When Cerberus Capital Management purchased control over Chrysler Holdings LLC, we wondered how the management of the company would change. Hiring Robert Nardelli as the CEO was one immediate signal that this would not be business as usual. Today, Nardelli dropped some news on Chrysler's employees:
Dear Employee,
A willingness to try something new has proven to be an important catalyst as we transform into The New Chrysler and, in many corners of this company, new ways of doing business are firmly taking root. That's not just because of new leadership; it's also a product of an "Own It" mindset. As a private company, we all need to think like owners and do our part to accelerate Chrysler's recovery and transformation.
One idea that we have taken a fresh look at is the implementation of a two-week mandatory vacation shutdown. This year, in order to create better alignment and efficiency across organizational lines and boost productivity, Chrysler will use a corporate-wide vacation shutdown for the weeks of July 7 and July 14. While some operations will need to work during the shutdown to support business-critical activities and others may need to maintain minimal support staffs in place, most organizations should use this two-week time period to schedule employee vacations.
Employees who have already used their earned vacation days, have insufficient earned vacation for the year or are otherwise committed to noncancelable vacation plans during other time periods should work with their local management to make alternative arrangements.
We ask that you approach this idea with an open mind and a team spirit. It's going to take your cooperation and teamwork to achieve success.
Thank you in advance for your cooperation and continued support.
Sincerely,
Bob
Even with an "open mind and team spirit," I would have a hard time figuring out what he is talking about. They have taken a "fresh look" at a "two-week mandatory vacation shutdown"? Was there a stale look on this idea?
Tell me again, Bob, why do you want to do this?
"To create better alignment and efficiency across organizational lines and boost productivity."
Yeah, nothing like a complete shutdown of the company to get your organization in sync and boost productivity.
Reuters is reporting that the real reason is more mundane: saving cash. But I suppose that it would not be very prudent to tell the employees, "People don't like our cars, so we don't need to make so many of them."
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1. Posted by M. Hodak on March 13, 2008 @ 13:41 | Permalink
Having drafted many memos from CEOs to employees, I was looking at this wondering, "Who in charge would let something like this go out?" For God's sake, nobody is going to fault a CEO for announcing, "We aren't selling enough cars to justify keeping the line running all year." Nobody is going to forgive a CEO for saying things like, "We need to create better alignment and efficiency across organizational lines and boost productivity." They'll think you're a pinheaded weenie.
2. Posted by Jake on March 13, 2008 @ 21:19 | Permalink
Agree the folks on the Chrysler assembly lines probably read this and wondered what Nardelli was smoking when he wrote it (or cut the check to the consultant who did).
On the other hand, what would the UAW prefer? A company-wide two week shutdown, or the closure of an entire plant or two so that the plants that remain can keep running all year long?
Perhaps Nardelli could try the French model and put the employees on a 35-hour work week. It made France the global engine of commerce, right? Right?
3. Posted by Cash Money on March 14, 2008 @ 20:55 | Permalink
Last week, I happened to be in a meeting with a man who in an earlier life was the top economist for one of the Detroit Big Three.
As the meeting ended and we were making small talk, I asked him about Chrysler's prospects.
He predicted it would be in bankruptcy by the end of the year and that only the Jeep name would survive. He said the company didn't have the cash for new models (it has a very tired line-up).
And with only 9% of its sales coming from overseas Chrysler doesn't have the sort of revenue stream that's now keeping Ford and GM alive.
His assessment is in line with what many Wall Streeters are predicting. We'll see if Nardelli manages to do anything to stave off the inevitable.
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