Government Bail Outs Finally Cause Management Changes
GM ex-CEO Wagoner is gone as part of the fall out from a government bail out. and Chrysler looks like it will enter a strategic alliance with FIAT. Obama even commented that management had to change, but in the endless succession of bail outs this is a major change, the CEO is gone. There was no room anymore for business as usual. Regardless of Congressman Dingle's influence. I am hoping that this marks the development of cojones for Geitner and TARP recipients will have to change their styles or be gone too. Considering that GM had to lose its CEO, Chrysler does not have to do that much. It is still a shock that this happened.
Imagine if you worked for Chrysler. 1) Bought by Benz. 2) Let go by Benz. 3) Bought by Cerebrus. 4) Working with Fiat?. From Benz to Fiat. wow! Let's face it. Chrysler had the Hemi and was relying on a hope that niche market big engine motorheads would lead the company back to profitability. Big cars and big engines have a higher profit margin per car sold than small cars. see Ford and GM marketing SUVs with the enthusiasm of revivalist preachers. Trouble is gas went ot $4 per gallon and people could not afford the gas for their hemis. Say it slowly so motorheads can enjoy their short-lived stiffies. hemi. When you have company that can only afford one strategy and it is out of step with the times and costs of $4/hour gas, you've got a problem.
Chrysler as we know it is gone. Can GM survive is the question?