There are a few familiar faces on Chrysler’s newly complete board, which was announced over the weekend (via Chrysler Media). But not many. Chairman C. Robert Kidder, Sergio Marchionne and Fiat Powertrain CEO Alfredo Altavilla are the previously-announced, or otherwise-obvious picks. No surprises there. The other picks? Let’s take a look, shall we?
First up, we have the politically well-connected, namely James J. Blanchard. The former Michigan Governor, Ambassador to Canada, Congressman and Regulatory and Government Affairs honcho at one of the world’s largest law firms leaves little doubt as to why he’s on board. Chrysler’s going to need a D.C. ninja, steeped in the traditions of the Potomac two-step. Blanchard fits the bill. Is it any surprise then that Blanchard was the UAW’s pick to represent its VEBA stake?
George F.J. Gosbee (brief bio here) is the energy man, having managed several energy funds and founded Tristone Capital, a global energy advisory firm. He’ll be reading the energy-price tea leaves, and angling for the Canadian interest; according to the Wall Street Journal, Gosbee was the Canadian Government’s single pick on the Chrysler board.
Scott Stuart, founder of Sageview Capital and former partner at Kohlber Kravis and Roberts is likely a Kidder bagman, having served with the new Chairman on Duracell and Borden Chemical. He also served on the board of something named “Aveos Fleet Performance Inc.” which (it turns out) is the in-house maintenance service for Air Canada, not (as one might presume) the worst rental fleet ever. He was reportedly picked by the US government.
The airline theme continues with one of Fiat’s picks for the Chrysler board, Stephen Wolf. Wolf worked at Pan American World Airways, Continental Airlines and Republic Airlines, and was Chairman and CEO of United Airlines from 1987 to 1994. Wolf oversaw the handing over of 55 percent of UAL’s stock to employees in return for salary concessions. Sound familiar? Wikipedia notes that “the financial outcomes of the Employee Stock Ownership Plan (ESOP) were decidedly uneven for different players. As part of ESOP agreement, United CEO Wolf resigned and took a consulting job with Lazard Freres, the very investment company he had hired to advise United’s board during the ESOP buyout process…rank and file employees were locked into their stock, which got wiped out in the eventual bankruptcy.” Sounds… promising.
Yet another airline man, Douglas Steenland, was picked by the US Government. The former Northwest Airlines CEO apprently fared better than Wolf, although bankruptcy and incessant labor issues were a hallmark of his firm. Northwest dumped stock on its employees in 1993 and refused to buy it back as promised shortly before Steenland was named to the firm’s top CEO spot. Why is employee ownership such a recurring theme here? Oh right…
Filling out the US Government picks is Ronald Thompson of the Teachers Insurance and Annuity Association. Thompson provides some of the only auto sector experience on the new Chrysler board (outside of Fiat’s Marchionne and Altavilla), having grown his Midwest Stamping Companyinto a first-tier automotive supplier. Given Chrysler’s abysmal record of supplier relations, let’s hope Thompson can develop a culture of coexistence between ChryCo and its suppliers.
I don’t care what anyone says about Chrysler. If they tighten up their interior quality and keeep producing engines like they did last generation – they will be competitive.
I own a 300 and everyone loves my car. I love my car. I get more attention from my 300 than I do from my S550 (cause people think I’m a limo in the 550). Every single time I see a 300, I’m taken back by how great a car it is.
The Sebring people talk bad about, but people I know with Sebrings love their cars. I’ve never heard a single complain from a Sebring owner. In fact, I know people with Chrysler Town & country who love their vans.
All Chrysler has to do is better quality control and they’ll be great.
@ Flashpoint:
I own a Magnum, and my attitude and ownership experience jibes with yours.
Also agree about better quality control, but I am deeply uncertain that Fiat will bring that to the mix.
Perhaps people don’t speak poorly about their ChyCo cars because they feel sorry for you….
The Sebring people talk bad about, but people I know with Sebrings love their cars.
That doesn’t make it a good car. I’m sure there are people out there who love their Chevy Aveos.
Really? Cause if a car sells in numbers and its owners like it, I’d say it’s a good car provided it makes a profit for its maker. Obviously, that isn’t the case here. If the Sebring and / or Aveo were profitable lines, they would be good cars.
The people who paid cash money for a Pontiac Aztek really wanted one and thus paid for it and, unless the car fell apart, probably love it for the same reason(s) they bought it.
Yes, all ten of those people.
Chrysler’s image went downill FAST after Daimler bought it and stripped it. Their problem is mostly image and PR, which takes years to fix.
@MMH: if a car sells in numbers and its owners like it, I’d say it’s a good car
Y’sure about that? McDonalds and Burger King sell a whackload of their wares, and a lot of people like it. Is it good food? No, of course it isn’t. By any objective measure, it’s garbage, just like Chrysler’s present line of crap.
@ Stern:
Are McDonald’s quarterly revenue numbers an objective measure? If they are, then it’s good food. Good for their business, at least. Same answer for Chrysler. If they can sell a car that makes money for their shareholders, it is, by the most important definition, a good car. Of course, they can’t, so it’s kind of a moot point on my part.
And for the record, I won’t touch fast food burgers. It’s crap as a discerning consumer.
On a recent Auto show on local TV, one Aveo owner called in to say that his wife’s Car had to have the Engine rebuilt at 76,000 Kms. He didn’t say who was paying for it and I persume it wont be GM Canada either as they are broke too, the Pontiac Wave is the same model as is the Aveo here in Canada and just as bad as is the Aveo imho!!
The thing is, the people who managed to buy the Sebring aren’t important as far as discussion goes. It’s the people who showed up at the Chrysler dealer, sat in the car, and left wanting to throw up. To make a profit, they need to get new customers, not celebrate the ones they have, and slowly keep loosing.
If the interiors of the upcoming refreshed Grand Cherokee and 300/Charger as as nice as they look in the pictures on allpar, this should put to rest all of the whining about Chrysler interiors. Furthermore, if they are anywhere near as nice as the interior of the new Ram 1500, then I’d say they are on the right track. Things don’t happen overnight – it will take some time to undo the damage that Daimler did.
A KKR stooge on the board? Cerberus must be delighted! I hope they all eat each other.
BTW, IMHO the 300C is hands down the ugliest car on the road. Riding in one is like diving in a submarine with those tiny side windows. You can’t see squat.