Detroit has completed a new-model changeover of the executive suite.
December 31st, 2007DETROIT: Where have all the car guys gone?
With the surprise appointment last week of Robert Nardelli, the former Home Depot chief executive, to run Chrysler, Detroit has completed a new-model changeover of the executive suite. It is no longer a requirement to have “motor oil in your veins,” as they are fond of saying in Detroit, to run a car company.
None of the chiefs now leading the three American car companies can be credited for inspiring or developing anything on the roads today - the unofficial definition of what makes a Detroit chief executive a true “car guy.”
Only one of them, Rick Wagoner at General Motors, has more than a year of experience in the industry.
Also, very few of their highest-ranking colleagues have come up through the design, engineering or marketing side of the business so vital to Detroits existence.
It is a sharp break from a tradition stretching back to the industrys infancy, when car builders became chiefs of the companies that bore their names. As recently as last decade, all three chief executives could brag about cars they had helped develop.
Fords chief at the time, Donald Petersen, oversaw the Ford Taurus and earlier Fords. At GM, Robert Stempel engineered several vehicles, including the Oldsmobile Toronado.
And the most famous car guy of the time, Lee Iacocca, was credited with the success of Chryslers K-cars and its minivan (and the Mustang from a previous stint at Ford). As a marketing expert, though, he admittedly had others doing the actual development work.
But people in some quarters now argue that an outsiders pragmatic eye may be worth more than the gut instincts that come from bringing a car to life.
Given that the Detroit automakers have lost billions of dollars, and market share, to Japanese competitors in recent years, the evidence may be on their side.
Though car guys were responsible for Detroits triumphs, they also steered the companies into trouble with errors in judgment that included relying too heavily on big sport-utility vehicles.
“This is a business that needs to be run as a business,” Alan Mulally, Fords chief executive, said in an interview at an industry conference last week near Traverse City, Michigan.
Even Petersen, in a rare interview, agreed with that. “I think the concepts been overdone,” he said last week of the “car guy” mystique.
By insisting that only homegrown talent be promoted, Petersen added, “its undervaluing the inherent knowledge that you get about how things do in fact work in a very complex industrial setting.”
The appointment a year ago of Mulally, a former president of Boeing Commercial Airplanes, marked the first time an outsider had been appointed to run an auto company in Detroit, where lengthy careers at a single company are still the norm.
Wagoner, for example, joined GM 30 years ago and rose to chief financial officer in 1992 at age 39.
By contrast, Nardelli has barely finished his first week as an automobile executive.
His appointment has led to a kind of weeklong town hall discussion in the industry - in union halls, on Internet message boards and at an industry conference last week in Michigan - about who is best equipped to lead the industry out of its current troubles.
The Detroit News asked readers to share their opinions at its Web site after Nardellis appointment, and they had wide-ranging opinions about Chryslers future under its new owner, Cerberus Capital Management.
One reader wrote, “Nardelli is a great hired-gun manager, he learned at the best managed company in the country, GE” - meaning General Electric.
Another was less confident in the new boss: “Im terrified by what Nardelli and Cerberus could do to Chrysler.”
Nardelli hoped to win over some skeptics about his background when he stressed his love for Chrysler products at an Aug. 6 news conference - he said his garage included a Jeep, a Plymouth Prowler and a PT Cruiser.
But Edward Lapham, executive editor of Automotive News, a trade publication, wrote on Wednesday that it would be a mistake for Nardelli “to assume that just because he likes cars, hes a car guy.”
Arturo Reyes, the president of United Automobile Workers Local 651 in Flint, Michigan, said he was skeptical of Nardelli.
“I get more excited about the prospect of a company when were talking about a car guy who has seen the manufacturing process, who knows the design team, who can talk about quality and everything else,” Reyes said.
But George McGregor, the head of a UAW local in Detroit, said a “fresh pair of eyes” might not be all bad.

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