Whatever cuts are required, make them early and cluster them as tightly together as possible. If you don’t do that, it will appear that you are randomly hacking away until you happen upon a sustainable break-even threshold.

In reality, you’re about to transform an old-line engineering and manufacturing enterprise into a finance operation fronted by a branding and distribution company. Call the strategy “Embracing Our Strengths.”

Sell superiority. The Chrysler brand must shift to aggressive comparative marketing versus imports. A decade ago, all three U.S. automakers had effectively closed the quality gap with Japan and Europe. But they have since collectively committed marketing malfeasance by failing to close the perception gap—mainly because they were pitching generic hipness, irrelevant patriotism, or vague claims of luxurious style. Perception can no longer be allowed to trail reality. So you must explicitly stake out points of superiority on the most consumer-relevant quality and performance aspects of your vehicles. You can’t simply say you’re as good as imports; you must say how you’re superior. The tagline “Engineered Beautifully” plays to your historical strength as the industry’s fashion leader, but it will get you nowhere unless you fix the quality perception. Instead, go to “Engineered Better,” and then challenge your product guys to make it more credible every day. The dealers will love it, and the consumers will finally begin to reconsider. You must go fast, as Ford is already headed in that direction.


Leverage the dealer network. Remember that while your dealer network is economically strained, it is also an asset that cannot be replicated by a newcomer to the U.S. auto market. Thus, you should accelerate the alliance conversations with Chery. After you’ve completed the layoffs, announce that you have cut a long-term deal to put Chrysler’s skin and brand names on vehicles from China’s premier automaker. Price those vehicles to win at the low end. As you pump them out through your network, you’ll strengthen the marginal economics of both Chrysler and your dealers.

Limit your exposure. Once you’ve framed the crisis and articulated the strategy, you should master the Cerberus art of inaccessibility. Let LaSorda talk to labor, and let Press manage the dealers. Sign the product guy you’ve been chasing, and let him be the public evangelist for Chrysler style. Then, when the business model starts coming together about a year from now, offer exclusive access in exchange for a BusinessWeek cover story. Given its unquestioning love for anything G.E., you’ll probably get the cover headline you want. That will do much to reset your legacy, and you will then need to go quickly to the next action.

Get out on time—or even a bit early. Once you have made the big moves, there is no benefit in lingering, only liability. Stand tall in the chariot as you take a short, fast victory lap, but show complete graciousness by repeatedly saying, “It’s been an honor to lead the team that has restored a great American institution’s long-term viability.”

Do it again. Well before you leave Chrysler, ask Feinberg to buy another high-profile property with a broken business model and then give you the task of sorting it out. Ideally, go straight from Chrysler to the new gig, so it’s clear you are leaving because Cerberus wants the same kind of turnaround at the new company. Execute that assignment just as cleanly and then retire as a hands-on executive.

Do all that, and your reputation will be defined by your last two chapters, not the earlier ones titled “G.E. Bridesmaid” and “Overpaid Autocrat.” The orange aprons in Atlanta will still curse you, but the single-sentence summary of your broader legacy will read, “Bob Nardelli was the rough-edged realist who administered the tough love required to save two American business icons.”

P.S. Ask Welch to quit telling everybody you got raw deal at Home Depot. That does you even more harm than it does him.