting everything they could for their guys…and that was their job!) God only knows what the boards of directors were doing, certainly NOT directing. The stockmarket investor was only interested in a dividend. NO ONE was interested in the longevity of the COMPANY!
ncgreybr
May 29th, 2009
2:40 pm
If it wasn’t for “nutbag” Presidents insisting on better MPG (to save our environment, atmosphere, use of impoted oil…WHATEVER) we would still be trying to produce 10 MPG “downhill” vehicles here while the rest of the world is producing 35 MPG vehicles.
George
May 29th, 2009
2:47 pm
“If the union workers got higher pay, they’d make better cars.” You kidding right? Fire the people that think that way and get people that want/need a job. I promise you the Asians don’t think that way!
we lose
May 29th, 2009
2:51 pm
I buy American cars. I want to continue to buy American cars. Last year I went to the car show in search of a good midsize car. I’m sorry, but all the American cars I sat in just seemed like junk compared to similar priced japanese versions. I didn’t want it to be like that. Tried hard to convince myself otherwise, but it was impossible.
American companies have a $7K+ burden of union mandated benefits on each car. It essentially means that the Americans must sell you a $17K car for $24K. The competition gets to sell a car without that burden (ie. a car that should go for 17K is selling for $24K against a car that actually was built as a $24K car). The American car companies will NEVER be able to compete with that albatross around their neck.
Void the UAW contract. Let the ones that want to come back to work under more realistic terms come back. The ones that don’t can go work elsewhere. Sorry, but floor sweepers don’t deserve $32 an hour and healthcare for life. Car companies (or any other company for that matter) just can’t afford it.
Quite honestly, I’m not sure we can justify 3 major car companies in the US anymore. While painful, they may not be viable under any circumstances. They are definitely not viable with the current union agreements.
Tired of It
May 29th, 2009
3:28 pm
ncgreybr…..i assume you are a liberal nutbag treehugger also….1 question….how many 35mpg vehicles do Mercedes, Volvo, Saab, BMW, Aston Martin, Ferrari, Porshe, Lamborghini, Maserati, Land Rover, Range Rover etc… produce???
Quick answer none….there are too few tree huggers out there to drive demand….economics 101….law of supply and demand…if there were a demand for these, private companies would build them and profit from them….in a socialist economy like our “nutbag president” is creating, we will all be forced to drive Tatas, Yugos and other socialist wonders like that. There is no market for unsafe overpriced high mileage vehicles, except in the tre huggin markets….hey yall can have um…bless you…..just dont pull out in front of my gas sucking SUV and youll be OK!!!!!
mike
May 29th, 2009
3:29 pm
It is very simple…..GM and Chrysler failed because the public did not support their products at the prices they tried to sell them…..just because the government now owns them does not mean these same people will now buy these products….this will go down as a $100 billion dollar diaster and the people repsonsible; Obama, the democrats and the unions will not take any responsibility….remember they are spending taxpayers money….they have no skin in the game……the real investors were screwed…..all Americans should send a message to this government and not purchase any GM or Chrysler products at any price….that is the only thing left for the taxpayers….their voices are not being heard as the pigs at the trough of the government “teat” are drowning out all common sense…….do you think Obama, all the democrats and all the union members would put their own money up as collateral? not a chance in this world……
Tired of It
May 29th, 2009
3:33 pm
Mike……AMEN!!!!!
Buzz
May 29th, 2009
4:00 pm
“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.”
Give the unions MORE money? Did you honestly say that? The contracts with the UAW were killing them.
Buzz
May 29th, 2009
4:06 pm
j rev said “You people do realize that the UAW has made considerable concessions in order to keep this company afloat. The investors on the other hand……………”
Gee, make concessions or lose everything…tough choice. The investors shouldn’t have to make concessions as they were the ones footing the bills.
ncgreybr
May 29th, 2009
4:34 pm
Tired of this: “economics 101….law of supply and demand…if there were a demand for these, private companies would build them and profit from them…”
I’m sure Toyota, Nisson and VW are just flukes…and yes, my Nisson Altima safely gets 34 mpg on the highway.
BTW, the name calling and slurs (because you don’t have an arguement)routine doesn’t work with me.
blondval
May 29th, 2009
4:44 pm
“ncgreybr…..i assume you are a liberal nutbag treehugger also….1 question….how many 35mpg vehicles do Mercedes, Volvo, Saab, BMW, Aston Martin, Ferrari, Porshe, Lamborghini, Maserati, Land Rover, Range Rover etc… produce???
Quick answer none….there are too few tree huggers out there to drive demand…”
I think Toyota produces more Cambrys than all the ones you listed together. Yes, there is a market for high mileage vehicles. You’re just too ignorant to see it. Intelligent patriotic people drive high mileage vehicles.
Buzz
May 29th, 2009
4:57 pm
My Silverado has 250,000 miles on the clock. My Trailblazer has 172,000. Both have held up just fine. GMs quality isn’t as bad as many make them out to be. Granted I do also have a Camry and it already has 52,000 miles. The quality of both companies has been pretty good.
I am eyeing the new Camaro as it looks quite nice to me. Though I wouldn’t have a problem if I ended up with a Challenger.
ncgreybr
May 29th, 2009
5:08 pm
Buzz: I agree about the quality. I have a 98 Ford PU with a little over 200,000 miles on it and the only problem has been a little clutch problem. Not even enough to take in and have fixed. Before that I had a Chev truck. Got 200,000 on that one too. Before that, a FOrd PU that finally died of old age. The only reason I’ve got the Nisson Altima (besides the rear end looking so hot!) is that my head rubbed the liner on the Monte Carlo. I would have bought the Monte Carlo in a heartbeat!
Why doesn’t Detroit go back to the classics and rebuild a few of them using modern technology? I would love to have an old style/but updated Malibu or Cutlass muscle car. How about a 59 Caddy that gets 35 MPG!
Daniel
May 29th, 2009
5:41 pm
O.K. the unions didn’t do it. The management did. GM, Ford, & Chrysler management should have grown some and thrown the unions out years ago. No one deserves that kind of pay and lifetime healthcare for screwing doorknobs on or sweeping floors. No business model will support that. When will the American automakers get a clue and kick the unions out and re-hire a workforce at a reasonable wage commensurate with skills required for the job. Maybe then they would have a chance at being profitable. The democrats and the unions will be the downfall of this country.
Joel Green
June 1st, 2009
7:32 am
Last time I looked Toyota lost bilions,Nissan was French owned and Honda was scrambling to sell vehicles it could not move off it lots. The union costs that put US manufactors over the top are our health care costs in this country. US manufactors were just to loyal to dealers and its workers, indeed how unamerican.
JMM
June 1st, 2009
12:47 pm
DITTO what CJKatl said. That is the entire situation exactly in a nutshell. Corporate greed at any cost. Including employees, neighborhood little league teams and the country.
Diana
June 2nd, 2009
12:18 pm
Nardelli should be the one getting cut…he screwed Home Depot up and he has done nothing for Chrysler…