Hopefully, Cerberus made the right move in hiring such a controversial leader for the troubled car maker. I have always maintained the perspective that the American car makers are struggling because they knowingly release products that do not pass the competitive matrix. When you release products that are not desirable, the only way to push volume is through discounts, which make them far less profitable. There is a reason why the foreign car makers rely on rebates and discounts far less than the Big 3 do– they make desirable cars that stay within the target price range.
Bob’s biggest challenge is to lead Chrysler to profitability, and he will really need to evaluate Chrysler’s current processes and biz model in order to pull this off. Learn from others in other industries Bob — you cannot win on volume or price. Time for the consumers to expect some truly innovative vehicles to come out of the Chrysler factories, or we can all kiss Chrysler good bye.